By Ferhat Aznevi, Attorney at Law, Member of the Ankara Bar Association

Introduction

The economic relations between Türkiye and Azerbaijan have evolved into a multidimensional model of cooperation based on a strategic partnership that extends far beyond their shared historical, cultural and linguistic ties. Deepening cooperation in the fields of energy, trade, transportation, logistics and investment has transformed this bilateral relationship into one of the most significant economic partnerships in Eurasia, particularly in light of recent geopolitical developments.

The Russia–Ukraine War has significantly altered the traditional trade routes connecting Europe and Asia. At the same time, the Iran–Israel conflict and the subsequent military operations conducted by the United States against Iran have increased uncertainties surrounding the Southern Corridor. These developments have elevated the Middle Corridor (Trans-Caspian International Transport Route), in which both Türkiye and Azerbaijan play pivotal roles, into one of the most prominent transportation, trade and energy corridors across Eurasia.

Energy Cooperation

Energy constitutes the cornerstone of the economic partnership between Türkiye and Azerbaijan. The Baku–Tbilisi–Ceyhan Crude Oil Pipeline, the Baku–Tbilisi–Erzurum Natural Gas Pipeline and the Trans-Anatolian Natural Gas Pipeline (TANAP) have made substantial contributions not only to the economies of the two countries but also to Europe’s energy security.

While Azerbaijan has emerged as one of Europe’s major suppliers of natural gas, Türkiye has further strengthened its position as a regional energy hub and distribution centre. Furthermore, investments in renewable energy and offshore wind energy projects in the Caspian Sea have opened a new chapter in bilateral energy cooperation.

Trade, the Middle Corridor and the Zangezur Passage

Recent geopolitical developments have fundamentally reshaped Eurasian trade routes. The sanctions and security risks arising from the Russia–Ukraine War have reduced the attractiveness of the Northern Corridor, while geopolitical tensions centred on Iran have increased uncertainties surrounding the Southern Corridor. Consequently, international trade actors have increasingly sought alternative transportation routes.

Within this context, the Trans-Caspian route through Azerbaijan and Türkiye has emerged as one of the leading transit corridors for the transportation of energy resources, industrial goods, commodities and commercial products from China, Central Asia and the Indian subcontinent to European markets. Azerbaijan is no longer merely an exporter of oil and natural gas; it has become one of the principal transit hubs along the East–West axis of Eurasia. Türkiye, in turn, serves as the strategic gateway connecting this corridor to Europe.

One of the most significant components of this integration is the Zangezur Passage. Article 9 of the Ceasefire Agreement signed on 10 November 2020 between Azerbaijan, Armenia and the Russian Federation provides for the restoration of regional economic and transport connections and envisages the establishment of transport links between the western regions of Azerbaijan and the Nakhchivan Autonomous Republic. This provision constitutes an important international commitment aimed at re-establishing regional transportation networks.

In this respect, Armenia’s fulfilment of its obligations under Article 9 is of critical importance not only for ensuring uninterrupted transport between mainland Azerbaijan and Nakhchivan but also for enabling the Middle Corridor to operate at its full potential. The establishment of uninterrupted transit through the Zangezur Passage would strengthen the overland connection between Türkiye and the Turkic world, enhance the efficiency of the Trans-Caspian trade corridor, and facilitate the movement of goods, energy resources and commercial traffic between Asia and Europe.

At the same time, the operationalisation of the Zangezur Passage would create substantial economic opportunities not only for Azerbaijan and Türkiye but also for Armenia. Increased transit revenues, logistics investments, cross-border trade, infrastructure modernisation and enhanced access to international investment would enable Armenia to benefit directly from regional economic integration. Accordingly, the opening of regional transport corridors should be regarded not merely as a commercial initiative but also as an important instrument for promoting economic prosperity, regional interdependence and sustainable peace throughout the South Caucasus.

Economic Integration with the Balkans

The energy and transportation projects jointly developed by Türkiye and Azerbaijan have implications extending well beyond the two countries themselves. Through the Balkans, these projects contribute directly to the energy security and economic integration of Central Europe. Natural gas transmission systems, oil pipelines, railway connections and road transport networks provide Balkan countries with greater access to diversified energy supplies while strengthening regional energy security.

This development is fully consistent with the European Union’s strategy of diversifying its energy sources. Moreover, it creates new opportunities for Türkiye and Azerbaijan to deepen their cooperation with the Balkan region in the fields of trade, transportation, energy, logistics and investment.

Strategic Partnership and the Security Dimension

One of the most distinctive characteristics of Türkiye–Azerbaijan economic relations is that economic cooperation is reinforced by a comprehensive strategic and security partnership.

The Agreement on Strategic Partnership and Mutual Assistance signed between the Republic of Türkiye and the Republic of Azerbaijan in 2010 institutionalised bilateral cooperation in the fields of defence and security. This framework was further strengthened by the Shusha Declaration, signed in 2021, which elevated bilateral relations to a higher strategic level. These landmark documents provide a comprehensive framework for cooperation in energy security, transportation corridors, defence, regional stability, technological development and coordinated foreign policy.

Accordingly, the energy infrastructure and the Trans-Caspian Middle Corridor passing through Türkiye and Azerbaijan derive their significance not only from their geographical advantages but also from the strong political will, legal framework and security architecture established between the two countries. This strategic partnership enhances the resilience and sustainability of regional transport and energy networks and provides an additional level of confidence for international investors, trading partners and third countries relying on these routes.

Conclusion

Economic relations between Türkiye and Azerbaijan have evolved far beyond the scope of conventional bilateral trade and have become one of the fundamental pillars of the emerging geopolitical and geoeconomic order in Eurasia. Cooperation in energy, transportation, logistics and investment not only contributes to the energy and supply security of Europe but also deepens the economic integration of the two countries.

Azerbaijan may be regarded as the future “Netherlands of the Caspian Basin.” Owing to its hydrocarbon resources, strategic geographical location, rapidly developing port infrastructure and pivotal position along the Middle Corridor, Azerbaijan possesses significant potential to become a regional centre for energy trade, logistics, transit transportation and maritime services.

The strong economic and strategic partnership between Azerbaijan and Türkiye, the world’s 16th largest economy, has the potential to generate a significant multiplier effect for both countries. Türkiye’s industrial capacity, manufacturing base and direct access to European markets, combined with Azerbaijan’s abundant energy resources and strategic transit position, create a powerful economic synergy capable of contributing not only to the prosperity of the two countries but also to the broader economic integration of the Balkans, the South Caucasus, Central Asia and Europe.

Following the Russia–Ukraine War and the security crises centred on Iran, the strategic importance of the Trans-Caspian Middle Corridor has increased substantially. For the transportation of energy resources, commodities and commercial goods from China, Central Asia and the Indian subcontinent to Europe, the Türkiye–Azerbaijan route has emerged as one of the leading transit corridors owing to its advanced transport infrastructure, strategic geographical position, institutionalised strategic partnership and robust security cooperation. Moreover, the growing defence industries, advanced military technologies and capable armed forces of both countries further contribute to the protection and stability of regional trade and energy corridors.

In conclusion, the strategic partnership established between Türkiye and Azerbaijan represents a comprehensive model of regional integration that simultaneously strengthens cooperation in energy security, trade, transportation, defence, education, science, culture and technology. Joint initiatives in education, scientific research, cultural exchange and technological innovation enhance human capital and further deepen bilateral economic relations. As such, the Türkiye–Azerbaijan partnership constitutes not only a successful model of bilateral cooperation but also a strategic framework with the potential to foster a more stable, secure and sustainable economic order extending from the Balkans and the South Caucasus to Central Asia and Europe.