Azerbaijan

Azerbaijan-Uzbekistan Alliance: Strengthening the Bridge Between Central Asia and the South Caucasus

by CASPRI

In recent years, Azerbaijan and Uzbekistan have emerged as pivotal actors in fostering deeper ties between Central Asia and the South Caucasus, underscoring their shared strategic, economic, and geopolitical interests. The increasing cooperation between these two nations is emblematic of a broader trend aimed at integrating Central Asia’s transit and economic potential with the South Caucasus, providing access to Europe and global markets.

A key indicator of this growing relationship was Azerbaijani President Ilham Aliyev’s participation as an honorary guest at the 6th Consultative Meeting of the Heads of State of Central Asia in August 2023, hosted by Kazakh President Kassym-Jomart Tokayev. The summit signaled Azerbaijan’s growing influence in the region, particularly in the context of the Trans-Caspian International Transport Route (Middle Corridor), which is vital for Central Asian countries seeking access to European and Indian Ocean markets.

Geopolitical Shifts and New Strategic Alignments

The ongoing Russia-Ukraine conflict has reshaped regional alliances and underscored the importance of alternative transport routes. As a result, Azerbaijan has become a crucial partner for Central Asian nations, offering them access to Western markets through its strategic transit corridors. The Middle Corridor has become increasingly significant as sanctions on Russia disrupt traditional trade routes. Kazakhstan, in particular, views its partnership with Azerbaijan as an opportunity to enhance its role as a transit hub.

One of the most significant developments in Azerbaijan-Uzbekistan relations was the signing of the Agreement on Allied Relations during Aliyev’s visit to Tashkent, cementing their status as formal allies. This agreement represents more than just symbolic diplomacy, it reflects economic and political cooperation with continental implications. Both countries, free from Russia-led structures such as the Collective Security Treaty Organization (CSTO) and the Eurasian Economic Union (EAEU), are seeking greater autonomy in international relations, aligning their foreign policies with a more non-aligned, independent framework.

Economic Cooperation and Infrastructure Projects

Azerbaijan and Uzbekistan have significantly ramped up their economic cooperation, with trade between the two nations growing over sevenfold from $31.2 million in 2017 to $231.6 million in 2023. The leaders of both countries have set ambitious goals, aiming to increase this figure to $1 billion in the coming years. To facilitate this, they declared 2025 as the Year of Economic Cooperation, with plans for a comprehensive program covering 20 priority areas of economic interaction.

The Baku International Sea Trade Port is a vital link in this expanding trade relationship. Uzbekistan, despite lacking direct access to the Caspian Sea, is increasingly using Azerbaijan’s ports for the transit of goods, including sugar and mineral fertilizers, through Europe. Plans are underway to establish an Uzbek terminal at the Baku port, further deepening Uzbekistan’s integration into Azerbaijan’s logistics infrastructure. Additionally, both countries are engaged in joint energy projects, particularly in oil and gas exploration, with Uzbekneftegaz working closely with SOCAR to develop hydrocarbon fields in both nations.

Strategic Energy Partnerships

Energy cooperation between Azerbaijan and Uzbekistan is expanding beyond fossil fuels into green energy. Both countries are integral to a Strategic Partnership in Green Energy, along with Kazakhstan, which envisions an energy corridor connecting Central Asia to Europe through Azerbaijan. Uzbekistan is preparing to export up to 5 GW of green energy to European markets via Azerbaijan by 2030, further solidifying the latter’s role as a critical energy hub.

In parallel, Azerbaijan and Uzbekistan are working to diversify energy corridors. A draft agreement on green energy partnerships will enable these nations to collaborate on renewable energy projects and contribute to Europe’s energy security. This diversification aligns with both countries’ goals to modernize their economies while addressing global energy demands.

The Role of the Organization of Turkic States (OTS)

The Azerbaijan-Uzbekistan alliance is also strengthened by their participation in the Organization of Turkic States (OTS). The Ankara-Baku-Tashkent axis is becoming a cornerstone of the Turkic world’s geopolitical landscape. Unlike Kazakhstan and Kyrgyzstan, which are bound by CSTO and EAEU commitments, Azerbaijan and Uzbekistan have greater freedom to pursue independent foreign policies. Their joint initiatives within the OTS framework have evolved from cultural and humanitarian exchanges into substantial economic and political cooperation.

President Aliyev’s statement during his meeting with Uzbek President Shavkat Mirziyoyev that the South Caucasus, Central Asia, and the Caspian region are forming a single geopolitical space underscores the growing interconnectedness of these regions. Cooperation between Azerbaijan and Uzbekistan is no longer limited to bilateral agreements but now extends to shaping the broader geopolitical framework of Eurasia.

Joint Efforts in Transportation and Logistics

One of the most critical aspects of this cooperation is the development of joint transport and logistics infrastructure. As Central Asian nations seek alternative routes for global trade, Azerbaijan offers a critical connection point through the China-Kyrgyzstan-Uzbekistan railway, which, if extended to the Caspian, would directly link Azerbaijan with China and South Asia. The expanded cooperation between these countries highlights the strategic value of the Middle Corridor as a route that bypasses Russia and opens new possibilities for Central Asian-European trade.

The alliance between Azerbaijan and Uzbekistan is also crucial for broader regional security and political stability. Both countries are deeply involved in the “5 + 1” format, which brings together the Central Asian countries and Azerbaijan to address shared economic, security, and political challenges. This platform enables deeper cooperation in countering external threats and advancing mutual economic interests.

Conclusion: A Growing Axis of Power in Eurasia

The deepening relationship between Azerbaijan and Uzbekistan is not only transforming the bilateral dynamics between these two Turkic states but also playing a critical role in shaping the geopolitical and economic future of Central Asia and the South Caucasus. The alliance is driving a range of initiatives, from energy partnerships and trade expansion to transportation infrastructure and green energy projects. Their cooperation serves as a foundation for integrating these regions into global supply chains, bypassing traditional routes, and enhancing their strategic autonomy.

In summary, the Azerbaijan-Uzbekistan alliance is laying the groundwork for increased collaboration between Central Asia and the South Caucasus, fostering economic growth, and positioning both nations as key players in the evolving geopolitical landscape of Eurasia. This partnership is not just an asset for their bilateral relations but a vital force in connecting continents, markets, and regional powers.