Baku-Belgrade ties open up new horizons for deepening economic partnership

In recent years, Azerbaijan and Serbia have significantly improved their bilateral relations, elevating them to a new level of partnership. This development has been characterized by active efforts to strengthen both economic and political ties, leading to mutually beneficial cooperation between the two nations.

The strategic partnership between Azerbaijan and Serbia, officially recognized in 2013, is grounded in stable, friendly ties based on mutual respect, understanding, and support. This relationship is notably robust on a political level, with both countries sharing similar foreign policy principles and positions. Serbia and Azerbaijan both pursue independent, neutral foreign policies, with a strong emphasis on preserving territorial integrity and sovereignty. This shared stance is reflected in Azerbaijan's unwavering support for Serbia's position on Kosovo, a critical aspect of Serbia's national interest and foreign policy.

Despite the strong political relationship, economic cooperation between Azerbaijan and Serbia has room for growth. Both nations recognize this and are working towards enhancing their economic interactions. The upcoming session of the joint Intergovernmental Commission for Trade and Economic Cooperation in Baku is expected to focus on key areas such as energy, transport, construction, trade, and defense. One of the priorities is establishing a direct flight between Belgrade and Baku to facilitate greater interaction across various sectors.

Currently, there is limited investment between the two countries. Azerbaijan offers investment opportunities within its Free Economic Zones and projects in liberated territories, while Serbia presents possibilities in agriculture, construction, modern technologies, and defense. Azerbaijani construction company AzVirt's involvement in Serbian road infrastructure projects, amounting to one billion USD, exemplifies the potential for economic collaboration. Conversely, Serbian companies are keen to participate in the reconstruction of Azerbaijani liberated lands, although more information on planned projects and application processes is needed to facilitate this engagement.

Energy security is a significant aspect of the Azerbaijan-Serbia partnership. Serbia's agreement with SOCAR for the import of Azerbaijani gas represents a critical diversification of its energy supply. This agreement, which currently allows for the import of 400 million cubic meters of gas per year with potential increases, underscores the importance of Azerbaijani energy resources in Serbia's national security strategy. Additionally, there are discussions about LNG cooperation, SOCAR's participation in constructing a gas-fired power plant, and Azerbaijani investment in new gas storage infrastructure in Serbia.

Cultural and educational exchanges between Azerbaijan and Serbia further strengthen their bilateral relationship. Both countries emphasize traditional family values, tolerance, and multiculturalism, which provide a strong foundation for cultural cooperation. Notable initiatives include the sister city relationship between Shusha and Novi Pazar and the establishment of language centers in each country. Serbia's "World in Serbia" scholarship program also facilitates educational exchanges, providing opportunities for Azerbaijani students to study in Serbia.

Despite their commitment to military neutrality, both Azerbaijan and Serbia recognize the importance of a strong defense capability in the face of global security challenges. Their defense cooperation includes trade in defense industry products, joint production, and technology transfer. The establishment of Defense Attache Offices in Belgrade and Baku and high-level visits between defense officials highlight the active and growing military-technical cooperation between the two countries.

The Azerbaijan-Serbia partnership is a multifaceted relationship that extends beyond political alignment to include significant economic, cultural, educational, and defense cooperation. While there is room for growth in economic interactions and investments, the solid political foundation and mutual respect between the two nations provide a promising basis for continued and expanded cooperation. As both countries navigate the complexities of international relations and security, their partnership serves as a model of mutually beneficial collaboration grounded in shared values and interests.