Category: Azer News

Germany is on the verge of its most significant pension system reform in the past 20 years, a move that could put traditional insurance companies under serious pressure and reshape the country’s retirement savings market.

The new rules are expected to come into force in January. One of the key changes is a sharp reduction in commission fees, which will be capped at 1% instead of the previous 4%. This could redirect hundreds of billions of euros from traditional insurers toward global asset managers, investment firms, and other financial service providers. According to Morgan Stanley analysts, the reform could generate an additional pound 40 billion in annual capital flows into financial markets.

The main goal of the reform is to improve long-term pension returns by giving up some of the strict guarantees traditionally offered by insurance-based pension products. Under the new system, mandatory lifelong annuities could be replaced with more flexible withdrawal options, allowing retirees to have greater control over how and when they access their savings.

However, the insurance industry has raised concerns about the potential risks. Without strong lifelong guarantees, retirees could become more exposed to market downturns, particularly during periods of high volatility. A major market decline shortly before or after retirement could significantly reduce the value of a person’s pension savings.

There are also concerns about whether the financial infrastructure will be ready for the January launch. The new system will require complex administrative and digital processes, and experts question whether all providers will have enough time to adapt.

At the same time, competition for pension customers is becoming increasingly intense. Digital brokers and fintech companies are entering the market, offering low fees, user-friendly investment platforms, and greater flexibility. This could be especially attractive to younger Germans, who are generally more comfortable managing their finances through digital services.

An interesting aspect of the reform is that it could gradually change the way Germans think about retirement savings. Germany has traditionally relied heavily on insurance products and relatively conservative pension investments. A greater shift toward market-based investments could encourage millions of people to participate more directly in capital markets.

If successful, the reform could therefore have effects far beyond the pension sector. It may strengthen Germany’s investment market, increase competition among financial providers, and give savers more choice. At the same time, it will force both regulators and consumers to confront an important question: how much investment risk should individuals be expected to take in exchange for the possibility of higher retirement returns?

The success of the reform will ultimately depend on whether Germany can strike the right balance between higher potential returns, financial stability, consumer protection, and the need to prepare the system for an ageing population.

A total of 4,010 Azerbaijani citizens are officially registered as missing in connection with the First and Second Karabakh Wars, according to data released by Azerbaijan’s State Commission on Prisoners of War, Hostages and Missing Persons as of August 31, 2026.

The figures show that 4,004 people went missing during the First Karabakh War, while six are missing in connection with the Second Karabakh War.

Of the 4,004 people who went missing during the First Karabakh War, 3,222 were military personnel, and 782 were civilians.

The civilian group includes 71 children, 288 women and 319 elderly people.

According to the State Commission, 910 sets of human remains have so far been discovered and exhumed as a result of search and excavation efforts. Of these, five were discovered in August 2026, while 79 were found during the first eight months of the year.

Meanwhile, the identities of 328 missing persons have been established through DNA testing and forensic methods. The identities of 57 people were established between January and August 2026.

The remains of 267 identified individuals have been handed over to their families and buried. Of these, 21 were handed over for burial in August, while 64 were recorded during the first eight months of 2026.

Authorities have so far identified 32 mass burial sites in Azerbaijan’s territories liberated from occupation.

As a result, 3,682 people are still officially considered missing.

The State Commission said it would continue efforts to locate missing persons, discover and exhume human remains, establish their identities and return the remains to their families.

As the Shanghai Cooperation Organisation (SCO) summit is being held in Bishkek on August 31-September 1, transport and connectivity are again in focus. The summit, which marks the SCO’s 25th anniversary, is expected to address a broad range of economic and regional cooperation priorities, including transport and infrastructure.

In the modern world, a country’s international standing is determined not only by the size of its territory, population and economy. It is determined by its geographical location, ability to influence regional processes, and position along transport and communication routes connecting different economic regions, which are also key factors shaping its strategic importance. At a time when global economic activity is increasingly shifting toward Asia, and new transport and energy routes are gaining geopolitical importance alongside their economic value, the role of countries linking major regions is becoming even more significant.

Azerbaijan is one of the countries with such a strategic position. Located at the crossroads of Europe and Asia and with access to the Caspian Sea, Azerbaijan has developed modern transport infrastructure that enables it to serve as an important link between Central Asia, the South Caucasus, Trkiye and Europe. The country’s growing position in the international system in recent years has also been accompanied by efforts to make more effective use of these advantages.

The main strength of the Shanghai Cooperation Organisation (SCO) lies in its demographic and economic scale. The organisation includes China and India, two of the world’s largest population and consumer markets. Russia, Pakistan and Iran also have large populations and sizeable domestic markets. This represents not only significant consumer potential, but also a vast labour force, industrial capacity and a broad base for future economic growth. The nominal GDP of China, at around $19.5 trillion, India at $3.96 trillion, and Russia at $2.56 trillion, clearly demonstrates the economic scale of the SCO space. The rapid development of Central Asian economies such as Kazakhstan and Uzbekistan further adds to this picture.

For Azerbaijan, this space is important in terms of existing trade ties, as well as opportunities to expand transport, logistics, investment, industrial and energy cooperation. However, Azerbaijan’s main advantage is not its ability to compete with SCO members in terms of economic scale, but rather its capacity to connect this vast economic space with broader Eurasian markets.

The same logic applies to transport. The SCO space covers a large part of the major land transport routes running from east to west and from north to south. Expanding links between China and Central Asia’s production and trade centres, Russia, Iran and India, the Caspian region and Western markets is creating new logistics opportunities.

Azerbaijan occupies a particularly important position on this map. The country lies at the intersection of the East-West and North-South transport routes. The Port of Baku, the Baku-Tbilisi-Kars railway, the Middle Corridor and the North-South International Transport Corridor provide connections in different directions. The first phase of the Port of Baku has an annual cargo handling capacity of 15 million tons and 100,000 TEUs, while plans to increase this capacity to 25 million tons and 500,000 TEUs could further strengthen Azerbaijan’s role in the region’s transport network.

Cooperation within the Shanghai Cooperation Organization (SCO) has significant potential to contribute to the development of transport corridors connecting China with Europe, according to Alper Özel, Chairman of the Executive Board of Trkiye’s International Transporters’ Association (UND).

Commenting on this issue for AzerNEWS, Özel noted that the SCO framework could create additional opportunities for strengthening transport links between China, Central Asia, the Caspian Sea, Azerbaijan, Trkiye and European markets.

“Political dialogue between countries, the facilitation of customs procedures, digitalization and the harmonization of transport infrastructure can contribute to increasing cargo flows,” Özel said.

However, he emphasized that political will alone would not be sufficient to ensure the sustainable growth of the Middle Corridor. “For the corridor to grow in real terms, border crossings must be accelerated, transit costs, which are currently high, must be reduced, and a predictable and regular transport capacity must be established along the entire route,” he stressed.

According to Özel, strengthening transport links between China, Central Asia and the South Caucasus would further increase Azerbaijan’s logistical importance.

He noted that Azerbaijan’s geographical position makes it a critical link connecting the Caspian Sea with Trkiye and European markets. In this regard, the Baku-Alat Port, as well as the country’s railway and road connections, provide important advantages. At the same time, Özel emphasized that Azerbaijan’s role should extend beyond that of a transit country.

“For Azerbaijan to become a genuine regional logistics hub, it is necessary to increase vessel capacity in the Caspian Sea, accelerate port operations, establish regular services and reduce waiting times for cargo,” he noted.

Özel also cautioned that growing demand for freight transportation does not automatically translate into improved corridor performance.

Touching upon cooperation between Azerbaijan and Trkiye, Özel noted that bilateral transport cooperation is one of the determining factors for the competitiveness of the Middle Corridor. He stressed that road, rail and Caspian connections between the two countries should be addressed as an integrated system.

According to Özel, increasing the capacity of the Baku-Tbilisi-Kars railway, digitalizing customs and transit procedures, and putting new connections into operation could significantly strengthen the corridor. However, he pointed out that competition for China-Europe freight is not determined by distance alone.

An expert also added that removing bottlenecks, particularly those associated with the Caspian Sea crossing, is critical for the Middle Corridor to compete with alternative routes, including the Northern Corridor and maritime routes.

Further to comments, an expert, Natig Mammadov, said that Azerbaijan has the potential to become an important logistics bridge between the countries of the Shanghai Cooperation Organisation (SCO) and European markets. According to Mammadov, Azerbaijan is already emerging as one of the important transport and logistics hubs of Eurasia, benefiting from its geographical position at the intersection of major East-West and North-South routes. However, he noted that geography and infrastructure alone are not enough.

Mammadov noted that the SCO economic space includes some of the world’s largest production, energy and consumer markets. China is a major global manufacturing centre, while Kazakhstan and other Central Asian countries have substantial natural resources and growing trade volumes. In this environment, Azerbaijan can serve as a connecting link between the expanding economies of Asia and European markets.

The Baku International Sea Trade Port in Alat is central to this strategy. Cargo arriving from Kazakhstan and other Central Asian countries can cross the Caspian Sea, enter Azerbaijan and continue by rail or road toward Georgia and Trkiye before reaching Europe. But Mammadov stressed that Alat should not be viewed simply as a port.

“Alat has the potential to become not merely a port but a major international logistics centre,” he said, pointing to the need for further development of storage, cargo processing, container handling and other logistics services.

The Caspian Sea remains one of the most difficult sections of the Middle Corridor. Unlike a conventional rail route, cargo travelling through the corridor must change modes of transportation when crossing the Caspian. Goods arriving by rail must be transferred to vessels and then transferred again to rail or road transport after reaching Azerbaijan. Every additional transfer brings extra costs and creates another opportunity for delays.

Mammadov said expanding the maritime side of the corridor should therefore be one of Azerbaijan’s main priorities. This includes increasing the capacity of the Port of Alat, expanding container terminals and storage facilities, and introducing more modern cargo-handling systems. He also highlighted the need to increase the number of ferries and specialised container vessels operating between Kazakhstan and Azerbaijan.

“Modern ports alone are not sufficient if vessels arrive irregularly or cargo has to wait several days for departure,” the expert said.

In his view, more predictable maritime connections, stable schedules and a unified cargo booking system would significantly reduce waiting times and make the route more attractive to Chinese exporters and international logistics companies.

Mammadov believes China is likely to increase its use of the Middle Corridor in the coming years, although he cautioned against expecting it to replace existing China-Europe routes.

“The more realistic scenario is that the Middle Corridor will become an important additional and strategically significant transport route,” he said.

Looking ahead, Mammadov expects several developments to shape the Middle Corridor over the next three to five years. He pointed to an increase in Chinese transit through Central Asia and across the Caspian Sea, a stronger role for Azerbaijan as the principal transit hub on the western shore of the Caspian, and further growth in container transportation along the Alat-Georgia-Trkiye-Europe route.

He also expects the Middle Corridor to gradually move from being viewed as an alternative route to becoming a permanent part of the broader China-Europe logistics network. Still, he stressed that the corridor should not be seen as a replacement for maritime transportation or other established routes. Rather, China is likely to pursue a multi-route strategy, choosing between corridors according to cargo type, price, delivery time and geopolitical conditions. For Azerbaijan, this creates a significant strategic opportunity.

The bigger prize is to turn transit into a full-scale logistics industry – and ultimately transform Azerbaijan from a transit country into one of the key trade and logistics hubs linking the fast-growing economies of Asia with European markets.

Azerbaijan’s women’s national volleyball team will take to the court on September 1 in the round of sixteen of the 2026 CEV Women’s European Volleyball Championship.

The team will face Turkiye with a place in the quarterfinals at stake.

The team, led by head coach Faig Garayev, will face Turkiye in their next match. The game will be played at the Sinan Erdem Sports Hall in Istanbul and is scheduled to start at 20:00 in the evening, Baku time.

Azerbaijan advanced to the knockout stage after finishing third in Group C, which was hosted in Baku.

The national team collected eight points during the group stage to secure its place in the playoffs.

The meeting with Trkiye now presents Azerbaijan with a fresh challenge as the team looks to continue its European Championship campaign and move into the quarterfinals.

The 2026 CEV Women’s European Volleyball Championship is being jointly hosted by Azerbaijan, Turkiye, Czechia and Sweden from August 21 to September 6.

Group C matches were played in Azerbaijan, with the national teams of Azerbaijan, Portugal, the Netherlands, Belgium, Romania and Spain competing in the group.

Baku hosted the Group C matches at the National Gymnastics Arena from August 21 to 28.

Hyundai Motor announced on Tuesday that its global sales fell 14.2% in August compared with the same month last year, reaching 288,574 vehicles.

The decline was particularly severe in South Korea, where domestic sales plunged 41.1% to 34,333 units, down from 58,330 vehicles in August of the previous year.

A company official attributed the sharp drop to production disruptions caused by labor strikes, as well as delays in purchases by customers who are waiting for the launch of new models. These factors affected both production and overall demand during the month.

By model, the Hyundai Grandeur was the company’s best-selling vehicle in the domestic market, with 5,931 units sold. It was followed by the Santa Fe SUV, which recorded sales of 3,596 units.

Hyundai’s premium Genesis brand sold a combined 4,545 vehicles during the month.

Despite the weak August results, Hyundai’s performance over the first eight months of the year provides a broader picture of the company’s sales trend. Cumulative global sales from January through August declined by 6.0% year over year.

The latest figures highlight the challenges facing major automakers as they deal with production disruptions, changing consumer demand and increasingly competitive global markets.

An interesting factor is Hyundai’s growing focus on new models and electrified vehicles. The company is investing heavily in electric and hybrid vehicles as competition intensifies, particularly in major markets such as the United States, Europe and China. New model launches could therefore play an important role in helping Hyundai recover sales in the coming months.

For Hyundai, the key challenge will be turning its upcoming model launches into stronger demand while keeping production stable and avoiding further disruptions.

President of the Republic of Azerbaijan Ilham Aliyev has sent a congratulatory letter to Peter Pellegrini, President of the Slovak Republic.

According to AzerNEWS, the letter reads:

“Dear Mr. President,

On my own behalf and on behalf of the people of Azerbaijan, I extend my sincere congratulations to you and, through you, to your entire people on the occasion of the national holiday of the Slovak Republic – Constitution Day.

The relations between Azerbaijan and Slovakia, based on mutual respect, trust, and constructive dialogue, are gratifying. In recent years, the development of political dialogue between our countries, the increase in high-level visits, and the expansion of the scope of our cooperation have further enriched the content of our bilateral relations.

The dynamics of cooperation between our countries in the economic, trade, energy, and military-technical fields are also gratifying.

I fondly recall your visit to Azerbaijan in July, including our joint visit to the Garabagh region. I highly appreciate Slovakia’s participation in the restoration of our liberated territories and regard this as a clear example of our friendship and strategic partnership.

I am confident that the traditional ties of friendship between Azerbaijan and Slovakia, as well as our interaction on both bilateral and multilateral levels, will continue to expand through our joint efforts in line with the interests of our peoples, and that our strategic partnership will be further strengthened.

On this pleasant day, I wish you robust health, happiness, and success in your endeavors, and the friendly people of Slovakia peace and prosperity.”

A dissident group from Colombia’s former Revolutionary Armed Forces of Colombia (FARC), the “Estado Mayor Central” (EMC), has claimed responsibility for the abduction of José Olger Melo Charry, a Colombian corporal serving in the French Foreign Legion who has been missing since August 6.

According to the EMC, the soldier was detained in the Cumbitara area of Narino department and is in good health. The group referred to him as a “prisoner of war” and warned that any potential military operation could put his life at risk.

Melo Charry has served in the French Army’s Foreign Legion for nearly four years. He disappeared while on leave in Colombia.

France’s Ministry of Defence said it was closely monitoring the situation, while Colombian authorities have launched an investigation.

It was also noted that a woman who was with the soldier was also taken by armed men but was released several hours later.

The French Foreign Legion is an elite branch of the French Army whose ranks are made up largely of foreign volunteers from dozens of countries. Its soldiers can be deployed alongside other French forces on operations overseas.

The SCO Plus format meeting has commenced in Bishkek, the capital of Kyrgyzstan.

President of the Republic of Azerbaijan Ilham Aliyev arrived at the Yrys Ordo Congress Hall in Bishkek to attend the meeting.

President of the Kyrgyz Republic Sadyr Zhaparov welcomed President Ilham Aliyev and other heads of state and government.

The participants of the SCO Plus format meeting then posed for a family photo.

President Ilham Aliyev addressed the meeting.

Speech by President Ilham Aliyev

– Dear Sadyr Nurgozhoevich,

Distinguished heads of state,

Ladies and gentlemen,

First of all, I would like to express my gratitude to the President of the Kyrgyz Republic for the invitation and hospitality.

I am pleased to visit once again brotherly Kyrgyzstan. During my state visit a month ago, the Treaty on Allied Relations was signed. This historic document has elevated relations between Azerbaijan and Kyrgyzstan to the highest level.

I would like to take this opportunity to congratulate the President and the people of Kyrgyzstan on the achievements made in the country’s socio-economic development and the strengthening of its standing in the international arena. The election of Kyrgyzstan as a non-permanent member of the UN Security Council for 2027-2028 demonstrates the support of the international community for Kyrgyzstan’s policies.

A little over a year ago, Azerbaijan and Armenia initialed the text of the peace agreement, putting an end to a 30-year conflict. Thus, the South Caucasus region, which was a long-standing conflict zone, is becoming a zone of peace.

Four resolutions adopted by the UN Security Council in 1993 were implemented three years ago, 30 years later. Azerbaijan is already supplying petroleum products to Armenia and providing transit for third-country cargo. Together with Armenia, we are working to increase the volume of mutual trade, expand the range of goods, and create new overland transport links. However, unfortunately, the UN played no role in the implementation of these resolutions. Azerbaijan entirely restored its sovereignty and territorial integrity on its own. The development of appropriate mechanisms is required for the swift implementation of UN Security Council resolutions. If implemented, this would serve to enhance the UN’s prestige and the organization’s role in conflict resolution. Having led the Non-Aligned Movement for four years until recently, Azerbaijan will continue to contribute to strengthening the principles of multilateralism in international affairs.

Thank you for your attention.

President of Kyrgyzstan Sadyr Zhaparov: Thank you very much, dear Ilham Heydarovich, for such a comprehensive speech. It is precisely such a broad dialogue that is essential for the formation of a fair, multipolar world.

Romania is set to lose at least pound 770 million in European Union funding after the country’s main political parties failed to reach an agreement on a public-sector salary reform required under its post-pandemic recovery plan.

The parties missed the August 31 deadline for adopting a new public-sector salary law, a key reform included in Romania’s National Recovery and Resilience Plan (NRRP).

According to EU sources, around pound 770 million could be deducted from the pound 8.44 billion still due to Romania under the pound 21.41 billion recovery programme. The exact amount will be determined by the European Commission when it assesses Romania’s final payment request, which must be submitted by the end of September.

Romanian President Nicu?or Dan said last week that the legislation was technically close to completion and could still be adopted by the end of the year. He described the reform as a ‘complicated topic with major social and economic implications’ that had been negotiated under considerable time pressure.

The public-sector salary reform is reportedly the principal reason behind the potential loss of EU funds, although several smaller targets, including measures related to decarbonisation, have also not been completed.

The proposed legislation has faced strong opposition from Romanian trade unions, which argue that it could reduce the salaries of some categories of public employees and that planned inflation-linked adjustments would not adequately compensate workers.

The dispute has already prompted street protests. Several trade union federations demonstrated outside the Labour Ministry on August 25, calling for higher minimum wages and the restoration of collective bargaining.

The missed deadline has also triggered a political blame game among the pro-European parties that formed Romania’s previous governing coalition under centre-right Prime Minister Ilie Bolojan.

The dispute comes as Bucharest faces increasing pressure to complete the remaining NRRP reforms before the EU funding window closes, with the country having already received only part of the substantial financing allocated under the post-pandemic recovery programme.

“I highly appreciate Slovakia’s participation in the restoration of our liberated territories and regard this as a clear example of our friendship and strategic partnership,” President of Azerbaijan Ilham Aliyev said in a congratulatory letter addressed to President of the Slovak Republic Peter Pellegrini on the occasion of his country’s Constitution Day.

The head of state expressed confidence that the traditional ties of friendship between Azerbaijan and Slovakia, as well as interaction at both bilateral and multilateral levels, will continue to expand through their joint efforts in line with the interests of the peoples of the two countries, and that their strategic partnership will be further strengthened.