Growing role of Azerbaijan in SCO and regional integration efforts [COMMENTARY]

The evolving global geopolitical landscape underscores the increasing responsibilities of international organisations in fostering peace, stability, economic development, and socio-political equilibrium. Among these institutions, the Shanghai Cooperation Organisation (SCO) has gained prominence, assuming a pivotal role in both security and economic domains.

The SCO's stature has grown significantly in recent years, drawing heightened international attention. In 2015, Azerbaijan was granted partner status during the Council of Heads of SCO member states meeting, followed by the signing of a Memorandum in Beijing in 2016, officially designating Azerbaijan as a dialogue partner of the SCO. This acknowledgement underscores Azerbaijan's growing engagement and influence within the organisation.

President Ilham Aliyev's participation as an esteemed guest at the 2022 SCO Summit in Samarkand, Uzbekistan, further highlights Azerbaijan's deepening involvement and strategic importance within the SCO framework.

A discussion with Dr. Mehmood Ul Hassan Khan, an expert on China and Executive Director of the Centre for South & International Studies (CSAIS) Islamabad, in Azernews delved into the SCO's regional role and Azerbaijan's collaboration within the organisation. The expert also emphasised the significance of projects such as the North-South and East-West transport corridors, underscoring their integration into SCO cooperation efforts.

The international expert noted that Azerbaijan is the SCO's dialogue partner and now expects to receive observer status with the Shanghai Cooperation Organisation (SCO).

"Serving as a pivotal connecting transit hub along the Middle Corridor, Azerbaijan plays a significant role in advancing regional integration processes. The SCO summit scheduled for 2024 in Astana is expected to provide further momentum towards Azerbaijan's goal of achieving observer status within the organisation," he added.

According to him, during recently held meetings in 2024 & 2023, both sides discussed the prospects of cooperation between Azerbaijan and the SCO.

“Azerbaijan stressed that the country's cooperation with the SCO members contributed to Azerbaijan's active involvement in the organisation as well as conducting mutual dialogue. The government of Azerbaijan emphasised its commitment to working with the SCO on security matters and important infrastructure projects such as the East-West and North-South transport corridors,” the expert said.

“Moreover, Azerbaijan attaches great importance to its partnership with SCO, which has a special role in the Eurasian landscape. It also stressed the significance of exploring opportunities for cooperation in various sectors, including economics, trade, energy, investment, tourism, and ecology.

Historically, Azerbaijan achieved dialogue partner status within the SCO on July 10, 2015. A subsequent Memorandum signed in Beijing on March 14, 2016, marked a significant milestone.

Factually, Azerbaijan's membership in the SCO has opened up new opportunities for cooperation in such areas as strengthening regional security and stability, cooperation in the fields of trade and investment, energy, telecommunications, and agriculture, as well as the promotion of direct contacts between small and medium-sized businesses, interaction on legal and customs issues, etc.”

The Pakistani pundit stressed that in this regard, the Baku-Tbilisi-Kars railway, which is a part of the Middle Corridor, was built at the expense of Azerbaijan's investments and has a great role in the SCO's further drive for regional connectivity.

“Moreover, Azerbaijan has a unique role in the growing trade and transit cargo transportation within the Chinese Belt and Road Initiative, as well as the Trans-Caspian International Transport Route (TITR) or Middle Corridor.

It seems that President Aliyev’s participation in the Astana summit is significant, which will convey its commitments about the upcoming COP29 conference to be held in November 2024 in Baku.

During the bilateral meeting with Russian President Putin, President Ilham Aliyev noted progress in the development of the International North-South Transport Corridor (INSTC), the plans to modernise the infrastructure of the INSTC on the Azerbaijani territory, as well as the intention to implement new joint initiatives in the energy sector. Regional projects such as East-West and North-South corridors were also discussed,” Dr Mehmood Ul Hassan Khan said.

“Being a key transit hub, it is significant for the SCO member states to expand cooperation with Azerbaijan. It is investing billions of dollars in qualitative infrastructure development projects, including modern highways, expansion of port infrastructure, and modernization of railway lines, including the Baku-Tbilisi-Kars route. It is also independently creating the promising Zangazur route, a new value addition to the Middle Corridor.

Azerbaijan’s role is very significant in the transit of container block trains and will significantly reduce time. Critical analysis reveals that Azerbaijan’s strategic importance for the further expansion of SCO members is important because of the ongoing attacks in the Red Sea by the Houthi since last year. Houthi drone and missile attacks have greatly reduced the movement of bulk carriers, container ships, and tankers in the Red Sea and the Bab el-Mandeb Strait, and global carriers and forwarders are considering the short and safe trans-Caspian transit.

Additionally, cooperation with the SCO member states is also important for Azerbaijan to participate in investment projects, create joint production projects in the non-oil sector, develop renewable energy sources, etc.”

The Expert said that according to official figures, Azerbaijan's trade turnover with SCO member states in 2022-2023 increased by 45.8 percent, exceeding US$9 billion, and reaching 17 percent of Azerbaijan's total trade turnover in the previous year. In turn, the SCO member states have invested over US$12 billion in the Azerbaijani economy, while the Azerbaijani investments in the economies of these countries amounted to US$3.2 billion.

“Azerbaijan has investment cooperation with China, which currently ranks fourth among Azerbaijan’s foreign trade partners and second among importing countries. The Chinese companies intend to invest in localising the assembly of electric buses and batteries in Azerbaijan.

A project for the supply of liquefied natural gas to another leading SCO member state, Pakistan, was launched through the Azerbaijani SOCAR Trading Company. The bilateral Azerbaijani-Uzbek cooperation in the field of energy has also expanded. The State Oil Company of the Azerbaijan Republic (SOCAR) and Uzbekistan’s Uzbekneftgaz company signed several agreements on joint participation in oil and gas projects. The partnership with another SCO member state, Kazakhstan, in the oil transit and an increase in the transshipment of non-oil cargo have greatly increased since last year,” the expert concluded.