Category: Azer News

Few bilateral relationships in today’s geopolitically fractured landscape are as quietly effective as that between Azerbaijan and Israel. Built on mutual trust, strategic alignment and pragmatic cooperation, the partnership has evolved well beyond diplomacy into a model of how political confidence can translate into economic dynamism. The recent meeting between Azerbaijan’s Minister of Economy, Mikayil Jabbarov, and Israel’s Foreign Minister, Gideon Sa’ar, followed by the Azerbaijan-Israel Business Forum, offered a timely illustration of how this relationship is entering a more mature, investment-driven phase.

The discussions in Baku, reinforced by the presidents’ meeting on the margins of the World Economic Forum in Davos, underline a simple reality: Azerbaijan and Israel no longer view each other merely as partners of convenience, but as long-term economic allies. The Business Forum, which gathered companies and institutions across sectors ranging from agriculture and pharmaceuticals to cybersecurity, logistics and water management, was not a ceremonial exercise. It was a practical step towards deepening a partnership that is already delivering tangible results.

Looking from this perspective, Israel’s contribution to Azerbaijan’s economic modernisation is often understated. For example, Azerbaijan’s oil exports to Israel to date and SOCAR’s recent participation in the TAMAR project in the Eastern Mediterranean can be noted as one of Azerbaijan’s important successes. Here, Azeraijan’s growing export volumes of oil in 2024 are significant. Looking through the figures for January-September 2024, it shows that Azerbaijan exported 2.37 million tons of crude oil to Israel. The value of these exports was over $1.46 billion, and this represented about 13.5 % of Azerbaijan’s total crude exports in the period. Besides, Azerbaijan’s investment in Israel’s Tamar gas field, which means also about 10 % stake in Tamar, opens new horizons for long-term revenue potential as well as giving access to the Eastern Mediterranean. Reports estimate significant returns from the Tamar stake, with around $715 million in revenue in 2024 and projections exceeding $1.2 billion for 2025-2026. So, this move shifts Azerbaijan’s energy engagement with Israel from pure commodity supply to asset ownership and joint development, laying the foundations for deeper long-term relations. In short, the Tamar stake represents a qualitative shift from selling resources to owning production shares, which can yield long-term dividends and geopolitical leverage. In simple terms, Azerbaijan expanded its oil export footprint to Israel, with Israel consistently among the key destinations for crude supply through 2024.

While energy cooperation has historically dominated headlines, Israel’s real impact lies in knowledge transfer, technology and innovation-driven sectors. Israeli expertise in high-value agriculture, advanced irrigation systems, water management and agrotechnology aligns closely with Azerbaijan’s ambition to boost productivity, sustainability and export potential in its non-oil economy.

In pharmaceuticals and healthcare, Israel’s globally competitive ecosystem, which is built on research, innovation and efficient regulation, offers Azerbaijan a blueprint for scaling domestic production, improving supply chains and reducing external dependency. As Azerbaijan works to strengthen its pharmaceutical manufacturing base and health security, Israeli know-how provides both credibility and acceleration.

Equally important is Israel’s experience in cybersecurity, fintech and high technologies. As Azerbaijan positions itself as a regional logistics, digital and financial hub connecting Europe, Central Asia, and the Middle East, cooperation with Israel adds sophistication and resilience to this ambition. Israeli firms bring not only technology, but also global networks, compliance standards and an innovation mindset that strengthens Azerbaijan’s overall investment profile.

Therefore, this cooperation is far from one-sided. For Israel, Azerbaijan represents a stable, trustworthy, strategically located and business-friendly partner in a complex region. For this reason, a brief excursion into history is sufficient to show the true reasons for the emergence of strong trust and confidence in cooperation between the two states. It can be particularly noted that Israel has a special role in expanding Azerbaijan’s capabilities in the military field. After the collapse of the Soviet Union and the outbreak of the First Karabakh War, Azerbaijan faced a de facto international arms embargo. While there was no single, universal UN ban, several factors combined to restrict Baku’s access to weapons severely. For instance, OSCE-led diplomacy aimed at freezing the conflict, Russia’s dominant role as Armenia’s main arms supplier, Western reluctance to arm a newly independent state in an active conflict zone, export-control regimes and third-party component restrictions, and many such nuances were real but painful obstructions. This meant that even when countries were politically willing, arms sales often failed due to technical or legal issues. Israel’s ability to supply arms – initially modestly, later extensively – rested on three decisive advantages: export autonomy, strategic convergence and quiet, non-politicised cooperation. Generally, these experiences shaped Azerbaijan’s long-term defence and foreign-policy thinking, pushing it toward diversification over dependence, a preference for partners with full export control over their systems, scepticism toward suppliers constrained by third-party approvals, and a gradual emphasis on domestic defence production in later years. In many ways, the constraints of the 1990s explain how Azerbaijan’s later deep defence ties were formed with Israel.

Today, Azerbaijan’s diversified economy, improving legal framework and generous investment incentives – highlighted by Minister Jabbarov at the Forum – make it an attractive destination for Israeli capital seeking new markets and production bases.

Azerbaijan also offers Israel access to broader regional markets, particularly through its transport corridors, logistics infrastructure and growing role in Eurasian connectivity. Israeli companies operating in Azerbaijan are not merely investing in a single market; they are positioning themselves within a wider economic geography.

The signing of a Memorandum of Understanding between the National Confederation of Entrepreneurs (Employers) Organisations of Azerbaijan and the Manufacturers Association of Israel further institutionalises this synergy. It signals an understanding that sustained cooperation requires structured dialogue between business communities, not just government-to-government engagement.

Moreover, what sets the Azerbaijan-Israel Business Forum apart is its focus on implementation. The B2B and B2G meetings reflected a shift from conceptual cooperation to deal-making, project financing and regulatory alignment. As Israeli Foreign Minister Gideon Sa’ar rightly noted, enhancing direct contacts between business circles is essential for turning political goodwill into economic output.

The emphasis on expanding the legal framework, increasing trade turnover and accelerating joint investment projects suggests that both sides recognise the need for predictability and scale. Trust may open doors, but legal certainty and commercial logic keep them open.

The Business Forum was therefore more than an event. It was a statement of intent that Azerbaijan and Israel are ready to elevate their cooperation from successful collaboration to shared prosperity.

Armenia is considering the possibility of importing gas through Azerbaijan as it faces growing difficulties with its traditional supply routes, Azernews reports via Sputnik-Armenia.

According to the report, Yerevan has acknowledged serious logistical challenges linked to supply corridors passing through Iran and Georgia. Internal instability in Iran has disrupted transport and customs operations, while adverse weather conditions have repeatedly forced the closure of the Military-Georgian Highway, a critical route linking Armenia to external markets.

Against this backdrop, Armenian authorities are exploring alternative transit options, including a railway line that passes through the territory of Azerbaijan. After previously launching grain and oil product shipments via this route, Armenia is now also examining the feasibility of importing liquefied natural gas (LNG) through Azerbaijan.

The Armenian Ministry of Economy confirmed that the route through Azerbaijan is being considered as an alternative to existing supply channels via the Upper Lars border crossing on the Georgian-Russian border and Iran.

Armenian experts cited by Sputnik-Armenia argue that economic relations in the South Caucasus should be grounded in cooperation rather than isolation. They note that Armenia’s key priority is the restoration and development of its industrial base, along with deeper integration into the region’s broader economic and production framework. Without this, they warn, Armenia’s economy could become increasingly vulnerable to external shocks and global crises.

Within the framework of the peace agenda, Armenia has already begun using Azerbaijan as a transit route. Since November last year, wheat from Russia and Kazakhstan has been transported to Armenia via Azerbaijani territory, and in December, exports of oil products from Azerbaijan to Armenia were launched.

Background on Azerbaijan-Armenia rapprochement:

Relations between Azerbaijan and Armenia have shifted dramatically from decades of conflict to active cooperation and peacebuilding. After nearly four decades of hostilities, including wars over the Karabakh region, both countries agreed on the text of a peace treaty draft in March 2025, a key step toward ending the conflict, though some legal and constitutional issues remain before final signing.

In August 2025, Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan initialled a peace agreement and joint declaration in Washington under US auspices, a milestone widely welcomed by international partners. This was reinforced by the ‘Trump Route for International Peace and Prosperity’, a planned transit corridor linking Azerbaijan with its Nakhchivan exclave via Armenia, aimed at bolstering connectivity and economic ties.

Concrete signs of improving ties include lifting restrictions on cargo transit to Armenia, allowing shipments like Kazakh grain to travel through Azerbaijan to Armenia for the first time since the Soviet era.

These developments have helped create new economic opportunities between Baku and Yerevan, with fuel exports and renewed trade flows reflecting a broader shift from conflict toward cooperation in the South Caucasus.

Shares of Puma SE surged more than 16% on Tuesday after China’s sportswear giant Anta Sports Products Limited announced plans to acquire a 29.06% stake in the German company from the Pinault family for pound 1.5 billion, Azernews reports, citing foreign media.

Once the deal is completed, Anta Sports will become Puma’s largest shareholder. As part of the transaction, the Chinese firm will purchase 43.01 million shares at pound 35 per share in cash, representing a significant premium to Puma’s previous closing price of pound 21.63. The deal is expected to be finalized by the end of 2026, subject to regulatory approvals.

Following the announcement, Puma shares climbed 16.27% by 9:22 a.m. CET, trading at around pound 25.15 per share.

Market analysts view the move as a strategic expansion by Anta Sports into the European premium sportswear segment, potentially strengthening Puma’s presence in the Asian market, where Anta has extensive retail and distribution networks. The partnership could also open the door to joint product development and deeper supply-chain integration, helping Puma compete more effectively with global rivals such as Nike and Adidas.

Interestingly, the deal highlights a broader trend of Chinese companies increasing their stakes in established European brands, seeking global recognition and technological expertise, while European firms gain access to fast-growing Asian consumer markets.

The Azerbaijan State Orchestra of Folk Instruments has delighted the audience with a fascinating concert at the International Mugham Center, Azernews reports.

The wonderful musical evening pleased the audience with musical compositions that combined the richness of national tradition with a contemporary sound.

Particular attention was drawn to new arrangements created especially for this evening.

The concert was conducted by the orchestra’s artistic director and chief conductor, Mustafa Ashurov, a recipient of the Presidential Award.

The Azerbaijan State Orchestra of Folk Instruments is widely known for its mastery in performing national musical works, and each piece in the program was marked by virtuosity, emotional depth, and a high level of artistic refinement.

The origins of this orchestra trace back to May 1, 1931, when the founder of Azerbaijan’s classical music tradition, Uzeyir Hajibayli, initiated the establishment of a folk instruments orchestra.

This ensemble was notable for being the first orchestra in the East organized on the principles of a symphonic orchestra but using only folk instruments, and it marked a major milestone in the development of national music culture.

The orchestra’s repertoire blends traditional Azerbaijani folk music with works by prominent Azerbaijani and international composers, and it often performs at state ceremonies, major concert halls, and music festivals.

In 2026, the orchestra will celebrate the 95th anniversary of its founding. Concerts held throughout the year will be organized as part of the event plan dedicated to the orchestra’s 95th jubilee.

Azerbaijan is increasingly demonstrating that its economic relevance extends well beyond oil and gas. Historically positioned at the crossroads of East and West, the country has long functioned as a natural transit hub. Today, however, Azerbaijan is transforming this inherited geographic advantage into a strategic economic asset through the development of the Middle Corridor, officially known as the Trans-Caspian International Transport Route (TITR). As global supply chains face prolonged disruptions, geopolitical risks, and congestion along traditional routes, the Middle Corridor is emerging as a competitive alternative – defined not only by geography, but by speed, reliability, and institutional coordination.

Recent operational data underline a key trend: reduced transit time is rapidly becoming the corridor’s strongest value proposition. According to Wang Sui Dun, Managing Director of Beijing Cross-Eurasia International Logistics, the average delivery time for cargo transported via the Xi’an-Baku railway route fell to 16 days in January 2026, down from 17 days in December 2025. While a one-day reduction may appear marginal, in logistics terms it represents a meaningful efficiency gain – particularly for time-sensitive and high-value cargo. Faster transit reduces inventory holding costs, improves supply chain predictability, and enhances the overall competitiveness of the route vis-à-vis maritime transport.

The operational intensity of the corridor is also increasing. Eight freight trains were dispatched on the Xi’an-Baku route in January 2026, compared to eleven in December 2025, reflecting both seasonal fluctuations and ongoing optimization of schedules. Since the launch of regular container train services on the Middle Corridor in 2019, traffic has grown steadily, with more than 400 train runs recorded in 2025 alone. The launch of a new service from Beijing on 30 June 2025 further expanded the corridor’s geographic reach, reinforcing Azerbaijan’s role as a pivotal Eurasian logistics node.

Infrastructure investment has been a decisive factor behind these gains. The modernization of the Baku-Tbilisi-Kars (BTK) railway in 2024 increased annual throughput capacity from 1 million tonnes to 5 million tonnes, significantly reducing bottlenecks along one of the corridor’s most critical segments. Equally important is the growing institutional integration along the route. In August 2024, China Railway and Container Shipping Corporation (CRCT) joined the joint venture ‘Middle Corridor Multimodal Ltd,’ signaling stronger coordination between rail, maritime, and logistics operators. This institutional consolidation has translated into measurable results: in early 2026, the first train of the year arrived in Baku with a reported transit time of just 11 days-approaching levels that position the Middle Corridor as a serious competitor to northern routes.

Yet, the corridor’s future success will depend not only on steel and concrete, but also on regulatory efficiency. According to forecasts by the International Road Transport Union (IRU), freight volumes along the Middle Corridor could triple by 2030. However, without decisive modernization of border-crossing procedures, customs digitalization, and harmonized documentation, actual volumes could fall up to 35% short of their potential. This gap highlights a critical reality: in modern logistics, institutional efficiency is as vital as physical infrastructure. Delays at borders can easily erase gains achieved through faster rail and port operations.

The growing strategic relevance of the Middle Corridor is also reshaping trade patterns. Whereas earlier cargo flows were dominated by raw materials such as oil and minerals, containerized freight is now expanding rapidly. Over the past 12 months, container volumes along the corridor have more than tripled, with over 60% consisting of Chinese exports destined for European markets. This shift reflects deeper integration into global value chains and underscores the corridor’s role not merely as a transit route, but as a facilitator of diversified trade.

In this context, Azerbaijan’s role extends beyond that of a transit country. By reducing transit time, expanding capacity, and strengthening institutional cooperation, the country is positioning itself as a key architect of a more resilient and multipolar Eurasian logistics architecture. As global trade increasingly prioritizes speed, security, and diversification, the Middle Corridor’s evolving efficiency may prove to be its most decisive competitive advantage.

Israel is preparing to open talks with the Trump administration on a new 10-year security agreement, aiming to secure continued US military support while gradually reducing reliance on direct American cash grants, Azernews reports via the Financial Times.

Speaking to the FT ahead of stepping down as chief financial adviser to Israel’s military and Defence Ministry, Dr. Gil Pinchas said Israel plans to prioritise joint military and defence projects over traditional financial assistance in negotiations expected to take place in the coming weeks.

‘The partnership is more important than just the net financial issue in this context. there are a lot of things that are equal to money,’ Pinchas said, stressing that future cooperation should be viewed in broader strategic terms.

According to him, the current level of direct financial support – about $3.3 billion annually, which Israel uses to purchase US-made weapons – is only one element of the existing memorandum of understanding (MOU) and could be gradually reduced.

In 2016, Washington and Tel Aviv signed a 10-year MOU running until September 2028, under which the US committed $38 billion in military aid, including $33 billion in grants for defence procurement and $5 billion for missile defence systems.

Earlier this month, Israeli Prime Minister Benjamin Netanyahu said Israel hoped to ‘taper off’ its dependence on US military assistance over the next decade, signaling a strategic shift toward deeper cooperation and greater self-reliance.

The United States has decided to raise tariffs on certain goods imported from South Korea, increasing duties from 15% to 25%, Azernews reports.

‘Since the South Korean legislature has not approved our historic trade agreement – which is, of course, its prerogative – I am raising tariffs on automobiles, lumber, pharmaceutical products, as well as all retaliatory duties, from 15% to 25%,’ the White House stated.

Former President Donald Trump noted that Washington and Seoul reached a trade agreement in July 2025, with its terms reaffirmed in October. However, the deal has yet to be ratified by South Korea’s parliament. ‘Why didn’t the Korean legislature approve it?’ Trump asked rhetorically.

‘Our trade agreements are extremely important for America,’ he said. ‘In each case, we moved quickly to lower tariffs in line with the agreed terms. We naturally expect our trading partners to do the same.’

Analysts point out that the tariff increase could strain U.S.-South Korea economic relations, particularly in the automotive and pharmaceutical sectors, which are deeply integrated across global supply chains. Higher duties may lead to increased costs for manufacturers and consumers in both countries, while also encouraging companies to reconsider production locations.

The move comes amid a broader global trend toward more assertive trade policies, as governments increasingly use tariffs not only as economic tools but also as leverage in political negotiations. Some experts warn that prolonged tariff disputes could slow regional economic growth, while others argue they may accelerate efforts to diversify trade partnerships and reduce dependence on single markets.

India and the European Union have signed a comprehensive agreement to strengthen cooperation in security and defence, Prime Minister Narendra Modi announced at a joint press conference following the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa to New Delhi.

Azernews reports that the deal marks the first wide-ranging framework between the two sides in defence and security. It covers areas including maritime security, defence manufacturing and technologies, cybersecurity, hybrid threats, space, and counter-terrorism.

Modi said the agreement aims to expand joint defence production while reaffirming their commitment to a rules-based international order. ‘This will enable us to broaden the scope of our cooperation in the Indo-Pacific region,’ he added.

Highlighting global instability, Modi noted that the India-EU partnership could serve as a stabilising factor in the international system.

The pact represents a significant step in deepening strategic ties between India and Europe, signalling a shared commitment to security, technological collaboration, and regional stability.

Operational and investigative measures carried out by Azerbaijan’s State Security Service (SSS) have raised well-founded suspicions that three Azerbaijani citizens were preparing to carry out a terrorist attack on a foreign country’s embassy in Baku on the grounds of religious hostility.

Citing the State Security Service, Azernews reports that the suspects are Ilgar Ilham oglu Guliyev, born in 2000 and known by the religious alias ‘Abu Zar al-Muhajir’; Amin Elshad oglu Piriyev, born in 2005 and known as ‘Abdurashid’; and Elvin Sanan oglu Alizadeh, born in 2005 and using the alias ‘Abdurrahman al-Azari.’

The SSS reported that the individuals had established criminal links with members of the ISIS terrorist organization’s ‘Wilayat Khorasan’ armed wing. Acting as a premeditated group, they allegedly acquired items intended to be used as weapons to carry out a terrorist attack on a foreign state’s embassy in Azerbaijan.

The suspects were detained by SSS officers as they approached the area where the embassy is located.

A criminal case has been opened against Ilgar Guliyev, Amin Piriyev, and Elvin Alizadeh under Articles 28 and 214.2.1, 28 and 214.2.3, and 28 and 214.2.6 of the Criminal Code of the Republic of Azerbaijan. The charges relate to preparing an act of terrorism motivated by religious hostility, committed by a group acting in prior collusion and involving the use of objects as weapons.

By a court decision, all three individuals have been placed under pretrial detention. Investigative and operational measures in the case are currently ongoing.

The Chinese company Eyou Robot Technology has inaugurated a factory dedicated to the production of joints for humanoid robots, becoming the world’s first specialized facility of its kind, Azernews reports.

Located in Shanghai, the factory is designed to produce up to 100,000 joints per year, with the potential to expand production by threefold. Eyou Robot Technology estimates that these joint modules account for roughly 50% of the total cost of a single humanoid robot, highlighting their critical role in the industry.

The expansion of production is expected to strengthen the company’s position in the market ahead of the anticipated start of mass sales of humanoid robots. By focusing on supplying key components, the manufacturer aims to secure a strategic niche before the large-scale growth of the humanoid robotics industry.

Previously, Chinese engineers reported in the journal Science Advances on the development of a new type of robotic limb that mimics the structure of human leg bones. According to researchers, hundreds of research and engineering teams worldwide are currently working to enhance humanoid robots, from improving mobility and dexterity to integrating AI-powered perception systems.

Experts suggest that advances like Eyou Robot Technology’s joint modules could significantly accelerate the adoption of humanoid robots in industries ranging from healthcare and eldercare to logistics and personal assistance. Some even predict that these robots may become commonplace in urban households within the next decade, transforming daily life in ways previously imagined only in science fiction.