Relations between Azerbaijan and Germany are altering past power, with the 2 international locations deepening ties in trade and logistics as Europe seems to diversify its provide chains away from Russia.
“Azerbaijan is steadily now not acknowledged by Germany as a mere power provider and is changing into a part of the brand new industrial and logistics construction of Eurasia,” stated Orkhan Yortuyev, director of the CASPIA evaluation heart.
Yortuyev stated bilateral commerce between the 2 international locations reached roughly 1.7 billion euros in 2025, pushed by Germany’s exports of commercial gear, equipment and transportation techniques.
At the moment, greater than 250 German corporations function in Azerbaijan, spanning manufacturing, building, logistics and power.
The shift has accelerated since Azerbaijan started supplying fuel on to Germany and Austria in early 2026 as a part of a Europe-wide effort to scale back dependence on Russian power within the wake of Russia’s full-scale invasion of Ukraine.
past power
Yoltuev stated the actual change just isn’t within the commerce statistics, however in what they signify.
“It exhibits that the bilateral relationship is creating in direction of the next degree of commercial cooperation,” he stated, noting that Germany wants new export markets and extra resilient provide chains.
German corporations already lively in Azerbaijan might quickly be drawn into Azerbaijan’s reconstruction program and increasing industrial zone, particularly within the fields of engineering, transport, renewable power and superior manufacturing.
A lot of this alteration is thru the Central Hall, a transport route linking China, Central Asia and Europe by way of the Caspian Sea, Azerbaijan, Georgia and Turkey.
Russia’s struggle in Ukraine has given this route new urgency as European corporations search alternative routes to guard their provide chains from disruption.
Azerbaijan is positioned in a logistics hub, with sea and rail hyperlinks changing into central to transcontinental routes.
Yortuyev stated the worth of the hall lies in what it carries, reasonably than the quantity of cargo it carries.
“The upper the proportion of high-value-added merchandise equivalent to auto elements, industrial equipment, electrical gear, electronics and chemical merchandise, the extra financial effectivity this route could have,” he stated, citing the enlargement of Baku Port and Alat Free Financial Zone as a driver for brand spanking new manufacturing and logistics funding.
Vitality continues to be within the core
Regardless of the widening scope of cooperation, power stays central. Azerbaijan positions itself as a dependable fuel provider and has been sending fuel on to Germany and Austria since early 2026.
Farid Shukrul, an adjunct researcher on the Western Institute, stated the Russian invasion was a turning level.
“Historically, financial relations between Azerbaijan and Germany have been concentrated in a restricted variety of sectors, equivalent to heavy equipment, cars and prescription drugs,” he stated.
“Nonetheless, Russia’s full-scale invasion of Ukraine essentially modified bilateral financial relations.”
Inside 5 months of Azerbaijan’s first crude oil cargo to Germany, the nation has exported 360,300 tonnes of crude oil and petroleum merchandise value about $210.9 million (196 million euros), Shkrul stated.
He believes Azerbaijan might ultimately turn out to be a transit route for Kazakhstan’s oil and Turkmenistan’s fuel to Germany and different European markets.
Germany’s shift is important given its previous dependence on Russian fuel. Italy stays Europe’s largest purchaser of Azerbaijani fuel via the Trans-Adriatic Pipeline, however Germany is now transferring in the identical course.
Manfred Scherer, mayor of Verbandsgemeinde Sprendlingen-Gensingen, a municipality within the Mainz-Bingen area of Germany, recalled assembly Parviz Shahabazov, Azerbaijan’s present power minister, when he was ambassador to Germany.
“Financial relations between Germany and Azerbaijan have developed positively in recent times. There may be nice potential to additional strengthen cooperation,” Scherer stated.
“I’ve fond reminiscences of the go to of the present Vitality Minister Parviz Shabazov to our municipality in the course of the time when he was Azerbaijan’s ambassador to Germany,” he continued.
“At the moment, we mentioned alternatives to deepen {our relationships} and strengthen cooperation between areas via municipal partnerships.”
A broader European shift
Germany’s pivot matches into Europe’s broader reorientation in direction of the South Caucasus and Central Asia, with the help of the Armenia-Azerbaijan peace course of, and will unlock additional power diversification and regional connectivity.
A collection of high-level visits continued. European Fee President Ursula von der Leyen stated the partnership with Azerbaijan was “essential for the European Union” and there was “actual momentum”.
European Council President Antonio Costa visited Baku for talks on deepening EU re-engagement, and EU overseas coverage chief Kaja Callas additionally visited Baku in Might.
Italian Prime Minister Giorgia Meloni and Slovakian President Peter Pellegrini additionally held high-level talks with President Ilham Aliyev.
