From Conflict to Trade: What the Fuel Transit Between Azerbaijan and Armenia Means?

    Azerbaijan has, for the first time in decades, exported fuel to Armenia by rail, marking an important practical step toward the normalization of economic relations between the two countries after years of conflict. On December 18, the state oil company SOCAR dispatched 22 railcars carrying more than 1,200 tonnes of AI-95 gasoline from a freight terminal in Baku to Armenia via Georgia. This shipment effectively represents the first instance since independence in which goods have crossed between the two countries for economic purposes, following the Azerbaijan–Georgia–Armenia route.

    The fuel shipment was carried out within the framework of agreements reached in late November in Gabala between representatives of the Armenian and Azerbaijani governments and is viewed by both sides as a practical demonstration of the opportunities opened up by the establishment of peace. Armenian Prime Minister Nikol Pashinyan noted that while the trade is being conducted by private companies, the political conditions enabling it were created by peace between the two countries, describing the move as an important sign of the resumption of economic ties.

    The delivery was positively received in Yerevan. Armenia’s Minister of Economy, Gevorg Papoyan, emphasized that this was not only the first commercial transaction following the peace agreements, but possibly the first such trade exchange since the independence of both states. As part of the process, Georgia provided preferential transit conditions, which facilitated the successful movement of the cargo, although the parties are expected to discuss transportation tariffs in the future – an issue that could affect further shipments.

    Against this backdrop, political dialogue between the two countries is also progressing. On December 21, at a meeting of the Supreme Eurasian Economic Council in St. Petersburg, Armenian Prime Minister Nikol Pashinyan publicly thanked Azerbaijani President Ilham Aliyev for the decision to unblock cargo transit through Azerbaijani territory and to create conditions for the launch of bilateral trade. He stressed that this step helps strengthen economic cooperation and opens up prospects for further interaction.

    Experts believe that such operations, although beginning with relatively modest shipment volumes, could over time contribute to the expansion of trade and transport integration in the South Caucasus and become one of the foundations for sustainable economic development in the region, provided that the peace process continues.


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    22.12.2025 06:02