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Caspian cooperation rising as new opportunities in trade & energy flow from Ashgabat

Azerbaijani President Ilham Aliyev has embarked on a working visit to Turkmenistan, a move seen as another step in strengthening bilateral ties with Ashgabat. This is the first high-level reciprocal visit in a long time, following Gurbanguly Berdimuhamedov’s earlier trip to Azerbaijan. Unlike previous exchanges that carried little public information, this visit signals more concrete prospects for expanded cooperation between the two Caspian neighbours.

While past contacts were often limited in scope and not tied to concrete agreements, the current visit carries broader regional significance. Against the backdrop of shifting energy routes, growing importance of the Middle Corridor, and debates around Turkmenistan’s long-standing neutrality, the meeting between the two leaders signals that bilateral relations are entering a more pragmatic and multidimensional stage.

Economic expert Eldeniz Amirov shared his thoughts with Azernews on the significance of the visit and the broader context of Azerbaijan–Turkmenistan relations:

"The development of Azerbaijan-Turkmenistan relations in the context of Turkmenistan's 'neutral' position requires special work and professional policy. The working visit of Azerbaijani President Ilham Aliyev to Turkmenistan once again shows that our country is taking consistent steps to further deepen cooperation with Ashgabat. Despite Turkmenistan's international legal 'neutral' status, we are interested in expanding relations in both the political and economic spheres. In 2023, bilateral trade turnover reached a record level - about $774 million. In 2024, this figure stabilised at $383.7 million, and in the first half of 2025, it amounted to $140.2 million.

Energy cooperation is also noteworthy: the gas 'swap' mechanism implemented through Iran since 2021 has entered a new stage, extending to Turkiye from March 2025. Transit volumes of oil of Turkmen origin via the Baku-Tbilisi-Ceyhan pipeline are also increasing steadily. In addition, the Baku-Turkmenbashi ferry and railway line, the enhanced capabilities of the Turkmenbashi port, as well as the Trans-Caspian digital projects, make the two countries important partners in the Middle Corridor and the Lapis-Lazuli corridor.

The agreement on the 'Dostlug' field, signed in 2021, has removed a long-standing political obstacle and opened up new joint opportunities in the Caspian Sea. Turkmenistan has maintained its permanent neutral status, recognised by the UN since 1995. The continuity of this position keeps the country out of military blocs. However, current realities show that it may be beneficial for the Organisation of Turkic States and the entire integration processes of the region for Turkmenistan to reconsider its position. I believe that Azerbaijan’s consistent initiatives in this direction will have a positive effect. Close cooperation with Turkmenistan serves both bilateral economic interests and contributes to the strengthening of the Organisation of Turkic States and the closer integration of Central Asia into the Caucasus. At the same time, Turkmenistan is a key player in the greater benefit of the Zangazur Corridor to the Caucasus, and this factor will play a major role."

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