Baku’s decision to allow freight transit to Armenia for the first time in three and a half decades marks a turning point for the economy of the South Caucasus. Following President Ilham Aliyev’s official announcement on the reopening of transport through Azerbaijani territory, the region has entered a new phase of economic integration and infrastructural cooperation. The launch of the route is not merely a logistical breakthrough—it is the first tangible outcome of the peace agreements signed in Washington on August 8, 2025.
The first trains have already crossed the border. In early November, a cargo train carrying Russian grain completed the route Russia–Azerbaijan–Georgia–Armenia and successfully delivered its shipment. Soon after, another train from Kazakhstan followed the same path. Russia’s Ministry of Transport described the new route as economically efficient and emphasized that it will significantly reduce congestion at the Verkhny Lars checkpoint on the Russian-Georgian border, which has long been a major bottleneck for trade.
According to Russian Railways, the corridor will be used regularly in the coming months not only for grain but also for other types of freight, including container shipments from China and Kazakhstan. By the end of January 2026, at least 132 wagons of wheat are expected to pass through this route, with preparations already underway to expand the cargo categories handled along the line.
Armenia, which imports roughly half a million tons of grain annually—mostly from Russia—has until now relied almost entirely on maritime and road routes through Georgia. The new railway corridor via Azerbaijan offers a chance to reduce transportation costs, improve delivery stability, and broaden import geography. This alternative route mitigates logistical vulnerabilities and increases competitiveness among suppliers in Armenia’s food market.
Initially, Armenian opposition figures downplayed the significance of the breakthrough, claiming that the route lacked strategic importance. Yet, official institutions in Yerevan have since acknowledged that transit through Azerbaijan delivers measurable savings and encourages new investment in the transport sector. For the first time, Kazakh exports are also being shipped through Azerbaijani territory, reducing Armenia’s dependence on a single supplier and enhancing the resilience of its food security system.
Prime Minister Nikol Pashinyan described the corridor’s opening as unexpected but economically promising. He noted that cargo flows are already being redistributed and that the number of import requests along the Azerbaijani route is rising. The Armenian government is also considering the possibility of organizing reverse exports—from Armenia to Russia, Kazakhstan, and other Central Asian countries.
Since Armenia’s railway network is owned by Russia, the reopening of a short, direct overland connection without transshipment in Georgian ports benefits Moscow as well. For Russian Railways, the route promises new revenue, while Azerbaijan gains steady transit income and further consolidates its position as the South Caucasus’ central transport hub.
Russian Deputy Prime Minister Alexei Overchuk highlighted that direct railway communication between Russia and Armenia has been established for the first time since Armenia’s independence. He called the initiative “a tangible contribution to peace in the South Caucasus” and an illustration of how economic cooperation can lay the foundation for political trust.
Experts note that reopening the route through Azerbaijan creates new logistical horizons for all regional actors. Armenia gains direct access not only to Russia but also to Central Asia, effectively joining the Middle (Trans-Caspian) Corridor that connects China and Europe. Azerbaijan, in turn, strengthens its role as a vital transit bridge between East and West.
With increasing freight volumes and lower tariffs, the Azerbaijani route is becoming ever more attractive. As infrastructure development continues, part of the cargo that previously moved through Georgian ports will inevitably shift to this new line, where logistics are more reliable and cost-effective. A new transport map of the South Caucasus is taking shape—with Azerbaijan at its center. And, as practice shows, the road to lasting peace in the region often begins with the roads along which trains start to move.
