Category: Azer News

The second day of the Fourth Climate Week (CW4) of the UN Framework Convention on Climate Change (UNFCCC) is being held in Baku.

Discussions on the second day are focusing on sustainable cities, transportation, water resources and agriculture.

The day’s agenda includes discussions on the challenges posed by climate change in the Caspian Sea and the impact of changing water levels on coastal ecosystems, communities, cities, infrastructure, transportation and economic activity.

Participants are also examining the benefits and challenges of integrating artificial intelligence into early warning systems for multiple hazards. Key topics include the deployment of AI-powered weather forecasting models, cybersecurity, data availability, technological reliability and international cooperation.

Digital transformation and the potential of artificial intelligence in developing climate-resilient agriculture are also prominent on the second day’s agenda. Discussions are focusing on the application of AI and data-driven solutions in Azerbaijan’s agricultural sector, mechanisms to support farmers, and ways to adapt water and food systems to the impacts of climate change.

Other sessions during the day will address green digital action, climate resilience and energy efficiency in digital infrastructure, as well as the integration of urban development into the global climate agenda.

Participants will also discuss how the outcomes of the 13th session of the World Urban Forum, held in Baku, can be incorporated into climate action ahead of COP31. The agenda includes the development of sustainable and climate-resilient cities, sustainable infrastructure, green construction, climate finance, and cities’ preparedness for climate-related risks.

Baku Climate Action Week (BCAW 2026) will continue through September 11.

Tickets have gone on sale for Azerbaijan’s national football team’s upcoming matches against Tajikistan in a friendly and against Liechtenstein and Lithuania in the UEFA Nations League.

The team is coached by Aykhan Abbasov. Azerbaijan will face Tajikistan in a friendly on September 23 at 20:00 at Palms Sports Arena.

The national team will then play Liechtenstein on October 1 at 20:00 at the Tofiq Bahramov Republican Stadium. On October 4, Azerbaijan will face Lithuania at 17:00 at Palms Sports Arena.

The 2026/27 UEFA Nations League is the fifth edition of the competition. The league phase will be played from September to November 2026, with teams divided into four leagues according to their rankings.

Azerbaijan will compete in League D, Group D2, alongside Lithuania and Liechtenstein. Each team in the group will play four matches, facing the other two teams once at home and once away.

Azerbaijan will begin its campaign away against Lithuania on September 27. The national team will then host Liechtenstein on October 1 and Lithuania on October 4. Azerbaijan’s final group match will be played away against Liechtenstein on November 13.

The first four matchdays of the league phase will be held from September 24 to October 6, while the final two matchdays are scheduled for November 12-17. The Nations League finals will take place from June 9 to 13, 2027.

Azerbaijan’s geostrategic position and developing transport infrastructure are strengthening the country’s role as a major transit hub in the Black Sea-Caspian region, Natig Jafarov, CEO of Alliance Multimodal, said during the 5th International Conference and Exhibition, Black and Caspian Freight Forum 2026: Corridors, Infrastructure, Investments.

Jafarov noted that Azerbaijan’s geographic location between major regional powers gives the country significant potential to serve as a key transport link between East and West.

“Azerbaijan’s geopolitical situation owes [it] to be a major transport power in the region,” he said, highlighting the importance of the Port of Baku as a central element of the country’s transport infrastructure.

He noted that Azerbaijan is connected to more than 33 countries through its transport network, with major routes linking the country to Georgia, Trkiye, Russia and European markets.

Jafarov also highlighted the development of railway infrastructure and the expansion of the Baku-Tbilisi-Kars railway, saying that continued investment is aimed at increasing the capacity of regional transport corridors. According to him, the Baku-Tbilisi-Kars railway currently has a capacity of around 30,000 tons annually and noted that the line has already been expanded.

Turning to the maritime sector, he said that the Port of Baku currently has significant cargo-handling capacity, which is expected to increase further as infrastructure development continues. Jafarov pointed out that the Port of Baku currently has an annual handling capacity of around 150,000 tons, which is expected to increase to approximately 260,000 tons next year.

At the same time, Jafarov stressed that infrastructure alone is not sufficient to ensure stable growth in regional transit.

“We are all aware of the global crisis and how it’s affecting us,” he stressed, noting that instability in global trade and shipping has become a major challenge in recent years.

According to Jafarov, disruptions in maritime transport have also affected freight rates. He noted that container shipping rates from China experienced significant fluctuations during and after the COVID-19 pandemic and were pushed higher again by subsequent disruptions in global shipping.

He added that the changing global trade environment makes the development of alternative transport routes increasingly important.

Ruslan Alikhanov has been dismissed as chief executive officer and member of the Management Board of Azerbaijan Investment Holding (AIH), the Azerbaijani government announced Tuesday.

The Cabinet of Ministers approved the decision, following a submission by the chairman of AIH’s Management Board, and Prime Minister Ali Asadov, who also chairs the holding’s Supervisory Board, signed off on it.

Alikhanov’s deputy, Dayanat Sadullayev, has been appointed to serve as acting CEO on a temporary basis. The holding’s Management Board has also been instructed to take the necessary measures arising from the decision.

The government did not provide a reason for Alikhanov’s dismissal.

Alikhanov’s four-year tenure

Alikhanov had led AIH since 2020, when he was appointed CEO following the establishment of the state holding by presidential decree in August of that year. AIH oversees a portfolio of major Azerbaijani state-owned companies and is tasked with improving their corporate governance and efficiency.

Before joining AIH, Alikhanov built a career spanning international finance, consulting, energy and transportation. His career began at the World Bank, after which he worked at Dell in the United States and spent more than a decade at McKinsey and Company. He subsequently held executive positions at FESCO Transportation Group, Argo Investment Company and Boston Consulting Group.

During his tenure at AIH, he also served on the supervisory boards of major Azerbaijani companies, including SOCAR and Azer-Turk Bank. He remained a member of SOCAR’s Supervisory Board and chaired the Supervisory Board of Azer-Turk Bank.

As recently as July, Alikhanov represented AIH in signing a memorandum of understanding with the Trkiye Wealth Fund to explore joint investment opportunities and projects in strategic sectors.

The leadership change comes months after AIH reviewed the 2025 performance and financial results of its portfolio companies at a Supervisory Board meeting chaired by Asadov. Alikhanov presented the holding’s assessment of the portfolio companies’ performance at that meeting.

Sadullayev, who will temporarily take over as CEO, is also deputy CEO of PASHA Holding and president of the American Chamber of Commerce in Azerbaijan (AmCham Azerbaijan).

Trkiye has welcomed and supported measures taken by 12 countries, led by the United Kingdom, France and Canada, to ban trade and business relations with illegal settlements in the West Bank, according to a statement issued by the Turkish Ministry of Foreign Affairs on September 8.

‘We welcome and support the measures taken by twelve countries, led by the United Kingdom, France, and Canada, aimed at banning trade and business relations with illegal settlements in the West Bank,’ the ministry said.

Ankara said Israel’s efforts to undermine the two-state solution are intensifying, arguing that Israeli settlements have become part of what it described as a systematic policy of occupation.

‘Israel’s efforts to undermine the two-state solution are intensifying with each passing day,’ the statement said, adding that ‘illegal settlements have evolved into a systematic policy of occupation, threatening the very existence of the State of Palestine.’

The Turkish Foreign Ministry also accused Israeli settlers of engaging in what it described as ‘ethnic cleansing,’ saying that a firm international response is necessary to achieve a peaceful resolution to the Israeli-Palestinian conflict.

‘Ensuring a peaceful resolution to the Israeli-Palestinian question and establishing a just and lasting peace in the region requires a firm response against Israel’s acts of occupation,’ it said.

Trkiye called on other members of the international community to adopt similar measures.

‘In this regard, we expect all responsible members of the international community to take similar decisions,’ the ministry stated.

Ankara also reaffirmed its support for the establishment of an independent, sovereign and contiguous Palestinian state based on the 1967 borders, with East Jerusalem as its capital.

‘Trkiye will continue its efforts towards the establishment of an independent, sovereign, and contiguous State of Palestine on the basis of the 1967 borders, with East Jerusalem as its capital,’ the statement concluded.

It should be noted that, UK expects France and Canada to follow its lead in announcing a ban on goods from illegal Israeli settlements on Tuesday, potentially amplifying diplomatic pressure on Israel over its settlement expansion.

A United States MQ-1 Predator drone was detected and shot down over the Strait of Hormuz, Iran’s Islamic Revolutionary Guard Corps (IRGC)-affiliated Fars News Agency reported on Tuesday.

According to the report, the operation was carried out by the air defense forces of the Islamic Republic of Iran Army, the country’s regular military, in southeastern Iran. US officials have not yet confirmed or denied the incident.

In late August, the IRGC claimed it intercepted and destroyed an American MQ-9 Reaper drone east of the Strait of Hormuz using “advanced” defense systems.

A new stage is taking shape in Azerbaijan’s energy sector, whose exports have been largely associated with oil and natural gas for many years. Currently, another important direction is being added to Azerbaijan’s energy potential: green energy. Recent indicators show that this sector is beginning to manifest itself in real electricity production.

The rapid growth observed in wind energy is particularly noteworthy. In January-June 2026, 475.7 million kilowatt-hours of electricity were produced at wind power plants in Azerbaijan. This is an increase of 454.7 million kilowatt-hours compared to the same period last year. In other words, an extremely large leap has been recorded in wind energy production.

What is more interesting is that the growth is expected to continue in the second half of the year. According to the statement of the Minister of Energy of Azerbaijan, Parviz Shahbazov, by the end of 2026, wind energy production is expected to increase by about six times, and solar energy production by more than 26 percent.

These figures show that Azerbaijan’s renewable energy strategy is starting to yield practical results.

Solar energy also plays an important role in this process. In the first six months of 2026, 282.7 million kilowatt-hours of electricity were produced at solar power plants. Taking into account hydroelectric power plants, the total electricity production from renewable energy sources amounted to 2.7937 billion kilowatt-hours.

This dynamic creates a greater opportunity for Azerbaijan. The country can prepare to satisfy only part of its domestic electricity demand from renewable sources and export part of the green electricity it produces to foreign markets in the future.

This is where Azerbaijan’s 2030 targets are of particular importance. In the coming years, the country plans to implement new projects in solar and wind energy, increase generation capacity, expand the electricity grid, and create energy storage capabilities. This process creates the basis for turning Azerbaijan’s large renewable energy potential into an exportable product.

The European direction is one of the most important parts of this strategy. The planned electricity connections to export Azerbaijan’s green electricity to the European market via Georgia and the Black Sea could open up new export opportunities for the country. In particular, the creation of a roughly 3-gigawatt transmission facility forms an important infrastructure base for Azerbaijan to supply larger volumes of energy to the European electricity market in the future.

It is possible to talk about the expansion of Azerbaijan’s energy export model. For a long time, the main export products in the country’s energy sector have been oil and gas. In the future, green electricity may also be added to this list.

This could create a number of important economic advantages for Azerbaijan. First of all, diversifying energy exports would strengthen the long-term sustainability of the country’s energy sector. Second, new wind and solar projects would encourage foreign investment, the introduction of new technologies to the country, and the development of energy infrastructure. Third, Azerbaijan could strengthen its position as a new partner in Europe’s energy transition.

One of the most important points is that Azerbaijan has great natural advantages for this process. The Caspian Sea is distinguished by its particularly strong wind potential. There are also extensive opportunities for using solar energy in various regions of the country. Combining these resources with modern technologies, a strong electricity grid, and energy storage systems could enable Azerbaijan to generate large amounts of green electricity.

In this regard, the breakthrough in wind energy production in 2026 can be seen as the beginning of a larger process. The nearly six-fold increase in wind energy production and the expectation of a more than 26 percent increase in solar energy indicate that Azerbaijan’s green energy sector is growing rapidly.

If this dynamic continues in the coming years, 2030 could mark the beginning of a new stage in Azerbaijan’s energy history. While remaining a traditional energy exporter, the country could also become a green electricity exporter.

For decades, pipelines have defined Azerbaijan’s energy map. The energy map of the future may gradually be defined by power cables.

The main opportunity for Azerbaijan lies precisely in this: converting the wind of the Caspian and the country’s sun into electricity and exporting it to regional and European markets. This is not just a new energy project, but the formation of the future model of Azerbaijan’s energy exports.

The feature film ’44’, dedicated to the 44-day Patriotic War, will premiere on October 1, 2026, at the Heydar Aliyev Center in Baku.

Assistant to the President of Azerbaijan Anar Alakbarov announced this in a post on his Instagram page.

In his post, Anar Alakbarov wrote:

“Dear friends!

The long-awaited premiere of the feature film ’44’ will take place at the Heydar Aliyev Center on October 1, 2026. Screenings of the film will then continue in cinemas across the country.

Twelve teasers have been prepared ahead of the premiere, and we will share them with you over the coming weeks.

Today, we are pleased to present a series of the film’s official posters.

The first teaser will be released tomorrow!”

The US Department of Labor’s announcement of the number of non-farm payrolls in the country on September 4 was eagerly awaited around the world, including Azerbaijan.

In detail, central banks around the world were expected to lower interest rates in 2025. Several central banks, including the Azerbaijani central bank, also lowered interest rates in 2025.

This trend was expected to continue in 2026. However, as a result of the ongoing Ukraine-Russia war and the war in the Middle East, some experts began to doubt the possibility of lowering interest rates.

In June 2026, first the European Central Bank raised interest rates by 0.25 percentage points to 2.25, and then the Bank of Japan (BOJ) raised its policy rate by 0.25 percentage points to 1% from 0.75%, overturning these expectations.

Inflation in the US also exceeded the Fed’s expectations. Inflation in the US also remains above the Federal Reserve’s 2% target. The annual CPI in July was 3.4%. The latest speech by Fed Governor Christopher J. Waller weakened expectations that interest rates would be cut soon. Thus, Mr Waller said, ‘If this continues in the data due over the next two weeks, I would be inclined to support holding the target for the federal funds rate at its current setting.’ Mr Waller also added, ‘If the incoming data for August show this improvement has been fleeting, then it may be appropriate to raise the policy rate when the FOMC meets on September 15 and 16.’

The U.S. Bureau of Labor Statistics (BLS) reported today that nonfarm payrolls rose by 162,000 in August, while the unemployment rate remained unchanged at 4.1 percent. Inflation above the Fed’s target and labor market gains that were significantly stronger than expected have dampened expectations of a slowdown in the U.S. economy.

These indicators increase the likelihood that the Fed will keep interest rates at their current levels at best, or raise them in a more severe scenario.

A Fed rate hike could boost the yields on U.S. dollar-denominated assets, making the dollar more attractive to investors and increasing capital flows into the U.S., which could put pressure on emerging market currencies and financial markets.

An unexpected increase in U.S. interest rates linked to monetary policy could also raise long-term interest rates in emerging market economies, dampen capital flows, and depreciate local currencies against the dollar. As a result, central banks may be forced to raise or maintain interest rates at high levels to protect the national currency and price stability. On the other hand, not raising interest rates and allowing the national currency to weaken could result in higher import prices and stronger inflationary pressures.

As for Azerbaijan, the situation may differ somewhat from other emerging markets. Azerbaijan’s large foreign exchange revenues from energy exports and high foreign exchange reserves create an important buffer against financial shocks.

Thus, the continued high energy prices against the backdrop of the Russia-Ukraine war and ongoing tensions in the Middle East could support Azerbaijan’s foreign exchange inflows and partially offset potential pressures on global financial markets. The 2026 state budget assumes an oil price of $65 per barrel, while prices are hovering $90-100 per barrel.

On the other hand, rising natural gas prices in Europe could also be an additional positive factor in terms of Azerbaijan’s revenues from energy exports. The increase in the price of futures for October at the TTF gas hub in the Netherlands to 69.9 euros per megawatt-hour also indicates that prices in the European gas market remain high.

Furthermore, the official foreign exchange reserves of the Central Bank of Azerbaijan amounted to $13.77 billion as of July 31. This is the highest figure since 2015. The reserves have increased by $2.2 billion or 19.5% since the beginning of the year.

Moreover, the volume of deposits in the banking sector also remains high. As of August 1, the total deposit portfolio of banks amounted to ?44.5 billion (approximately $26.2 billion). Of this, approximately ?22.2 billion ($13.1 billion) is held by companies, ?17.9 billion ($10.5 billion) by households, and ?4.4 billion ($2.6 billion) by financial institutions. This indicates that a fairly large domestic financing base has been formed in the banking sector.

However, this does not mean that Azerbaijan is completely isolated from global inflationary processes. Rising global food and raw material prices, rising logistics costs, and price increases in major trading partners may put pressure on domestic prices through import inflation.

Therefore, in a scenario where the Fed raises interest rates, the initial impact on Azerbaijan may be limited compared with that on more vulnerable emerging markets. However, if monetary tightening in the United States continues for an extended period, strengthening the dollar and further tightening global financial conditions, the Central Bank of Azerbaijan may also adopt a tighter monetary policy in response to rising risks to inflation, the foreign exchange market, and financial stability.

European Union foreign policy chief Kaja Kallas has voiced concern over the growing popularity of political parties that, in her view, fail to recognize the threat posed by Russia following the far-right Alternative for Germany (AfD) party’s victory in Germany’s Saxony-Anhalt state.

BNS reported that Kallas said political forces that overlook what she described as growing ‘hybrid threats’ in Europe are gaining popularity.

According to Kallas, some parties are strengthening their positions by arguing, in effect, that there is no need to take action because the threats do not concern them.

The EU’s foreign policy chief expressed concern that such a political trend could undermine Europe’s preparedness to respond to hybrid attacks.

‘That is why I am simply afraid that one day we could wake up and find ourselves in a situation where we realize that we have not taken sufficient steps to counter the threats and defend ourselves,’ Kallas said. At the same time, she acknowledged that German citizens, as voters in a democratic country, must make their own choices.

The comments came after the Alternative for Germany (AfD) won 43.8% of the vote in elections to the Saxony-Anhalt state parliament, securing a decisive victory. The Christian Democratic Union (CDU), which leads the state government, received 17.2% of the vote – less than half the AfD’s share.

The result marks the AfD’s strongest performance in a state-level election in the party’s history.