Azerbaijan is becoming an increasingly important partner for Europe in energy security and freight transport.
As geopolitical conflicts and instability affect traditional routes, European countries are seeking to expand imports of Azerbaijani gas, develop the Middle Corridor and establish new channels for electricity exports.
Economist Murad Taghiyev, a professor at Baku State University, and economist Muslim Ibrahimov, a research fellow at Germany’s International University of Applied Sciences, discussed those trends on CBC TV’s “Economy of the Day” program, according to Vesti Baku.
The discussion followed the European Political Community summit in Dublin, where security, energy and transport connectivity featured prominently.
Azerbaijani Gas Remains in Demand
Ibrahimov said Azerbaijan accounted for about 4% of the European Union’s gas imports in 2025.
Although that share is relatively small, deliveries through the Southern Gas Corridor are particularly important to southeastern European countries seeking to reduce their dependence on a limited number of suppliers.
Taghiyev said Europe’s need for energy remains strong despite the growth of renewable power. Azerbaijan, meanwhile, is gradually expanding its capacity to generate solar and wind electricity.
The experts pointed to prospective energy corridors across the Black Sea to Romania and through Turkey to Bulgaria. Those projects could allow Azerbaijan to move beyond its traditional role as an oil and gas exporter and participate more broadly in a regional system for producing and transmitting green electricity.
The Middle Corridor and the Cost of Infrastructure
The Middle Corridor remains another major area of cooperation. The route connects China and Central Asia with Europe through the Caspian Sea, Azerbaijan, Georgia and Turkey.
Taghiyev said rising geopolitical risks along alternative routes are making the Trans-Caspian corridor more attractive. Developing the required infrastructure, however, will require substantial investment.
He argued that European governments should take a more active role in financing railways, ports and logistics centers because Europe itself benefits from reliable supply routes from Asia.
Ibrahimov noted that the European Union has announced grants of up to 200 million euros for transport, energy and digital projects in the South Caucasus. He said that funding could provide a foundation for attracting additional investment.
Peace With Armenia Could Open New Economic Opportunities
The participants also discussed prospects for normalizing relations between Azerbaijan and Armenia.
Ibrahimov said reopening transport links would give European companies access to a broader regional market while lowering logistics costs. Clear border-crossing rules and predictable delivery times could make the South Caucasus more attractive to private investors.
Further development of those routes will depend on the stability of the peace process and the implementation of infrastructure projects, including TRIPP.
Investment Is the Central Question
Taghiyev said investors focus closely on how long a project will take to pay for itself. Lower political risks could increase investment in Azerbaijan’s transport and energy infrastructure.
At the same time, he warned that the falling level of the Caspian Sea is creating additional challenges for shipping and port development.
The experts said Azerbaijan has significant opportunities to strengthen its economic ties with Europe. The country’s future role, however, will depend not only on its location and energy resources, but also on investment, infrastructure modernization and durable regional peace.