Category: Azer News

Azerbaijan is entering an important stage of economic transformation. For decades, the country’s economic development was closely associated with its oil and gas resources, which played a decisive role in building national wealth, modernizing infrastructure, and strengthening its position in regional and global energy markets. However, the economic priorities of Azerbaijan are now evolving. The country is moving toward a more diversified economic structure, where energy remains a strategic advantage but is complemented by new growth sectors such as renewable energy, logistics, technology, agriculture, tourism, and manufacturing.

Recent economic indicators demonstrate the strength and resilience of the Azerbaijani economy. According to official economic data, total investment in Azerbaijan’s economy during January-June 2026 reached 9.295 billion manats ($5.47 billion), representing a 13.8% increase compared with the same period of 2025. This growth demonstrates continued confidence in the country’s economic potential and highlights Azerbaijan’s ability to attract capital even in a competitive global investment environment.

One of the most important trends is the country’s ongoing economic diversification. While oil and gas remain important pillars of Azerbaijan’s economy, the government has increasingly focused on developing non-energy sectors. During the first half of 2026, investments in the non-oil sector amounted to 6.132 billion manats (approximately US$3.61 billion). Although this represented a temporary decline of 5.5% compared with the previous year, the non-oil sector remains the main engine of future economic growth.

For international investors, this transition creates significant opportunities. Countries that successfully diversify their economies often become more resilient, competitive, and attractive destinations for foreign capital. Azerbaijan’s strategy is not simply to increase production but to build a broader economic ecosystem where international companies can participate in new industries.

A key advantage of Azerbaijan is its strong financial position. The country has accumulated substantial strategic reserves, which reached 85.769 billion US dollars by July 2026. These reserves increased by 10.4% compared with the previous year and provide Azerbaijan with a powerful financial foundation.

Large foreign currency reserves reduce economic risks, support currency stability, and allow the government to continue investing in infrastructure and development projects. For investors, macroeconomic stability is one of the most important factors when choosing a destination. Countries with strong reserves and responsible fiscal management are better positioned to withstand global crises and protect long-term investments.

At the 5th Tashkent International Investment Forum, Azerbaijani Prime Minister Ali Asadov stated that more than US$350 billion has been invested in the country’s economy over the past two decades, with approximately half of that amount coming from foreign investors.

Speaking at the forum, Ali Asadov highlighted Azerbaijan’s long-term commitment to creating a favorable investment environment. “In the context of today’s discussions, I would like to share Azerbaijan’s experience in attracting investment, developing the private sector, and improving the investment climate,” he said.

Ali Asadov also emphasized that Azerbaijan has consistently pursued a policy of economic openness while actively encouraging entrepreneurship and private sector development, positioning the country as an attractive destination for both domestic and international investment.

Azerbaijan’s economic future depends increasingly on sectors beyond hydrocarbons. The country has significant potential in renewable energy, digital transformation, transport infrastructure, agriculture, and industrial production.

Investing in Azerbaijan’s energy transition also provides access to a country with decades of experience in energy production, established infrastructure, and strong regional partnerships.

Following the restoration of its territorial integrity, Azerbaijan is executing a massive reconstruction program in the Karabakh and East Zangezur regions. Often dubbed the “Great Return,” the government has allocated billions of dollars in state funds to establish “smart cities” and green energy zones.

For foreign investors, Karabakh offers lucrative public-private partnership (PPP) and concession opportunities in infrastructure development, mineral mining, sustainable agriculture, and eco-tourism. Bilateral partnerships with companies from Trkiye, Italy and Hungary are already actively shaping the region’s economic landscape.

Azerbaijan’s economic indicators for 2026 demonstrate a country with strong financial foundations, growing investment activity, and a clear vision for economic transformation. Rising investment volumes, large strategic reserves, declining public debt, and continued GDP growth create a favorable environment for international investors.

The future of global investment will increasingly depend on countries that combine resources, strategic location, stability, and economic ambition. Azerbaijan possesses all of these characteristics.

Unfortunately, not every diplomatic initiative survives contact with the diplomacy that follows it. It sounds so eye-catching and laudable in a way; it kind of feels too good to be true. Among the more telling moments at the Shusha Global Media Forum this week was the question nobody expected to produce a significant answer. The “3+3” Format – three South Caucasus states plus Trkiye, Russia and Iran, conceived in the immediate aftermath of the 2020 war as a framework for regional self-governance, has gathered “dust on the shelf” of post-conflict ideas for the better part of four years, overtaken by bilateral deals, American brokerage and the sheer pace of events on the ground.

Azerbaijan’s own proposal, floated in late 2021 as a vehicle for regional countries to manage regional affairs without external referees and barely convened. When a journalist in Shusha this week asked President Ilham Aliyev whether it was still alive, the question itself carried the answer. “I think no one has returned to this topic for a long time,” Aliyev said, with the equanimity of a man who has moved on.

The South Caucasus has reached the point where it is in a period of multipolar competition; everyone from Washington to Beijing to Riyadh has a stake in its future, right when its own leaders are making the most important decisions for it. This is not chaos, although there are aspects of this as well. Instead, it is flux, calculated and quick, in a place that has been in the same unhappy state for thirty years.

We all know how that ice broke thanks to Baku and Yerevan’s reasoning. White House meeting between Trump, Aliyev, and Pashinyan was the trigger but not the cause of what is now unfolding. The cause was the accumulated exhaustion of all parties with a frozen conflict that was economically ruinous and strategically outdated.

Three-country problem?

Well, the South Caucasus is more than one story. It is three separate stories with a growing degree of complexity in their interactions, and the key to grasping the reality of today’s South Caucasus is in recognizing that the three trends are diverging, not coming together. Armenia is moving west, slowly but surely, and always under the shadow of Russian influence. Azerbaijan is moving in no particular direction, since it doesn’t have to: geography and infrastructure mean that it is of equal importance for Russia, Europe, China, Trkiye, and Central Asia. And Georgia is changing faster than it can adapt, perhaps at risk not of exclusion by force, but of marginalisation by design. Each trajectory carries its own specific risks. When these risks are viewed together, they point to the same conclusion: the current strategic advantage is time-sensitive.

Azerbaijan’s vision of what the region’s architecture should look like was stated with unusual candour by Aliyev at the Shusha Global Media Forum this week. Asked whether the long-dormant “3+3” format was still alive, he was characteristically blunt: “No, no. We initiated it as a post-conflict platform to achieve full settlement and the complete restoration of our sovereignty. At the time we initiated it, part of Garabagh was still under occupation.”

The format has since been overtaken by events, he argued, and any revival must look fundamentally different: a full six-sided, or for now, five-sided, given Georgia’s absence, mechanism with an agenda covering energy, transport and security across the entire region, not merely a bilateral Azerbaijani-Armenian issue dressed up in multilateral clothing. It is the implicit warning in the response that carries the punch here: “It should not become another Minsk Group.” That reference was pointed. The OSCE Minsk Group spent nearly three decades mediating the Garabagh conflict without producing a resolution; in Baku’s reading, the format became a mechanism for managing a conflict rather than ending one, and for keeping external powers in the room long after their presence served any useful purpose. The message to Moscow, which views the 3+3 format as an opportunity to reassert a convening role in a region where it is losing one, was unmistakable.

The window of opportunity

The South Caucasus’s new reality is the product of choices – by Aliyev, Pashinyan, and to a significant extent Trump, that could have gone differently and could still be reversed. The constitutional gap in Armenia, the Russian leverage instruments, and the Georgian political paralysis have been resolved. On top of that, the window created by simultaneous Russian and Iranian disruption to global trade routes will not stay open indefinitely as well.

What would squander the opportunity is familiar from every previous attempt at South Caucasus peace: outside interference that generates domestic political crises before the peace process can establish itself; impatient institutions in Brussels and Washington that dictate terms that the governments simply cannot fulfill without forfeiting the domestic support necessary for fulfillment; and, finally, time itself, which gives the spoilers, the Russian corporate structure, the lobbies of the diasporas, the opposition factions, a chance to organize against the process while it is too young to be consolidated.

The peace agreement has been initialled. The TRIPP corridor is being planned. The new order in the South Caucasus is not an idealized diplomatic ambition but a tangible phenomenon, manifested through the trucks full of oil traveling from Azerbaijan to Armenia for the first time in three decades, including bilateral diplomacy that is increasingly driven by the region’s own governments rather than outside powers. There is a saying in the history of this region that things happen very slowly and then very quickly. It seems that the latter has started. What remains to be seen is whether it ends.

Chinese President Xi Jinping announced on Friday that China will offer 5,000 AI-related training and seminar opportunities to developing countries over the next five years, AzerNEWS reports, citing Xinhua.

Speaking at the opening ceremony of the 2026 World AI Conference and High-Level Meeting on Global AI Governance in Shanghai, Xi said the initiative aims to strengthen international cooperation in artificial intelligence.

He also revealed plans to establish international AI application cooperation centers in partnership with ASEAN, the League of Arab States, the African Union, the Community of Latin American and Caribbean States (CELAC), the Shanghai Cooperation Organization (SCO), and BRICS.

In addition, Xi said China will support 30 countries in using the AI-powered MAZU meteorological early warning system to improve disaster preparedness and help protect lives and property.

China will expand AI cooperation with the Association of Southeast Asian Nations, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization and the BRICS countries, Xi said. He promised to provide access for 30 countries to a Chinese-developed AI meteorological system that provides early warning systems.

A day earlier, 29 countries including Pakistan, Russia and Kazakhstan signed an agreement with China to establish a World Artificial Intelligence Cooperation Organization. State media described it as an intergovernmental organization headquartered in Shanghai promoting global AI governance.

Pakistan has welcomed the creation of the World Organization for Cooperation in Artificial Intelligence (WAICO), calling the initiative an important step toward global cooperation in the field of advanced technologies, AzerNEWS reports.

Deputy Prime Minister and Foreign Minister of Pakistan Mohammad Ishaq Dar described the establishment of WAICO as an ‘excellent initiative’ during a meeting with Chinese Foreign Minister Wang Yi in Shanghai ahead of the opening of the World Artificial Intelligence Conference (WAIC).

A Pakistani delegation arrived in Shanghai to participate in the conference and sign the agreement on the establishment of WAICO. Ishaq Dar emphasized that Pakistan is proud to become one of the founding members of the organization and expressed hope that the initiative will further strengthen cooperation with China and other countries in artificial intelligence research and development.

Wang Yi noted that Pakistan’s participation in WAICO corresponds to the long-term interests of the country and its people. According to him, China is actively contributing to the creation of the organization by promoting international dialogue, practical cooperation, and the development of technological capabilities. One of WAICO’s key objectives will be to ensure that all countries, especially developing nations of the Global South, have equal opportunities to benefit from advances in artificial intelligence.

The World Artificial Intelligence Conference (WAIC) has been held annually in China since 2018 and has become one of the largest global platforms for discussing AI development. This year’s event is being held under the theme ‘Partnership in Artificial Intelligence for a Brighter Future’ and has brought together more than 1,400 participants from different countries.

The program includes over 140 forums and discussions taking place from July 17 to 20. In addition, the conference features a large-scale exhibition covering more than 100,000 square meters, where around 3,000 AI-related products and technologies from approximately 1,100 companies are being presented.

Experts note that the creation of WAICO reflects the growing importance of international cooperation in artificial intelligence, as countries seek common approaches to AI development, regulation, and the responsible use of emerging technologies.

President Donald Trump’s longtime teleprompter operator has been placed on unpaid administrative leave after federal investigators alleged he used advance knowledge of the president’s speeches to profit from prediction market bets, AzerNEWS reports via ABC News.

Gabriel Perez, who has operated Trump’s teleprompter since 2016, is under investigation by the U.S. Commodity Futures Trading Commission (CFTC) over allegations that he earned more than $100,000 by placing bets on the prediction market platform Kalshi.

Investigators believe Perez used inside knowledge of the content of more than a dozen presidential speeches to place wagers on Kalshi’s “Mentions” market, where users bet on whether specific words, phrases or topics will be mentioned during public addresses.

Sources familiar with the investigation told ABC News that Perez is currently in discussions with federal regulators to settle the allegations.

Kalshi said its internal surveillance system detected the suspicious trading activity and reported it to the CFTC.

“Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” Kalshi’s head of enforcement, Bobby DeNault, said in a statement.

Following the report, White House Press Secretary Karoline Leavitt confirmed that Perez had been placed on unpaid administrative leave.

Leavitt said she discussed the matter with President Trump, who described the allegations as “a disgrace” and personally decided to place Perez on leave.

She added that she was not aware of any other White House staff members who had engaged in similar trading activity.

“The White House has strict ethics guidelines that we expect all staffers and officials to follow,” White House spokesperson Davis Ingle said in a statement provided to ABC News.

The CFTC has not publicly commented on the ongoing investigation.

Azerbaijani Foreign Minister Jeyhun Bayramov and Russian Foreign Minister Sergey Lavrov are holding talks at the Reception House of the Russian Foreign Ministry in Moscow, AzerNEWS reports.

The meeting is taking place as part of Foreign Minister Bayramov’s official visit to Russia.

The ministers are expected to discuss the current state and future prospects of Azerbaijan-Russia relations, as well as a broad range of bilateral cooperation issues. They will also exchange views on key regional and international developments that feature prominently on the current diplomatic agenda.

Following the talks, Bayramov and Lavrov are scheduled to hold a joint press conference to outline the outcomes of their discussions.

The restrictions will apply to wheat imports from both third countries and member states of the Eurasian Economic Union (EAEU), AzerNEWS reports.

However, several exceptions have been ?????????????. Wheat may still be imported by rail for licensed poultry farms, grain processing enterprises, licensed grain elevators, and JSC National Company Food Contract Corporation.

At the same time, wheat imported under these exemptions must be used exclusively for its intended purpose. It cannot be sold on Kazakhstan’s domestic market or re-exported to other countries.

The restrictions also do not apply to rail transit through Kazakhstan or to shipments moving between EAEU member states.

The measure is aimed at supporting Kazakhstan’s domestic grain market, protecting local producers, and maintaining stable prices during the new marketing season. Market participants will be closely monitoring how these temporary restrictions affect regional grain trade and export logistics over the coming months.

Recalling her participation in COP29, Brosnan highlighted that the event successfully hosted by Azerbaijan yielded good results.

Recalling her participation in COP29, Brosnan highlighted that the event successfully hosted by Azerbaijan yielded good results.

In response, the head of state highlighted that Azerbaijan had put forward several key initiatives to support the global green agenda within the framework of COP29, touching upon the projects implemented by the country in this direction.

The meeting concluded with an exchange of views on cooperation between Azerbaijan and Ireland in the sectors of education and high technologies.

The global economy of the mid-2020s has been marked by persistent volatility, geopolitical fragmentation, and shifting trade corridors. Yet, against this turbulent backdrop, Azerbaijan’s macroeconomic indicators for the first half of 2026 paint a picture of remarkable domestic stability. Recent official data released by the State Customs Committee reveals a striking development: Azerbaijan’s foreign trade surplus has surged nearly sixfold year-on-year, reaching $7.979 billion. Parallel to this commercial windfall, the Central Bank of Azerbaijan (CBA) has expanded its foreign exchange reserves from $11.1 billion to an impressive $13.1 billion. Together, these figures underscore a deliberate, highly calculated strategy of monetary insulation that virtually guarantees the absolute stability of the Azerbaijani manat (AZN) at its pegged rate of 1.70 to the US dollar for the foreseeable future.

To appreciate the scale of this economic windfall, one must look at the mechanics of the trade balance. During the first six months of 2026, Azerbaijan’s total trade turnover hovered around $24.661 million-a marginal 1.1% increase compared to the same period last year. However, the internal dynamics of this turnover shifted dramatically. Exports jumped by 26.7% to $16.320 billion, propelled heavily by a nearly threefold increase in revenues from refined petroleum products and steady natural gas deliveries to European markets. Concurrently, imports contracted sharply by 27.6%, dropping to $8.341 billion. This simultaneous expansion of outbound shipments and contraction of inbound purchases widened the trade gap in Azerbaijan’s favor, generating the historic $7.979 billion surplus.

In a standard floating exchange rate framework, such a massive trade surplus would trigger a rapid appreciation of the local currency. As foreign buyers purchase manats to settle energy contracts, the demand for AZN would skyrocket. However, Azerbaijan operates under a de facto fixed exchange rate regime, anchoring the manat firmly at 1.70 per dollar. To maintain this peg and prevent the domestic currency from becoming overvalued-which would hurt the competitiveness of the non-oil export sector-the Central Bank of Azerbaijan must step in as a market stabilizer.

The CBA does this through currency purchase interventions. By actively buying excess US dollars flooding the domestic market from energy exporters, the central bank injects manats into the system, neutralizing upward pressure on the currency. The direct byproduct of this mechanism is the rapid accumulation of national reserves. The expansion of the CBA’s foreign exchange reserves by $2 billion in a relatively short window to a historic peak of $13.1 billion is tangible proof of this sterilization policy.

For the average citizen and the foreign investor alike, this reserve accumulation is far more than a dry accounting milestone; it is an impenetrable monetary shield. International financial benchmarks dictate that a developing nation’s foreign reserves should ideally cover at least three months of imports. With Azerbaijan’s monthly import bill averaging roughly $1.4 billion, the CBA’s $13.1 billion vault holds enough liquidity to cover over nine months of imports. This represents a safety cushion three times larger than the recommended international baseline. Even in the highly improbable event of a sudden, catastrophic collapse in oil prices, the CBA possesses the unilateral firepower to defend the peg for a prolonged period without risking depletion.

Furthermore, this financial fortress dampens any speculative tendencies within the local banking sector. During previous periods of global uncertainty, dollarization-where citizens and corporations convert assets to USD out of fear of devaluation-posed a threat to liquidity. Today, because the CBA’s defensive capacity is highly visible and backed by hard cash, public confidence in the manat remains exceptionally high.

Ultimately, Azerbaijan’s current economic policy reflects a prioritized trade-off. By utilizing its surging trade surplus to build a massive sovereign reserve buffer, Baku has chosen total exchange rate predictability over exchange rate flexibility. In an era where sudden currency devaluations can instantly destabilize emerging markets, the $13.1 billion fortress at the Central Bank guarantees that the manat will remain an island of absolute calm. For the remainder of 2026, the 1.70 peg is not merely a policy target; it is an unassailable financial reality.

U.S. President Donald Trump has shared on his Truth Social platform a Breitbart News article featuring remarks by Azerbaijani President Ilham Aliyev delivered during the 4th Shusha Global Media Forum, AzerNEWS reports.

The article highlighted President Aliyev’s assessment of Trump’s role in advancing peace efforts between Azerbaijan and Armenia.

Responding to a question from Breitbart News about how Trump’s approach differed from the policies of previous administrations in the process of reaching the historic peace agreement between Azerbaijan and Armenia, brokered by the United States and signed at the White House in August last year, the President said that the U.S. leader’s success was driven by a fundamentally different approach to resolving protracted conflicts.

According to the President Ilham Aliyev, previous administrations pursued a policy for nearly three decades that effectively resulted in the freezing of the Azerbaijan-Armenia conflict, whereas Trump approached its resolution from a completely different perspective.

Donald Trump reposted the Breitbart News article on his Truth Social account, making the publication available to his millions of followers.

Earlier, speaking at the 4th Shusha Global Media Forum, President Aliyev praised the U.S. president’s contribution to efforts aimed at achieving historic understandings between Azerbaijan and Armenia, emphasizing the importance of dialogue and diplomacy in advancing regional peace.