Putin secures $120m trade deal with Azerbaijan
Putin and Aliyev strengthen trade ties with $120m investment
Russian President Vladimir Putin engaged in discussions with Azerbaijani President Ilham Aliyev on Monday during a two-day visit to enhance Moscow’s trade routes and fortify relations in the South Caucasus. The focus of their meeting in Baku was business, with Aliyev revealing a $120 million investment to improve cargo transport between Russia and Azerbaijan.
He mentioned the potential to transport over 15 million tons of cargo annually and noted that their trade turnover surpassed $4 billion last year, indicating further growth expectations.
This collaboration is crucial for Putin, who relies increasingly on surrounding countries to access global markets amidst sanctions due to Russia’s conflict in Ukraine, explained independent political scientist Zardusht Alizade. Azerbaijan is a vital transit point for Russia, facilitating access to markets including Iran and ports in the Indian Ocean, Alizade added.
Baku has responded positively to Putin’s efforts. For Azerbaijan, maintaining good relations with Moscow is essential for national security, especially given tensions with Armenia. Russia has historically supported Armenia since the Soviet Union’s collapse.
However, their relationship has deteriorated since September 2023, following Azerbaijan’s rapid military campaign that recaptured the Karabakh region, ending Armenian separatist control. Armenia accused Russian peacekeepers of failing to prevent their actions, but Moscow denied the allegations, stating that its troops lacked the mandate to intervene.
Azerbaijan anticipates that Moscow can influence Armenia to normalise relations. Alizade commented, “Russia can expedite the resolution of Armenian-Azerbaijani relations.”
Frequently Asked Questions
Here are some common questions asked about this news
What was the purpose of Putin’s visit to Azerbaijan?
To secure trade routes and strengthen ties in the South Caucasus.
How much money has been allocated to boost cargo transport between Russia and Azerbaijan?
$120 million.
Why is Azerbaijan important for Russia’s trade routes?
Azerbaijan is a key transit country for Russia to access global markets.
How has Azerbaijan benefited from maintaining good relations with Russia?
It helps with national security over tensions with Armenia.
What role does Russia play in Armenian-Azerbaijani relations?
Russia can pressure Armenia to normalize relations with Azerbaijan.
