The official meeting between the Presidents of Azerbaijan and Kazakhstan has become one of the key milestones in the evolution of Caspian cooperation. The agreements signed during the visit marked the transition of bilateral relations into a new phase of strategic interaction centered on energy, transport, and digital infrastructure.
One of the central directions of this cooperation is the expansion of the Baku–Tbilisi–Ceyhan (BTC) oil pipeline. For Azerbaijan, this route holds not only economic but also strategic importance. Having invested significant resources in its construction, Azerbaijan is now reaping long-term returns. The transit of Kazakh oil through Azerbaijani territory ensures stable revenues and strengthens Azerbaijan’s role as a critical logistics hub between Central Asia and Europe.
In 2023, approximately 3.4 million tons of Kazakh oil were transported via the BTC pipeline, and by 2027, this figure is expected to rise to 7 million tons. This steady growth underscores the resilience of the energy partnership and the strategic importance of the Caspian basin in the emerging architecture of Eurasian energy security.
The expansion of BTC is part of a broader regional transformation. Cooperation with Kazakhstan enhances Azerbaijan’s position as a regional energy and transit center, establishing a framework for the integration of energy, transport, and digital flows. Beyond direct economic gain, this partnership represents a foundation for long-term geo-economic stability and reinforces Azerbaijan’s relevance in the system of Eurasian interdependence.
In parallel, both sides have agreed on the development of new infrastructure projects — including the construction of a deepwater power cable and fiber-optic lines across the Caspian Sea. These initiatives create the technological basis for the future: Azerbaijan is evolving into a multifunctional energy and digital corridor linking East and West. Such infrastructure will open new opportunities for investment, employment, and innovation, laying the foundation for a gradual shift from a resource-based economy to a knowledge-based one.
A particularly significant component of this partnership is the transit of Kazakh uranium through Azerbaijani territory, which reshapes global energy supply chains, reduces Europe’s dependence on traditional transit routes, and strengthens supply security for strategic materials. For Azerbaijan, this is not only an economic project but also a step toward consolidating its political weight within the new framework of European energy security.
Energy cooperation between the two nations rests upon the 2018 Convention on the Legal Status of the Caspian Sea, which delineates maritime borders, permits the laying of pipelines and cables under strict environmental safeguards, guarantees the freedom of transit, and prohibits the presence of non-Caspian military forces. There are no unresolved maritime delimitation issues between Azerbaijan and Kazakhstan — all relevant agreements were concluded during the 1990s and 2000s — providing a solid legal basis for ongoing collaboration.
Energy cooperation is closely accompanied by an expanding trade relationship. Over the past five years, bilateral trade turnover has increased fivefold, surpassing $500 million. In 2023, total trade volume reached $533 million (+15% compared to 2022), while in January–August 2025 it has already amounted to $547 million, tripling last year’s figure. If current trends continue, trade is expected to reach $800 million by the end of the year and exceed $1 billion in the medium term.
Kazakhstan exports metals, oil, and grain to Azerbaijan, while Azerbaijan exports pipes, aluminum, and food products to Kazakhstan. Kazakhstan also plans to expand its export portfolio by 130 new product categories, enabling greater diversification of bilateral trade and the creation of joint production capacities. To stimulate this process, both sides are establishing joint investment funds focused on industrial, technological, and infrastructure development.
Despite the absence of a common land border, this logistical gap is being effectively addressed through the modernization of maritime and rail infrastructure and the implementation of digital trade solutions. The Digital Trade Corridor project, actively promoted by both governments, integrates transit, customs, and logistics processes into a unified digital system.
A cornerstone of this partnership is the development of the Middle (Trans-Caspian) Corridor, linking China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Türkiye. In a time of shifting global logistics and sanctions-related realignments, this route is gaining strategic weight. Cargo volumes along the corridor have grown by more than 60% in two years — from 3.2 million tons in 2022 to 4.5 million tons in 2024.
In 2025, the partners plan to establish a single operator for the Trans-Caspian route, expand the ports of Aktau (Kazakhstan) and Alat (Azerbaijan), and digitalize and harmonize customs procedures. This approach reflects a relationship built on synergy rather than competition, where the success of one partner directly enhances the potential of the other.
The dynamics in the energy sector also remain strong. In the previous year, approximately 1.5 million tons of Kazakh oil were transported through the BTC pipeline, while the current figure has already reached 1.7 million tons. Kazakhstan’s intention to scale this volume up to 7 million tons highlights the long-term potential of the partnership and consolidates Azerbaijan’s status as one of Eurasia’s key energy and transit hubs.
Bilateral cooperation between Azerbaijan and Kazakhstan has thus acquired a systemic and multidimensional nature. It now encompasses energy, transport, digital infrastructure, trade, and innovation — forming a new axis of Eurasian integration centered around the Caspian. Within this emerging architecture, Azerbaijan is not merely a transit bridge but a strategic integrator ensuring the region’s stability and interconnectedness.
As a result, a new logic of Caspian partnership is taking shape — one in which infrastructure becomes an instrument of geopolitical stability, and energy serves as a driver of technological and economic modernization. Azerbaijan and Kazakhstan are moving beyond mutually beneficial trade toward the creation of a sustainable regional development platform, capable of shaping the contours of Eurasian energy and transport security for decades to come.
