What do Azerbaijani-German relations represent?

By Sabina Alizade 

Azerbaijan has signed strategic partnership agreements with several European countries, establishing close collaborative relations with these nations. Germany is one of Azerbaijan's significant political and economic partners in Europe, and recently these relations have entered a new phase.

Azerbaijan attaches great importance to developing its relations with Germany. Being one of the world's economic giants, Germany's designation of Azerbaijan as a key partner in the post-Soviet area, especially in promoting economic relations, fosters the strengthening of bilateral cooperation. Currently, economic ties between Azerbaijan and Germany are developing with a positive dynamic.

Additionally, there are historical roots in relations between the Azerbaijani and German people. In the 19th century, a group of German families moved to the territory of Azerbaijan, playing a crucial role in the development of viticulture and winemaking, and contributing significantly to other sectors of the economy.

The development of economic relations between Baku and Berlin meets modern requirements. Germany shows interest in the Caspian region, especially in Azerbaijan's economic resources, provides financial support within the framework of the European Union, and participates in joint international projects. It is not coincidental that Germany has established a wider range of economic relations with Azerbaijan than with any other state in the region. This is evident in that, following Russia, the second Chamber of Foreign Trade of Germany in the CIS area was established only in Azerbaijan. Germany ranks eighth among the leading countries in Azerbaijan's foreign trade turnover. There are 249 German-invested companies registered in Azerbaijan in industries such as manufacturing, agriculture, transportation, construction, trade, and services. According to statistics, Germany has invested $53.4 million in Azerbaijan's oil and gas sector and $762.1 million in the non-oil sector, while Azerbaijan has invested $569.7 million in Germany.

To date, approximately 80 documents have been signed between the two countries, deepening cooperation in various sectors. Regarding inter-parliamentary relations, there is a working group on Azerbaijan-Germany inter-parliamentary relations in the National Assembly, and a Germany-South Caucasus group in the Bundestag. Offices of SOCAR, AZAL, ABB in Germany, and the German Society for International Cooperation in Azerbaijan are operational.

Twin city relationships have been established between the Azerbaijani cities of Baku and Sumgayit and Germany's Mainz and Ludwigshafen. Direct bilateral passenger transportation between Azerbaijan and Germany is facilitated through air transport. Azerbaijan Airlines operates flights on the Baku-Berlin route, and Germany's Lufthansa operates on the Frankfurt-Baku route. Freight transportations between the two countries are conducted by air, sea, and road.

Economic relations between the two countries are also developing. The high-level German-Azerbaijani Working Group on Trade and Investment was established on 5 May 2011. On 12 November 2012, the German-Azerbaijani Chamber of Foreign Trade was inaugurated in Baku.

Looking at the official statistics for March of this year, exports from Azerbaijan to Germany amounted to 239,368.01 thousand US dollars, representing 4.00% of total exports. Last month, imports from Germany to Azerbaijan stood at 181,670.21 thousand US dollars, accounting for 4.89% of the country’s total imports. Thus, in March 2024, the trade turnover between the countries stood at 421,038.22 thousand US dollars, which is 4.34% of Azerbaijan's total trade turnover.

From January to March of this year - the first quarter of the year - exports from Azerbaijan accounted for 33.2 percent, and imports - 66.8 percent. Non-oil and gas exports for January and February 2024 amounted to 4,317.2 thousand US dollars, of which 3,639.7 thousand were non-oil and gas products of Azerbaijani origin. There are prospects for boosting the trade turnover.

This year, Azerbaijan will host the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29). Berlin will continue to develop its political and economic relations with Baku, and German companies are interested in cooperating with Azerbaijan. Azerbaijan has expressed readiness to work with the German side in preparing for this global event.

News.Az