Category: Azer News

Sweden could face a prolonged period of political uncertainty after preliminary election results showed the left-leaning opposition holding a narrow lead over the governing conservative bloc, while a hard-right anti-immigration party lost ground.

With nearly 95% of electoral districts counted, the Swedish Election Authority said four opposition parties were projected to win 176 of the 349 seats in the Riksdag, Sweden’s parliament. The four parties that make up or support the outgoing conservative-led government were projected to secure 173 seats.

The three-seat margin leaves the final outcome far from settled. Early votes, including ballots cast overseas that had not reached polling stations by Election Day, are due to be counted on Wednesday and could affect the balance of power.

The result means Sweden may have to wait before it becomes clear which political bloc can assemble a governing majority and who will lead the country for the next four years.

The election is also being closely watched because Sweden joined NATO in 2024, making the composition of its next government significant for the alliance’s newest member.

The hard-right anti-immigration party, which had emerged as an increasingly influential force in Swedish politics, appeared to have suffered a setback, although its final result could still influence coalition negotiations.

With neither bloc holding a clear majority on the preliminary count, Sweden now faces potentially difficult negotiations over the formation of its next government.

European Union foreign policy chief Kaja Kallas has called for the bloc to adopt the same approach toward Israeli settlements in the occupied Palestinian territories that it took toward Russian-occupied Crimea.

Speaking to The Irish Times on Friday, Kallas said the EU could not be taken seriously while member states remained divided over how to respond to actions by the Israeli government and violent settlers.

She urged EU countries to adopt what she described as a ‘principled stance’ by supporting an EU-wide ban on trade with Israeli settlements, which are considered illegal under international law.

Kallas acknowledged that the volume of trade with the settlements is relatively small but said a ban would carry significant symbolic importance.

‘The question is what do we do about this? If we take the example when Crimea was occupied, then it was very clear, it’s illegal, we don’t recognise this, which means that we stop the trade with any products that come from Crimea,’ Kallas said.

‘We should have the same principled stance – you know this is illegal, everybody agrees – so we should stop trading with occupied [Palestinian] Territories,’ she added.

According to Kallas, the European Commission is facing ‘very clear’ pressure from national governments to propose an EU-wide trade ban on settlement products. She also said European institutions ‘get a lot of bashing’ over their failure to impose sanctions on Israel amid the war in Gaza.

If introduced as an EU trade measure rather than a foreign policy decision, the proposal would require the support of a qualified majority of member states rather than unanimity. Germany, Hungary, the Czech Republic and Slovenia currently oppose sanctions against Israel.

Kallas said the precedent set by the EU’s response to Russia’s occupation of Crimea demonstrated how the bloc could approach goods originating from territory it does not recognize as legally belonging to the occupying power.

Following Russia’s annexation of Crimea in 2014, the EU prohibited the import of goods from the peninsula and imposed a series of economic sanctions on Russia, later expanding restrictions to areas including arms, energy and technology exports.

On September 14, during a meeting with the President of the Republic of Azerbaijan, Ilham Aliyev, Mohamed Abdelsalam, Secretary-General of the Muslim Council of Elders, presented the certificate of the Zayed Award for Human Fraternity to the head of state.

President Ilham Aliyev was honored with this award in 2026 in recognition of his contributions towards establishing peace between Azerbaijan and Armenia.

In accordance with the terms of the award, the President of Azerbaijan is granted a monetary prize of 500,000 US dollars.

President Ilham Aliyev has directed that the full amount be transferred to the Garabagh Revival Fund.

The expansion of the Middle Corridor is becoming increasingly important for the economic prospects of Central Asia and the South Caucasus. What was initially viewed mainly as an alternative transport route between Asia and Europe is gradually gaining wider economic importance, affecting financing conditions and the development of domestic financial markets.

The corridor connects China with Europe through Central Asia, the Caspian Sea, Azerbaijan, Georgia and Trkiye. Its growing importance is closely linked with the restructuring of regional trade flows since the outbreak of the Russia-Ukraine war in 2022. As businesses kook for routes that bypass Russia, countries along the Middle Corridor have gained an opportunity to increase their share of transit activity, trade, and related investments.

Azerbaijan and Kazakhstan could use this advantage to push ahead with economic diversification and reduce dependence on hydrocarbons. According to Moody’s, the non-oil sectors of both economies are showing steade growth, supported mainly by national banks and government diversification programmes. This combination has created a favorable environment for financial institutions, while also supporting lending to companies outside the traditional commodity sectors.

The improvement in banking-sector performance is not simply a result of increased economic activity. Tighter regulation, better credit quality, sustained profitability and liquidity reserves have strengthened banks’ ability to absorb shocks. These factors are important as the region is gaining an increasing role in cross-border trade and infrastructure investment, where financing requirements tend to be significant and projects often have long payback periods. Corporate conditions have also benefited from steady economic growth, government reforms and relatively good access to domestic financing.

Moody’s expects real GDP growth across much of Central Asia and the Caucasus to remain strong, with many economies continuing to expand at rates above 5 percent. Diversification and regional integration are expected to account for an increasing share of this growth, with the further development of the Middle Corridor becoming one of the more important factors.

Inflation, however, remains a significant variable. Moody’s expects inflation in 2026 to differ considerably across the region, ranging from about 4 percent in Tajikistan to more than 11 percent in Kazakhstan. Such differences will affect monetary policy, borrowing costs and the ability of banks and companies to obtain affordable long-term funding.

Another notable development is the growing movement of economic activity and financing away from Russia toward other markets. According to Moody’s, this has continued to improve operating conditions for regional banks and companies. Government development programmes are creating additional lending opportunities, while an increasing number of financial institutions and corporations are turning to international capital markets.

Kazakhstan remains the regional leader in this respect. Its access to international and Asian capital markets has supported a rise in cross-border placements and helped diversify funding sources. During the first half of 2026, the volume of cross-border placements had already come close to the total recorded for all of 2025. This points to stronger investor interest, but also reflects a growing requirement among banks for longer-term financing.

For lenders, access to such funding is increasingly important. Longer maturities and lower funding costs allow banks to extend investment loans at home and respond to rising demand from companies. At the same time, international investors remain sensitive to geopolitical developments, meaning that access to external capital cannot be treated as permanently assured.

Uzbekistan provides a different example. Its eurobond-market activity was relatively limited during the first half of 2026. This is not so much due to limited market access, but rather to a transitional period in regulation and reduced financing requirements.

Taken together, these trends suggest that the Middle Corridor should be viewed as part of a broader reallocation of trade and capital across Eurasia. Significant investments are needed to fully realize the potential of the corridor. The main risks include limited transportation opportunities across the Caspian Sea, infrastructure constraints, project implementation, and increased debt burden. Despite this, the countries of Central Asia and the Caucasus may also be indirectly influenced by geopolitical processes, primarily through the inflationary channel. Rising prices for energy and other commodities may delay monetary policy easing and lead to continued high interest rates and borrowing costs.

Low natural gas storage levels in Europe for this time of year, combined with rising oil and petroleum product prices, are creating new risks for energy markets ahead of the winter season.

According to Greece’s Oikonomikos Tachydromos (OT), European gas storage facilities are currently around 67% full. The publication compares the current situation with the energy crisis of 2022, when energy prices surged sharply.

Ongoing tensions in the Middle East, risks to energy infrastructure and transportation, as well as declining reserves on the market, are putting additional pressure on gas, electricity and fuel prices.

The situation in Greece is being closely monitored ahead of the winter season. If current market conditions persist, heating oil prices could rise to around pound 1.80 per liter in the new season, compared with approximately pound 1.13 at the beginning of the previous season.

This means heating fuel prices could increase by as much as 60%, potentially placing significant pressure on household budgets. The Greek government is reportedly considering additional support measures.

Gas storage levels are one of the key indicators of Europe’s preparedness for winter. A sharp increase in consumption during cold weather, coupled with limited alternative supply options, could further increase price volatility.

A new rise in energy prices could affect not only consumer spending but also industrial production, transportation and inflation. European countries are therefore accelerating efforts to increase gas reserves and expand alternative energy sources ahead of the winter season.

A territorial dispute remains the main unresolved issue in efforts to end Russia’s war against Ukraine, with Kyiv unwilling to make territorial concessions, US President Donald Trump’s envoy Jared Kushner said.

Speaking at the Yalta European Strategy (YES) conference on September 11, Kushner said Russian President Vladimir Putin had outlined Moscow’s territorial demands during talks in Moscow on September 5.

Kushner appeared to be referring to Russia’s demand that Ukraine withdraw from parts of the Donbas that remain under Kyiv’s control.

‘President Putin laid out his line of what he wants to achieve,’ Kushner said during a panel discussion. ‘If Ukraine wanted to withdraw to that line, then obviously, you know, we have the rest of the deal set up and put together. Ukraine right now does not want to do that.’

The remarks indicate that the territorial question remains a key obstacle to a potential peace agreement between Moscow and Kyiv.

The Kremlin has repeatedly rejected calls for an unconditional ceasefire and demanded that Ukraine cede territory in the Donbas, a strategically important region in eastern Ukraine that is partially occupied by Russian forces.

Moscow’s position effectively calls for Kyiv to relinquish territory that Russian forces have not been able to capture militarily.

On September 14, President of the Republic of Azerbaijan Ilham Aliyev attended the opening of the first phase of the ‘SABAH.city’ innovation campus, established at the High Technologies Park of the Ministry of Science and Education in Baku.

Minister of Science and Education Emin Amrullayev briefed the head of state on the ‘SABAH.city’ innovation campus.

The project will cover a total area of 20 hectares. The first phase encompasses more than 5 hectares, with a total built-up area of 20,000 square meters. Construction began in October last year, resulting in a complex comprising four interconnected buildings. The campus features five restaurants, a market, and an event hall, as well as outdoor sports facilities, including basketball and football fields and two padel courts, along with outdoor recreation areas, pedestrian and bicycle lanes, and parking lots.

The campus is intended to engage more than 1,500 students from Baku State University, Azerbaijan Technical University, and Azerbaijan State Oil and Industry University, who are studying engineering, information technology, and applied sciences, in educational and practical activities. Once fully operational, the campus is expected to welcome approximately 3,000 visitors daily.

The ASAN AI Hub has also been established within the campus. Ulvi Mehdiyev, Chairman of the State Agency for Public Service and Social Innovations under the President of the Republic of Azerbaijan, informed President Ilham Aliyev about the ASAN AI Hub, the ‘INNOLAND’ Incubation and Acceleration Center, and the ‘AI Assistant’ project of ‘ASAN service.’

The ASAN AI Hub was established to support innovative initiatives in artificial intelligence in Azerbaijan, bring together researchers, government institutions, the private sector, and individual users on a single digital platform (www.asanhub.ai), and strengthen cooperation among government, business, and educational institutions by promoting an open innovation model. To date, a total of 50 artificial intelligence solutions have been presented. The ASAN AI Hub has established cooperation with eight universities in the country, the Azerbaijan National Academy of Sciences, several prestigious foreign universities, including Tsinghua University (China), the University of Oxford (United Kingdom), and Bogaziçi University (Trkiye), as well as other internationally renowned partners.

To date, 150 startups have benefited from the ‘INNOLAND’ Incubation and Acceleration Center of ‘ASAN service,’ and four startups have been acquired by foreign investors.

The ‘AI Assistant’ platform enables users to quickly and easily receive, analyze, and forecast information on various operational areas of ‘ASAN service’ in a conversational format.

A total of 13 training and research laboratories have been established by Baku State University, Azerbaijan Technical University, and Azerbaijan State Oil and Industry University at the ‘SABAH.city’ innovation campus.

The laboratories are intended to conduct research and applied activities in priority scientific and technological fields, such as artificial intelligence, robotics, computer science, cybersecurity, biotechnology, nanobiology, nanophysics, chemistry, telecommunications, and others.

The campus also features a coworking zone, a shared workspace for individuals and companies, which houses 12 startups, along with 22 office spaces for local and international technology companies, corporate research and development centers, and other participants in the innovation ecosystem.

In addition to the three higher education institutions, a total of 23 key ecosystem participants, including eight technology- and innovation-oriented companies and 12 startups, have been involved in the first phase of the project.

The main goal of the project is to create an innovation environment that strengthens interaction among the key participants of Azerbaijan’s innovation, science, education, and high-technology ecosystem by bringing them together in a single venue. Serving as a comprehensive innovation platform that supports the transformation of knowledge and technology into economic and social value, ‘SABAH.city’ will contribute in the long term to strengthening human capital, applied science, technology transfer, and the competitiveness of Azerbaijan’s innovation ecosystem.

Iran and Oman have agreed on the text of an agreement establishing safe shipping routes following several weeks of negotiations, Iranian Foreign Ministry spokesperson Esmail Baghaei said.

According to Baghaei, the agreement takes into account the sovereign rights of both countries. The text is expected to be presented at a meeting involving countries from the region. He expressed hope that other regional states would also support the initiative by Iran and Oman.

“Iran has repeatedly stated that it does not wish to jeopardize its well-founded and forward-looking steps based on the rash actions of other parties. Iran and Oman, as two coastal states, have reached a decision on an issue directly concerning their interests regarding the Strait of Hormuz. The parties have reached an agreement on a single text. Currently, Iran and Oman wish to hold a meeting with the participation of countries in the region to present their agreements and define a rational and far-sighted strategy,” he noted.

Esmail Baghaei also added that Iran wants to build a secure region through the efforts of neighboring countries alone, without the involvement of “destructive external actors.”

Meanwhile, a meeting involving Gulf countries was scheduled to take place today in Oman to discuss the understanding between Iran and Oman regarding the Strait of Hormuz, but the meeting was canceled.

Australia is moving to introduce legislation that would give social media users greater control over the algorithms that determine what content they see online.

The proposed legislation comes amid growing concerns over the influence of recommendation systems on user behaviour and the way social media platforms use algorithms to select posts, videos and other content based on users’ previous activity and interests.

Under the proposal, users would have greater options for managing recommendation systems, including the ability to disable certain algorithms or limit the use of behavioural tracking to personalise content.

Supporters of the move argue that users should have greater control over their online experience rather than allowing platform algorithms to determine which content is prioritised on their feeds.

Recommendation algorithms are widely used by major social media platforms to increase user engagement, with systems designed to identify content likely to keep users viewing, scrolling and interacting for longer periods.

The Australian proposal reflects wider concerns that such systems can influence users’ behaviour by repeatedly promoting content based on their previous interactions.

However, implementing the proposed rules could present significant technical and regulatory challenges.

Major social media companies operate complex algorithmic systems across multiple countries, making it difficult for national regulators to establish effective oversight and ensure that platforms comply with local requirements.

The legislation would therefore require mechanisms for monitoring how platforms use recommendation systems and how users’ choices over algorithms are implemented in practice.

The Australian initiative is part of a broader international debate over the power of technology companies to shape users’ digital environments.

If adopted, the measures would give Australian users a more active role in determining how social media platforms use algorithms, personal data and behavioural tracking to deliver content.

The proposal could also add to pressure on major technology companies to provide users with greater transparency and control over the systems that govern their online experiences.

Azerbaijan has received a total of $5.6 billion in financing for 160 projects since joining the Asian Development Bank (ADB), the Azerbaijani Ministry of Finance reported.

Finance Minister Sahil Babayev, who also serves as Azerbaijan’s Governor for the ADB, met with a visiting delegation of members of the bank’s Board of Directors on September 14.

The meeting focused on the current state and future prospects of Azerbaijan-ADB cooperation, including joint projects, private sector development, public-private partnerships and regional cooperation.

Babayev highlighted the importance Azerbaijan attaches to its partnership with the ADB, describing the bank as a long-term and reliable partner. He noted that ADB-financed projects and the bank’s technical and financial support contribute significantly to the implementation of Azerbaijan’s development priorities.

The minister said strengthening the private sector’s role in diversifying the economy and supporting sustainable economic growth was among the key priorities of the Country Partnership Strategy for 2025-2029.

In this context, the sides emphasized the importance of expanding the ADB’s non-sovereign operations and creating greater opportunities to attract private investment and capital into Azerbaijan’s economy.

ADB Board members, for their part, underscored the importance of the long-standing and productive partnership with Azerbaijan.

Particular attention was given to continuing cooperation under the Central Asia Regional Economic Cooperation (CAREC) Program and expanding joint initiatives in transport, energy and trade.

The officials also discussed the ongoing Azerbaijan Railways Digital Transformation Project, along with new projects being developed jointly with the ADB in the energy, transport and water sectors.