Tehran-Azerbaijan’s foreign policy is characterized by a strategic balance between major global power and its neighbours in the region. This approach allows Azerbaijan to maintain its independence and use its geopolitical position as leverage.
The country’s foreign policy is shaped by its energy resources, strategic locations, historical conflicts, particularly the Nagorno-Karabakh issue. The relationship between Azerbaijan and its western, Russia and its neighbors is complex and multifaceted, reflecting a practical view of diplomacy and economic cooperation.
Azerbaijan’s foreign policy has focused on reestablishing territorial integrity, particularly in regards to the Nagorno-Karabakh conflict with Armenia, since it gained independence from the Soviet Union in 1991. National leader Heydar Aliyev began pursuing foreign policy based on the principles of national sovereignty, secularism and balance of international relations.
President Ilham Aliyev focuses on independence in diplomacy, refuses to receive direction from outside parties, and continues this effort to promote Azerbaijan as the center of regional cooperation and peace.
Energy diplomacy, security modernization and diplomatic balance are three main factors in Azerbaijan’s foreign policy.
Azerbaijan is working hard to become a reliable energy supplier in Europe by using its resources and investing in renewable energy. On the military side, we want to build strong, independent defenses with the support of our key partners.
Diplomatically, Baku is trying to balance the relationship between Russia and the Western countries, while maintaining a close partnership with Türkiye. This balanced strategy aims to increase Azerbaijan’s independence, promote regional cooperation, and improve stability in the South Caucasus.
Energy, pragmatism, and political friction with the West
Azerbaijan is working hard to position itself as a reliable source of energy in Europe, focusing on renewable energy and the energy transition. On the military front, the country aims to strengthen its strength with the help of its major allies.
Diplomatically, Baku maintains a strong partnership with Turkey, balancing its relationship with Russia and engages with the West. This approach not only increases Azerbaijan’s independence, but also sets the stage for increased regional cooperation and stability in the South Caucasus.
The energy supply in Azerbaijan plays an important role in relations with the West. Important projects such as the Baku-Tbilisi-Ceyhan Oil Pipeline and the Southern Gas Corridor reduce Europe’s dependence on Russian energy, making Azerbaijan more strategically valuable.
In July 2022, the EU and Azerbaijan agreed to double gas exports to Europe by 2027 as part of their efforts to diversify energy sources following the Ukraine crisis. European Commission Chairman Ursula von der Leyen said Azerbaijan is a key partner in our energy security. According to reports, Azerbaijangas accounted for around 5% of EU imports in 2023, with further growth plans.
Azerbaijan is not part of NATO, but has sent troops to seek help on missions like Afghanistan. Although they maintain good relations with NATO through their partnership for peace, they are careful not to get too close to the West due to tensions between Russia and Iran.
As for the US, their relationship is pretty practical. The US appreciates Azerbaijan’s energy and counter-terrorism efforts, but there have been some conflicts due to issues of human rights and democracy. Groups such as Freedom House and Human Rights Watch often criticize Azerbaijan’s policies, but these concerns do not carry over their arguments.
Azerbaijan’s economic and military relations with Russia
Russia is an important partner in Azerbaijan, but the relationship is complicated. In 2023, two-man trade reached over $4 billion, with Russia’s Azerbaijan becoming the second largest trading partner after Turkey.
There will also be military cooperation in Azerbaijan purchasing advanced weapons from Russia. However, in recent years they have been searching for Türkiye and Israel for supplies.
Azerbaijan is cautious about Russia’s political influence. Unlike Armenia, Azerbaijan does not participate in organizations such as the collective security treaty body or the Eurasian Economic Union.
The 2020 Nagorno-Karabakh War changed things. Azerbaijan won decisively with the help of Turkish and Israeli drones, changing the balance of the region. However, Russia returned by brokering a ceasefire and sending 2,000 peacekeepers into the region.
Their presence is intended to stabilize things, but it also gives Russia some leverage to both Baku and Yerevan. Azerbaijan emphasizes that Russian peacekeepers are temporarily there in accordance with the ceasefire agreement.
The war in Ukraine added another layer of complexity. Azerbaijan remains neutral and does not completely condemn Russia’s actions. Still, they are providing humanitarian aid to Ukraine, involved in postwar reconstruction efforts, demonstrating their support for Kiev while not letting Moscow get confused.
Bridges and boundaries in relationships with neighbors
Azerbaijan focuses primarily on building strong relationships with Iran and Turkish neighbors, taking into account historical, cultural and economic factors. Recently, relations with Iran have been supported through high levels of visits and more economic cooperation, indicating that both countries are interested in stability and trade in the region. Iran considers Azerbaijan to be an important partner. Both are seeking to collaborate more among the broader geopolitical challenges, especially given the sharing of culture and religion.
Turkey is an important ally to Azerbaijan, sharing close political, military and energy ties. Their teamwork is evident in mutual support between joint energy projects and local issues. Azerbaijan also uses its relationship with Turkey to increase its influence in the Middle East and elsewhere, and use diplomatic efforts to connect with other countries.
Meanwhile, its relationship with Armenia remains tense due to the Nagorno-Karabakh conflict. Nevertheless, recent diplomatic movements and EU engagement may have a cautious step towards normalization. Armenian attempts to engage with Russia reflect on the ongoing regional power struggles, especially as tensions with Azerbaijan grow.
Azerbaijan’s foreign policy is to balance the increasingly divided world. By using its energy resources wisely, forming strategic alliances and responding to its diplomacy, Baku has made great strides in maintaining its sovereignty, territorial integrity and relevance on the international stage.
Still, the challenges are ahead. The future of Nagorno-Karabakh is uncertain, regional peace is weak, and competition is escalating between Russia and the West along with enduring tensions with Iran. How well does Baku manage these challenges without relying too much on one side for his role as a power broker in the South Caucasus region?
For now, Azerbaijan’s foreign policy reminds us of both the opportunities and dangers faced by small countries in today’s complex world.