OMM Newsroom
Azerbaijan and Georgia aim to increase bilateral trade to more than $2 billion by strengthening their energy partnership, expanding transport links and exploring new investment opportunities.
Azerbaijan’s ambassador to Georgia, Faig Guliyev, announced the goal at a roundtable in Tbilisi on October 19, AnewZ reported. He said trade between the two countries reached $1.4 billion in 2025.
Speaking at the event, titled “Georgia-Azerbaijan: Strategic Partnership and a Common Future,” Guliyev highlighted the countries’ economic potential and their intention to expand trade ties. Based on the figure he cited for 2025, trade would need to grow by about 43% to reach $2 billion. No timeframe has been set for achieving the target.
Baku and Tbilisi are also deepening cooperation in natural gas, electricity, railway infrastructure and oil transportation.
Trade reached $887.95 million in the first nine months of 2026
According to official Azerbaijani figures, merchandise trade with Georgia increased by 15.8% between 2021 and 2025, reaching $881.3 million. The State Statistics Committee said exports to Georgia accounted for most of the trade during that period.
The latest data from Azerbaijan’s State Customs Committee show that trade between the two countries totaled $887.95 million in January-September 2026. Azerbaijan exported $757.49 million worth of goods to Georgia, while imports amounted to $130.46 million. Azerbaijan’s trade surplus was therefore about $627 million.
Over the nine-month period, Azerbaijan’s exports to Georgia were about six times higher than its imports. However, Guliyev’s figure of $1.4 billion for 2025 differs from Azerbaijan’s official merchandise trade statistics. The discrepancy may be related to reporting methods or statistical definitions, but it has not yet been clarified.
Cooperation on energy and green projects expands
In May 2026, Azerbaijan and Georgia issued a joint communique covering agreements on natural gas supplies, electricity trade and transit, and oil transportation infrastructure.
The plans include Azerbaijan supplying electricity to Georgia and its onward transmission through Georgian territory to Türkiye. A separate intergovernmental framework envisages long-term electricity cooperation between Azerbaijan’s state energy company SOCAR and Georgian energy operators.
The document allows companies to conclude 20-year contracts for electricity supply and transit starting in January 2027. Long-term natural gas agreements are also planned, which would strengthen Georgia’s position both as a market for Azerbaijani energy and as a key transit route.
The May communique set October 15, 2026, as the deadline for finalizing commercial agreements. It has not been confirmed that all contracts have been signed. The agreements could increase bilateral trade, but their potential contribution to the $2 billion target remains unclear.
Guliyev also spoke about renewable energy projects that could attract a total of $6 billion to $7 billion in investment across the two countries. The plans are intended to extend energy cooperation beyond traditional oil and gas infrastructure. The ambassador did not identify the projects to be financed, say whether investment commitments had been secured or specify when implementation would begin. The amount therefore remains a projection, not confirmed financing.
Middle Corridor and railway links
Another key area of cooperation is the Middle Corridor, which connects Asia and Europe via the South Caucasus and the Caspian region. Azerbaijan and Georgia have announced the completion of modernization work on the Baku-Tbilisi-Kars railway, a major transport link connecting Azerbaijan, Georgia and Türkiye.
The two countries are seeking to strengthen regional connectivity and increase trade flows by making use of their strategic geographic positions. Viktor Kipiani, chairman of Georgia’s Geocase think tank, said deeper cooperation could improve the South Caucasus’ economic competitiveness and development prospects, according to AZERTAC. He also highlighted opportunities for closer ties as conditions in the region evolve.
Improvements to rail and other transport infrastructure could generate additional commercial activity. However, goods transiting through the two countries are not necessarily included in bilateral merchandise trade statistics.
The latest trade figures reflect the scale of economic ties between Azerbaijan and Georgia, as well as the dominance of Azerbaijani exports in bilateral merchandise trade. Further growth will depend on whether energy agreements become signed contracts and translate into higher trade volumes, as well as on new investment. There is currently no official timetable for reaching the $2 billion target.
Expanded energy cooperation, upgraded railway links and planned green investments could contribute to economic development in both countries and strengthen their regional trade partnership.
