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Analysis Azerbaijan Caucasus

Economy-focused Azerbaijan-EU cooperation demonstrates the most tangible results

Dr. Gubad Ibadoghlu, Senior Analyst, Economic Research Center

Following Eastern Partnership leaders’ video conference on 18 June, EU leaders identified five long-term goals for the Eastern Partnership policy, which should be approved at a physical summit in March 2021.

First priority: an economy-focused partnership that creates jobs, contacts between countries, and opportunities for youth.

The second is the strengthening of state institutions, respect for human rights, gender equality, and the rule of law.

The third priority is called the “partnership that unites” – digital transformation. The EU will work with partners to modernize the necessary infrastructure.

The fourth priority is sustainability, including climate change and the corresponding response to it.

Fifth, the European Commission will continue to inform about the tangible results that citizens of the EaP countries receive from cooperation with the EU.

StrategEast has interviewed experts from Eastern Partner countries on top priorities of cooperation with the EU. Here are the answers from Azerbaijan.

In which of these areas can be observed the most tangible results of cooperation between the EU and your country at the moment?

My analysis and observation show that Azerbaijan has acquired the most tangible results of the cooperation of an economy-focused partnership with the EU. Thus, Azerbaijan accounts for 78% of EU trade with the South Caucasus region. In 2018, the EU’s share in Azerbaijan’s foreign trade was 42%. The European Union has invested $ 33.6 billion in the Azerbaijani economy, and Azerbaijan – up to $15 billion in the EU. More than 1,600 companies from EU countries operate in Azerbaijan.

Besides, starting next year, the Trans Adriatic Pipeline (TAP) is expected to transport 10 billion cubic meters of gas annually to Europe each year. TAP will meet 33 percent of Bulgaria’s gas needs, 20 percent of Greece’s, and 10.5 percent of Italy’s.

Are there any priorities for your country that were not mentioned at the videoconference of the EaP leaders?

Although the rule of law has been mentioned, cooperation in ensuring anti-corruption and transparency, combating money laundering, and asset recovery and return policy would include the list of priorities.