How Azerbaijan expanded its role in the Western Balkans

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Azerbaijan’s initiatives to strengthen relations with Western Balkan states revolve mainly around energy security and diversification, economic cooperation, infrastructure investments and shared historical and political struggles.

Although often overlooked in global politics, the Western Balkans have emerged as a region of strategic importance on Azerbaijan’s foreign policy agenda, especially for accessing new energy markets and extending its influence across peripheral but essential transit routes to the EU.

The onset of the Russo-Ukrainian war in 2022 has caused significant geopolitical challenges for the Western Balkan states, which have been heavily reliant on Russia’s energy resources. Azerbaijan has sought to take advantage of this complex geopolitical environment to offer its energy assets, concurrently helping these states relieve Moscow's dependency and establishing a noticeable footprint in the region as a reliable and friendly energy partner and investor.

Through a multifaceted foreign policy approach, Azerbaijan has surprisingly developed balanced and productive relations with each country in the Western Balkans, especially given the region's continuing struggle with internal quarrels. For instance, Baku has managed to foster close diplomatic ties with both Serbia and Albania despite their deep disagreements over the recognition of Kosovo’s independence.

The element of shared historical and political struggles between the Western Balkans and the South Caucasus, embedded in bloody ethno-territorial conflicts stemming from political disintegration in the 1990s, has made Azerbaijan a “familiar” and welcome player in the region. A combination of recent geopolitical shifts caused by the Russo-Ukrainian conflict, Azerbaijan’s proactive and pragmatic foreign policy, an investment-hungry Western Balkans, and mutual perceptions of shared historical experiences has paved the way for Azerbaijan to smoothly enter the marginal, although strategically close, region to the EU. 

Geopolitical factors and energy interests

While the Russo-Ukrainian conflict has seriously disrupted energy security in Europe and has made Russia a highly unwanted and avoidable supplier in the energy market of the EU, Azerbaijan has risen as a new, reliable energy partner that, although it cannot satisfy Europe's energy needs, can contribute to alleviating its current energy crisis.

Unlike the EU, which has confronted the ongoing energy crisis with utilizing energy reserves, transitioning to alternative and renewable energy sources, and securing continued gas imports from alternative suppliers, the economically vulnerable Western Balkan states remain less resilient to energy disruptions. Such energy inflexibility in the Western Balkans is primarily the result of budgetary limitations, limited and poorly integrated gas pipeline networks, and, to some extent, of geographic constraints such as restricted access to LNG infrastructure and geopolitical alignments that obstruct diversification processes.

Azerbaijan has been monitoring with great interest the energy situation in the EU and the Western Balkans for some time. Geopolitical shifts resulting from the Russo-Ukrainian war and the subsequent energy crisis have provided the country with a significant window of opportunity to extend its energy influence through the Western Balkan states’ routes to reach the EU market.

Azerbaijan has been very proactive in deepening energy and investment partnerships, especially with Serbia, whose already strong economic and diplomatic ties with Baku predate the 2022 energy crisis, as well as with Albania and North Macedonia. Azerbaijan-Western Balkans energy cooperation mainly includes projects and investments within the Southern Gas Corridor (SGC) and, for Serbia and North Macedonia, is based on a shared interest in diversifying energy sources away from Russia.

Following the commissioning of the Bulgaria-Serbia Gas Interconnector in 2023, Serbia gained access to the SGC, enabling Azerbaijani gas to cover around 15% of Serbia’s gas demand. However, the full capacity of this pipeline on the Serbian side is 1.8 cubic metres a year, which can satisfy 60% of the country's annual gas needs. In September 2024, Belgrade and Baku signed an emergency gas supply deal for an additional 1 million cubic meters of natural gas per day from November to April 2025, providing Serbia with greater energy security throughout the winter months.

Albania, which has been a transit country for Azerbaijani gas through the Trans Adriatic Pipeline (TAP) since 2020, is set to become a recipient country in 2026. The Albanian government is seeking available options for diversifying the country’s heavy reliance on hydropower. Azerbaijan’s gas from the transiting pipeline has become a plausible choice, especially given the recent intensified diplomatic cooperation between Tirana and Baku.

Although North Macedonia is not yet part of the SGC network, recent diplomatic efforts and the 2024 Memorandum of Understanding between the State Oil Company of the Azerbaijan Republic (SOCAR) and Elektrani na Severna Makedonija (ESM) suggest prospects for long-term energy cooperation. This small Western Balkan state has already started receiving limited amounts of the Azerbaijani gas as part of a hybrid gasification scheme through Bulgarian traders.

Montenegro and Bosnia and Herzegovina have shown increased interest in receiving Azerbaijan’s gas, which can help these Western Balkan countries obtain greater energy stability and diversification of energy resources. In particular, the proposed Ionian-Adriatic Pipeline (IAP) project, which would carry gas from Albania through Montenegro and Bosnia and Herzegovina to Croatia, has received significant attention and support from Montenegro’s and Bosnia and Herzegovina’s officials. IAP could act as a bridge between the Caspian region and Western Europe and allow participating Western Balkan states to gain more influence within the EU’s wider energy supply chain.

Bilateral cooperation beyond energy

Although energy relations represent the backbone of bilateral cooperation between Azerbaijan and each Western Balkan state, there are other dimensions of collaboration, including investment, transport connectivity, tourism, cultural diplomacy, political dialogue, and defense cooperation that enrich these relations and place them beyond solely energy-related.

Serbia

Serbia remains the most important and established strategic partner of Azerbaijan in the region. The shared principle of sovereignty and territorial integrity plays a significant role in the strategic friendship between Azerbaijan and Serbia that was formalized with the 2013 Declaration on Friendly Relations and Strategic Partnership. This partnership reflects a pattern of mutual diplomatic support, with Azerbaijan supporting Serbia’s non-recognition of Kosovo and Serbia repeatedly reaffirming Azerbaijan’s territorial integrity over Karabakh.

Over the years, trade between these two countries has rapidly grown, increasing from a modest $8 million in 2019 to around $56 million by 2021. In 2024, when Azerbaijan began distributing natural gas to Serbia, the total trade volume rose to over $190 million, with energy exports alone exceeding $100 million.

In terms of investment and connectivity, prominent Azerbaijani construction firms are successfully undertaking significant highway projects in Serbia that strengthen regional transportation links, while several Serbian companies operate in Azerbaijan in the trade and services, agriculture, and infrastructure sectors.

Azerbaijan and Serbia have also concluded important security and defense agreements and consultations. In 2021, the two governments signed a new defense agreement worth over $300 million for Serbian-produced NORA B-52 (155 millimeter) self-propelled artillery. Defense cooperation is further deepened with bilateral military plans updated on an annual basis since 2024, which include high-level defense visits, consultations regarding joint exercises, and arms deals, demonstrating a strong mutual commitment to defense partnership.

Relationship between Baku and Belgrade is maintained through frequent high-level visits. In terms of the contractual and legal framework, Azerbaijan and Serbia signed 57 bilateral agreements between 2010 and 2023, further elevating their multifaceted cooperation. At the same time, people-to-people relations have become more relaxed following the mutual abolition of visa regimes in 2021.

Albania

Besides important energy cooperation, which has allowed Albania, a resource-deficient country, to play a significant transit role in European energy security through Azerbaijan’s gas, recent high-level visits have broadened and deepened the relationship. Political rapprochement between Baku and Tirana is evident in the establishment of embassies, frequent high-level visits, and encouraging statements from top officials praising the relationship.

Azerbaijan opened its embassy in Albania in 2022, and Albania is also represented by an Ambassador in Azerbaijan, signaling mutual interest in further developing productive bilateral cooperation. In 2014, both countries introduced a visa exemption allowing stays of up to 90 days within 180 days for each other’s nationals, encouraging people-to-people connections and fostering tourism, trade, and cultural exchange.[ES1] 

Two other important events that contributed to the deepening of the friendly bilateral relationship between Azerbaijan and Albania were humanitarian and diplomatic in nature. In 2019, Azerbaijan provided humanitarian aid, offering €500,000 in financial assistance to earthquake-stricken Albania. As a significant diplomatic gesture, Albania opposed a special resolution containing a clause that Baku characterized as 'anti-Azerbaijan' during the 2022 Francophonie Summit.

Bosnia and Herzegovina

Azerbaijan and Bosnia and Herzegovina have traditionally maintained good relations, shaped by shared historical experiences and the legacy of bloody conflicts that left both nations scarred by war victims and forced displacement. The Khojaly-Srebrenica monument in Sarajevo serves as a testament to these tragic experiences shared by the two nations.

The humanitarian aspect of the relationship has been notable through Azerbaijan’s Heydar Aliyev Foundation, which assisted in a number of projects, including reconstructing a center for the blind and visually impaired children and youth in Sarajevo. During the COVID-19 pandemic, Azerbaijan provided humanitarian aid in 40,000 doses of vaccines to Bosnia and Herzegovina for the fight against the coronavirus.

In 2023, Azerbaijan and Bosnia and Herzegovina signed a Joint Declaration on Strategic Partnership, marking a deepening of ties that extend beyond energy and expanding cooperation across various sectors, including the economy, infrastructure, culture, education, transport, and other fields.

Montenegro

Azerbaijan and Montenegro established official diplomatic relations in 2008. Since then, high-level visits have increased bilateral cooperation. In addition to energy interests, Azerbaijan and Montenegro have been keen on expanding cooperation in trade, investment, and transportation.

North Macedonia

While energy is the main driver in Azerbaijan-North Macedonia relations, both countries are interested in exploring other, non-energy collaboration venues. High-level visits, such as the North Macedonian President's visits to Baku in November 2024 and March 2025, contribute to fostering closer communication and diversifying partnerships between states. There is also present cooperation through inter-parliamentary working groups and within international organizations.

Future cooperation

As bilateralism remains a central force in international relations and the most effective mode of cooperation, especially for smaller countries, collaboration between Azerbaijan and each Western Balkan state is expected to continue thriving. Since energy will remain a valuable resource in the foreseeable future, Azerbaijan’s role in the region will continue to be significant. Proposed new pipelines, extensions of existing ones, and increased exports of natural gas from Azerbaijan to Western Balkan states could deepen not only energy ties but also political and economic bilateral relations.

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