Azerbaijan and Armenia take historic step toward economic cooperation

A recent agreement allowing the shipment of Azerbaijani petroleum products to Armenia has emerged as a significant development in relations between the two countries.

The move comes amid cautious steps towards normalisation following years of conflict, without the formal signing of a peace treaty, raising questions about how economic cooperation can progress alongside unresolved political issues.

Speaking on Context on AnewZ, Qaya Mammadov, a Member of Azerbaijan’s Parliament and Head of the Milli Majlis delegation, discussed the importance of the arrangement and its wider implications with AnewZ's Orkhan Amashov.

Mammadov said the agreement follows earlier commitments made at the highest political level and represents a qualitative shift in bilateral engagement.

“Indeed the recent trade deal between Azerbaijan and Armenia on shipment of Azerbaijan petroleum products to Armenia is a milestone development.”

He noted that while Azerbaijan had previously lifted transit restrictions, this step goes further by introducing direct trade between the two countries.

“It certainly builds on the previous decision of Azerbaijan to lift transit limitations to Armenia but it is a qualitatively new level. It has been first time since decades Azerbaijan and Armenia have been engaged in direct trade transaction.”

While acknowledging the commercial importance of the deal, Mammadov stressed that its broader significance lies in re-establishing direct economic interaction.

“Of course commercially, this is important but its significance is to recreate a practice of direct trade relationship between the two countries.”

Addressing concerns about economic cooperation taking place without a signed peace agreement, Mammadov pointed to historical precedents.

“Regarding your comment cooperating without a peace agreement being on place. 
It is a relevant question but I remember President Aliyev mentioned a few months ago rather refer to the practice of trade relationship between the Soviet Union and later between the Russian Federation and Japan in absence of peace treaty.”

He added that while cooperation without a peace treaty is possible, Azerbaijan does not wish to delay a formal settlement.

“We didn't of course we certainly do not wish to wait so long as Russia and Japan and have been waiting for decades but you can cooperate basically in absence of peace agreement but certainly an ultimate objective of both countries is to finalise the peace treaty as soon as possible.”

Mammadov underlined that the oil trade deal represents both a symbolic and practical step towards rebuilding trust between Azerbaijan and Armenia. 

While economic cooperation can proceed without a formal peace agreement, he emphasised that the ultimate goal for both sides remains the signing of a comprehensive peace treaty in the near future.

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