Georgia and Azerbaijan sign landmark energy and transport agreements in Baku
In a sweeping diplomatic push in Baku, Georgia and Azerbaijan have signed a landmark package of energy and transport agreements, cementing a partne...
Another shipment of petroleum products from Azerbaijan to Armenia has been dispatched, with 39 rail tank cars carrying 4,500 tonnes of diesel fuel sent today, Report informs.
The cargo departed from the Guzdek station operated by Azerbaijan Railways and is heading towards the Boyuk Kesik station on the Azerbaijan-Georgia border before continuing to Armenia via transit through Georgia.
The shipments are part of a trade resumption process that began in December 2025 after transit restrictions between Azerbaijan and Armenia were lifted by President Ilham Aliyev in October 2025, ending limitations that had been in place since the occupation period.
Fuel exports to Armenia started on 18 December 2025 with 1,220 tonnes of RON95 petrol. Additional deliveries followed on 9 January 2026, including 1,742 tonnes of RON95 petrol and 956 tonnes of diesel fuel, and another consignment on 11 January 2026 comprising 18 rail wagons carrying 979 tonnes of RON92 petrol.
In addition to fuel, Azerbaijan has also been sending grain transport shipments to Armenia, reflecting the gradual expansion of commercial exchanges and broader trade normalisation between the two countries.
Officials said the exports are expected to help stabilise fuel prices in the Armenian market as economic ties between the two countries gradually normalise. The petroleum products are transported by rail from Azerbaijan, crossing Georgia before reaching Armenia.
Speaking to AnewZ, political analyst Fuad Karimli said the growing scale of fuel deliveries reflects both economic and strategic objectives between Azerbaijan and Armenia.
Karimli said the shipments help generate revenue for Azerbaijan while giving Armenia access to cheaper fuel and supporting transit efficiency through Georgia by lowering transport costs.
“There are economic goals between the two countries. Azerbaijan is selling more fuel, so we are getting more revenue, while Armenia is getting fuel at a lower cost. We see Georgia also in the process of decreasing transit fees. The main idea is that by increasing fuel shipments we are building consistency. There is increasing energy trade and reliability on both ends, and that is the main idea behind it, to build trust between the two countries,” he said.
He added that consistency in energy trade is the main driver behind the deliveries, noting that the economic impact is also significant for Armenian consumers amid ongoing fuel price inflation.
Karimli said the shift from earlier gasoline shipments to diesel exports carries greater industrial importance.
“Diesel is strategically significant as a backbone fuel for industry and transport compared with earlier gasoline shipments. Gasoline is usually used by consumers and private cars, but diesel is the backbone of industry, agriculture and heavy industry,” he said.
He added, “This shows that Azerbaijan is willing to help Armenia diversify its fuel sources for industrial use. It is a step forward. It is not just for the public but for industry, and it carries very significant strategic importance.”
Describing the trade flow as a possible pilot model for future cooperation, he said the deliveries demonstrate the practical benefits of normalisation and may encourage deeper economic engagement.
He suggested that future cooperation could extend beyond fuel trade into sectors such as agriculture and electricity exchange, arguing that agricultural trade would carry symbolic value by reflecting reconciliation through finished food products.
Karimli said the current trade pattern does not represent a complete transformation of the South Caucasus regional order but shows gradual adjustment to a new economic environment.
He said external actors, including Russia and Iran, may remain influential in long-term transit and connectivity developments, while noting that the proposed TRIPP is still a future initiative and is not connected to current shipment operations.
Karimli also highlighted the role of United States in supporting economic confidence-building measures in the region, saying diplomatic engagement reflects a pragmatic approach that prioritises economic cooperation.
He acknowledged that historical and emotional grievances remain among some communities but expressed hope that continued economic interaction would support long-term peace between Azerbaijan and Armenia.
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