Azerbaijan, Serbia expand strategic partnership through multifaceted coop

The warm relations between Azerbaijan and Eastern European countries are reflected in the ongoing multifaceted cooperation between Baku and Belgrade. This also encourages further strengthening of the West's trust and interests in Azerbaijan against the backdrop of growing global economic tension.

In this regard, Serbia is keenly interested in deepening its cooperative relations with Azerbaijan, and the bilateral relationship is evolving rapidly and dynamically.

Cooperation between the two nations is thriving on both bilateral and multilateral fronts. On the international stage, Azerbaijan and Serbia consistently support each other’s sovereignty and territorial integrity, and their joint initiatives within international organizations are actively considered. A significant milestone in their relationship was Belgrade’s early recognition of Azerbaijan’s independence, which has been a key factor in fostering and advancing their ties.

Bilateral relations between Azerbaijan and Serbia were formally established on August 21, 1997. The Embassy of the Republic of Azerbaijan in Serbia commenced its operations on June 8, 2011, while the Embassy of Serbia in Azerbaijan was inaugurated in February 2011. High-level visits by heads of state that have intensified in recent years have established a strong foundation for expanding and deepening cooperation between Azerbaijan and Serbia.

The Intergovernmental Commission on Trade and Economic Cooperation, established in 2011, is pivotal in advancing bilateral relations. The Commission’s seventh meeting was held in Serbia on April 28, 2023, followed by the eighth meeting on July 25, 2023. This latest session focused on the ongoing evolution of relations between the two countries, with a particular emphasis on economic ties.

Deputy Economy Minister Sahib Mammadov, speaking at the meeting, highlighted mutual investments between Azerbaijan and Serbia. He noted that from 1995 to the end of the first quarter of 2024, Serbia’s direct investments in Azerbaijan’s non-oil and gas sector amounted to 3.6 million US dollars. At the same time, Azerbaijan invested 2.8 million dollars in Serbia’s economy.

“Six Serbian companies have been registered in Azerbaijan, with four operating in agriculture, infrastructure, and services. Azerbaijan has invested 2.8 million US dollars in Serbia,” he stated.

Minister Mammadov also pointed out that trade turnover between the two countries has increased fivefold compared to last year.

“In the first half of this year, the trade turnover between Azerbaijan and Serbia grew more than five times compared to the same period last year, reaching 30.9 million US dollars,” he added.

He encouraged new cooperation and invited Serbian pharmaceutical companies to operate in Azerbaijan’s industrial zones. He also expressed high expectations for the Alat Free Economic Zone: “The Baku International Sea Trade Port, located near the Economic Zone, aims to handle a larger share of the growing cargo volume between Asia and Europe. Additionally, the strategic location of the Baku Shipyard near the port makes it a modern center for shipbuilding and repair, facilitating cargo and passenger transport within the Caspian Basin. We invite Serbian investors to consider cooperation with Azerbaijan.”

Minister Sahil Babayev emphasized that several Serbian companies are actively operating in Azerbaijan and stated that the main goal is to transform Azerbaijan into a center of green energy and the Fourth Industrial Revolution. He also expressed a desire for Serbian companies to participate in construction projects in the liberated territories and invited Serbian colleagues to COP29.

Ms. Andrea Horvat Kralj, State Secretary of the Ministry of Economy of Serbia, mentioned that informing Azerbaijani investors about investment opportunities in Serbia could significantly contribute to the development of cooperation. She suggested providing detailed information about Serbia’s investment environment, future projects, and potential areas to increase investor interest and emphasized the need for concrete steps to strengthen economic ties between the two countries.

Energy cooperation is a crucial aspect of elevating bilateral relations to a new level. In this context, Azerbaijan and Serbia signed two significant documents in November of last year: the "Memorandum of Understanding between the Ministry of Energy of the Republic of Azerbaijan and the Ministry of Mining and Energy of the Republic of Serbia on the Promotion of Cooperation between SOCAR and Srbijagas," and the "Agreement on Gas Sales between SOCAR and Srbijagas."

These strategically important agreements have opened new opportunities for cooperation. For the first time, a foundation for multifaceted cooperation in the gas sector was established, including the supply of gas from Azerbaijan to Serbia. As a result of the annual delivery of up to 400 million cubic meters of gas, Serbia has become a new partner of Azerbaijan in diversifying the European gas market. This volume is expected to increase in the coming years.

In addition to gas supply, the Memorandum of Understanding covers LNG supply to Serbia, collaboration with SOCAR in gas storage, and exploration of the company’s participation in gas trading operations, as well as the construction of a gas-fired power plant. These agreements signify Azerbaijan's growing role as a reliable energy partner and its increasing contribution to energy security. They also lay the groundwork for long-term gas supply partnerships and further Azerbaijan's involvement in Serbia's energy security.

Beyond diversifying Serbia’s supply sources, Azerbaijani gas enhances Serbia’s strategic role as a transit country for distributing gas to Central Europe. There are future prospects for delivering Azerbaijani gas to Central European countries through Serbia. Additionally, Serbia is exploring the potential of joining the Black Sea submarine cable project, which would facilitate the export of electricity from Azerbaijan to Europe.

Deputy Minister of Energy of Azerbaijan, Kamal Abbasov, addressed this topic at the 8th meeting of the Intergovernmental Commission, noting that work on the "Caspian-Black Sea-Europe Green Energy Corridor" project, involving Azerbaijan, Georgia, Romania, and Hungary, is ongoing. “The next meeting in this direction is planned for Bucharest in September. We aim to complete the project's technical and economic justification by the end of 2024, and we expect to establish a joint venture headquartered in Bucharest by September 2024. Serbia's participation in this project will be mutually beneficial,” the deputy minister added.

Cooperation between Azerbaijan and Serbia is also anticipated in the field of renewable energy. Both countries aim to increase the share of renewable energy sources to 30% by 2030, and exporting this green energy to Serbia is part of the agenda.

Minister of Labor and Social Protection of the Population, Sahil Babayev, emphasized that the green energy corridor is a significant focus for Azerbaijan. “Our country has a green energy potential of over 150 GW. Our goal is to provide this energy to European markets. We also plan to export Azerbaijan’s green energy to Serbia soon,” he said.

Green energy issues have gained prominence in recent years. In June 2022, during the Baku Energy Week, Azerbaijan and Serbia signed an Agreement on cooperation in the fields of energy and mining. This agreement aims to optimize the use of both countries' energy and natural resources and includes promoting mutual investments in the energy sector, particularly in natural gas and renewable energy sources, as well as mineral exploration, regulatory measures, energy efficiency, and the creation of joint ventures. The agreement also supports the continued implementation of the Southern Gas Corridor.

Upon signing the agreement, Energy Minister Parviz Shahbazov remarked, “The use of Caspian Sea wind energy is of interest to investors, and the forthcoming agreement in this area will enhance the export opportunities for 'green' electricity.”
Within international organizations, representatives from Azerbaijan and Serbia consistently demonstrate a united stance on fundamental issues. A notable example is Serbia’s support on March 14, 2008, for Azerbaijan’s resolution project titled "On the Situation in the Occupied Territories of Azerbaijan," during a UN General Assembly vote.

The role of the parliaments in strengthening bilateral relations should also be highlighted. Friendship groups operate within the parliaments of both countries, and mutual visits by the Speakers of Parliament, as well as other heads of state and government, are expected to further enhance cooperation.

The expanding cooperation between Azerbaijan and Serbia is also evident in the growth of economic relations. Both countries are interested in collaboration across various sectors, including agriculture, air transport, tourism, medicine, and transport infrastructure.

A significant example of strategic relations between the two countries is the establishment of twinning relations between the cities of Shusha (Azerbaijan) and Novi Pazar (Serbia) on March 17, 2023. This was accompanied by the signing of a Memorandum of Understanding covering cooperation in culture, tourism, urban planning, science, economy, and other public life areas.

The meeting also highlighted the visa-free regime between Azerbaijan and Serbia and discussed implementing direct flights to further enhance tourism relations. Serbian Minister of Culture and co-chairman of the Intergovernmental Commission, Nikola Selakovic, emphasized the importance of resolving this issue by the end of the year, noting that it could significantly benefit business relations as well.

Educational cooperation is another area of mutual interest. The Center for Azerbaijani Language and Culture at Belgrade University and the Center for Serbian Language and Culture at Azerbaijan University of Languages facilitate cultural exchange. Additionally, Serbian diplomats participated in the Foreign Policy Program at ADA University in 2019 and 2023. Humanitarian cooperation is also notable. In 2011, a monument to Azerbaijan's National Leader Heydar Aliyev was unveiled in Tasmaydan Park in Belgrade, and a bust of Azerbaijani composer Uzeyir Hajibeyli was unveiled in Novi Sad. In 2013, a monument to Serbian scientist Nikola Tesla was unveiled in Baku.

In conclusion, the growing cooperation between Azerbaijan and Serbia reflects a deepening and multifaceted partnership. The strong foundation built through diplomatic, economic, and cultural engagements continues to enhance their bilateral relations, setting the stage for further collaboration and mutual benefit.