Azerbaijan and Armenia take historic step toward economic cooperation

Azerbaijani MP Qaya Mammadov has described the recent trade agreement between Azerbaijan and Armenia as a historic milestone, signalling a possible shift in relations between the two countries.

On the latest episode of Context, Mammadov discussed the agreement with Orkhan Amashov of AnewZ, saying it marked a qualitatively new level of engagement after decades of limited contact.

The deal involves the shipment of Azerbaijani petroleum products to Armenia and forms part of broader efforts to rebuild economic ties following years of tension. It comes after President Ilham Aliyev pointed to new opportunities for regional cooperation during his state visit to Kazakhstan in October.

Although a comprehensive peace treaty between Azerbaijan and Armenia has so far only been initialled, Mammadov said the trade arrangement showed that practical cooperation could move forward even before a final political agreement is signed.

He said the development was significant not only commercially but also politically, as it revives direct trade practices that had been dormant for decades. For the first time in years, Azerbaijan and Armenia are engaging in direct trade transactions, a move he said could help build trust and encourage further cooperation.

When asked about cooperation in the absence of a fully signed peace treaty, Mammadov pointed to historical precedents, including trade between the Soviet Union, and later Russia, and Japan, which continued despite the lack of a formal peace agreement.

While both sides maintain that a comprehensive peace treaty remains the ultimate goal, observers see the trade deal as a pragmatic step, and a sign that both countries are willing to test cooperation on the ground, setting a cautious but meaningful precedent for the South Caucasus.

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