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Nazrin Abdul

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The recent visit of the President of the Federal Republic of Germany, Frank-Walter Steinmeier, to Azerbaijan marks an important milestone in the growing relationship between these two countries. Germany has long been one of Azerbaijan's most vital political and economic partners in Europe, and this high-level visit serves as a reflection of the expanding scope of bilateral ties, especially in areas of trade, energy, and regional peace-building. The discussions between President Steinmeier and Azerbaijani President Ilham Aliyev underscore the evolving nature of this strategic partnership and its broader implications for regional and global cooperation.

Strengthening economic ties: A natural evolution

The economic ties between Germany and Azerbaijan have been on an upward trajectory in recent years. President Aliyev’s remarks during the visit highlighted the impressive increase in trade turnover between the two countries, which saw a nearly threefold expansion in the first two months of this year. This is not only a testament to the effectiveness of Azerbaijan’s economic policies but also an indicator of the growing economic integration between Azerbaijan and one of the EU's largest and most influential economies.

Azerbaijan’s economic diversification strategy, which has historically been reliant on its oil and gas exports, has increasingly focused on sectors such as renewable energy, infrastructure, and technology. Germany’s economic expertise, particularly in sustainable industries, is a natural complement to Azerbaijan’s ambitions to modernize and diversify its economic base. The renewed emphasis on green energy cooperation, as articulated by both leaders during their talks, is a prime example of this alignment.

Azerbaijan's significant strides in diversifying its energy mix are becoming increasingly apparent. Despite being traditionally an oil and gas powerhouse, Azerbaijan is now positioning itself as a key player in the global shift towards renewable energy. President Aliyev’s announcement that Azerbaijan plans to increase its renewable energy capacity to 6 gigawatts by 2030 reflects the country's commitment to becoming a regional leader in green energy. This ambitious target presents numerous opportunities for collaboration, particularly with Germany, which has long been a trailblazer in the global transition to clean energy.

Germany’s experience in solar and wind energy, as well as its leadership in energy efficiency and climate policies, offers Azerbaijan an invaluable opportunity for technology transfer and expertise. Furthermore, the ongoing projects to establish green energy corridors linking Azerbaijan to Europe and Central Asia — including the energy cable passing through the Caspian Sea and under the Black Sea — will not only strengthen energy security for all involved but also position Azerbaijan as a crucial player in the future of European energy markets. These initiatives are in line with the global trend of rapidly increasing investments in renewable energy, projected by the International Energy Agency (IEA) to account for 80% of global electricity production capacity by 2030.

The convergence of Azerbaijani and German energy strategies presents a unique opportunity to address two critical global challenges: sustainable energy and regional geopolitical stability. As President Aliyev rightly pointed out, successful implementation of these projects requires robust cooperation not just between Azerbaijan and Germany, but also among neighboring countries. This approach embodies the core principle of energy diplomacy — that regional cooperation in energy development can promote mutual benefits and pave the way for broader regional integration.

Azerbaijan’s pursuit of peace: Germany’s support in regional stability and diplomacy

In his speech, President Ilham Aliyev also highlighted the productive cooperation between Azerbaijan and Germany during the COP29 climate conference, which Azerbaijan hosted last year. He emphasized the active collaboration with Germany in the context of the conference, noting that over 77,000 participants from 197 countries registered for the event. President Aliyev characterized the conference as a significant success, reflecting the joint efforts to address global climate challenges.

However, he also expressed regret that Armenia was the only country to boycott such an important international event. "This naturally causes regret," President Aliyev remarked, adding that the boycott was particularly puzzling given the positive momentum in the normalization process between Azerbaijan and Armenia. He pointed out that, especially in the current context, it was incomprehensible for Armenia to refuse participation in such a globally significant gathering. The President also made it clear that Azerbaijan had conveyed its concerns about this issue to the German side.

The head of state further reflected on the historical context of the Azerbaijan-Armenia conflict, noting that Azerbaijan had endured 30 years of occupation and ethnic cleansing, with over a million Azerbaijanis displaced and nearly 20 percent of the country’s territory under occupation. He lamented that international organizations had not taken substantial steps to address this issue. However, Azerbaijan itself resolved the conflict, both on the battlefield and at the political level, marking a historic victory that paved the way for peace negotiations. President Aliyev expressed confidence that the positions of Azerbaijan and Armenia in the pursuit of peace were now much closer than before, highlighting the constructive steps taken by both sides.

German President Frank-Walter Steinmeier, in turn, acknowledged the importance of the peace process, praising the significant progress made over the past year. "As an outside observer, I can say that this has impressed us greatly," Steinmeier stated, commending the steps taken by both Azerbaijan and Armenia. He congratulated both countries on the agreement reached on March 13 regarding the peace agreement text. Steinmeier expressed hope that this moment would serve as a turning point, leading to the signing of a lasting peace agreement in the near future. He emphasized that although challenges remained, the political will for compromises was crucial to ensuring the success of the peace process.

Moreover, President Steinmeier pointed out that the conclusion of a peace agreement would not only stabilize the region but also open up new economic opportunities. "Your country plays a critical role in our trade relations, not just with Central Asia, but also with the Far East, Southwest Asia, and China. The existing trade routes are currently limited, but the role of the Central Corridor passing through Azerbaijan is crucial for the German economy. This presents a promising prospect for both countries," he said. Steinmeier further stressed that a more stable South Caucasus would present a significant opportunity for economic growth and cooperation, contrasting the current situation with the unstable relations of the past.

In conclusion, the remarks of both leaders underscored the importance of maintaining momentum in the peace process. Should both sides, particularly Armenia, be willing to engage in peace efforts, it would not only benefit Azerbaijan and Armenia but also contribute to the stability and prosperity of the entire region. As Germany’s support for the peace process continues, the potential for long-term regional development and cooperation in energy, trade, and security becomes increasingly apparent.