AZE.US
Azerbaijan and Latvia on Tuesday used a business forum in Baku to push for broader economic cooperation, with President Ilham Aliyev and Latvian President Edgars Rinkevics highlighting investment, energy, logistics, agriculture and defense industry as key areas for future joint work.
Speaking at the forum on April 22, Aliyev said Azerbaijan had made major progress in reducing its dependence on oil and gas, arguing that economic diversification was no longer just a goal but an established trend.
He said the share of non-oil industry in gross domestic product had risen from 50% to more than 70% over the past four to five years. He also pointed to what he described as strong macroeconomic stability, saying Azerbaijan’s external debt stood at 6.1% of GDP and that the country’s foreign exchange and gold reserves exceeded external debt by more than 18 times.
Aliyev said Azerbaijan was now working not only to diversify its economy but also to broaden its exports, even as natural gas production continues to rise.
He said 10 European Union member states currently receive Azerbaijani gas, while the total number of countries importing Azerbaijani gas has reached 16. According to Aliyev, Azerbaijan ranks first in the world in the geographical spread of gas exports delivered by pipeline.
Energy remained one of the central themes of the forum. Aliyev said Azerbaijan had moved from oil exports to supplying natural gas, electricity and petrochemical products, and now plans to add green energy exports to that portfolio.
He said the country’s legally binding contracts envisage 8 gigawatts of solar, wind and hydropower capacity by 2032. That expansion, he said, would allow Azerbaijan to replace part of the natural gas currently used for domestic electricity generation and free up additional volumes for export.
Aliyev also presented Azerbaijan as an increasingly important transport hub linking East and West as well as North and South. He said all major construction work on transport corridors crossing Azerbaijani territory had been completed and that current investment was focused on modernization, digitalization and new infrastructure.
In his words, Azerbaijan’s role has become critical for trade routes between East and West, especially in the current geopolitical environment, and cargo volumes transiting the country are increasing every year.
The Azerbaijani president said Baku also sees investment opportunities in the reconstruction of Karabakh and East Zangezur, in the Alat Free Economic Zone, and in sectors such as agriculture, tourism and water management.
Aliyev noted that more than $350 billion had been invested in Azerbaijan’s economy over the last 20 years, including about $170 billion from foreign sources.
Rinkevics said Latvia was ready to deepen and expand trade and economic ties with Azerbaijan, which he described as Latvia’s main trading partner in the South Caucasus and a reliable partner in a period of geopolitical uncertainty.
He said defense industry cooperation was one of the areas of particular interest, adding that both countries were developing capabilities in that field. He pointed to drones and counter-drone systems as visible examples of fast-moving technological change, and said Latvian defense companies were interested in finding partners in Azerbaijan and beyond.
Rinkevics also said he saw room for closer cooperation in agriculture, forestry, education, pharmaceuticals, architecture, engineering and logistics.
He described Latvia as a gateway to Northern and Central Europe and said shifting geopolitical conditions should be viewed not only as a challenge but also as an opening to develop cargo infrastructure, air transport and logistics networks.
The Latvian president separately praised Baku’s White City project, saying it demonstrated Azerbaijan’s capacity to turn heavily polluted land into a modern urban district in less than 15 years. He said such projects could create openings for foreign investors and companies offering architectural, engineering and design expertise.
Rinkevics said he had invited Aliyev to pay an official visit to Latvia next year, adding that both governments and business communities should use the coming year to turn political dialogue into visible economic results.
The tone of the forum suggested both sides want to move beyond diplomatic goodwill and toward more practical outcomes, including joint ventures, new investments and sector-specific cooperation in energy, transport and manufacturing.
AZE.US