From 19 to 21 February, Azerbaijani President Ilham Aliyev visited Italy where he met with Italian President Sergio Mattarella, Prime Minister Giuseppe Conte, President of the Senate Maria Elisabetta Alberti Casellati, as well as with the heads of the largest companies in Italy. 

During the meeting with Conte, over 20 agreements were signed, with the most important being the “Joint Declaration on Strengthening Multidimensional Strategic Partnership“ which would raise the bilateral relations between Azerbaijan and Italy to a higher level.

Aliyev and Conte pointed out that the two countries were successfully cooperating in the energy sphere, stressing that this year the TAP project, the last segment of the Southern Gas Corridor, entered its final phase. It was also noted that the Italian companies were actively involved in the development of the non-oil sector and diversification of Azerbaijan’s economy. 

The sides also discussed cooperation between Azerbaijan and Italy in the fields of science, education, student exchanges and tourism. It was noted that Italy declared 2020 the Year of Azerbaijani Culture and an Azerbaijan cultural centre is planned to open in the country.

During the meeting with Mattarella, the issue on the Nagorno-Karabakh conflict was discussed. The two presidents stated that Italy and Azerbaijan respect and support territorial integrity, each other's sovereignty, and inviolability of borders. At the same time, the need to resolve the Armenian-Azerbaijani Nagorno-Karabakh conflict is indicated precisely on the basis of these principles, the Helsinki Final Act, and resolutions adopted by the UN and OSCE.

Aliyev also stated that the Armenian approach to the conflict doesn't reflect reality. “Once the Armenian leader [Nikol Pashinyan] said that Nagorno-Karabakh is Armenia. Then he said that Nagorno-Karabakh is independent. That doesn’t reflect reality. Nagorno-Karabakh is Azerbaijan. This is evidenced by the history, norms and principles of international law. The territorial integrity of Azerbaijan, including Nagorno-Karabakh, is recognized and is accepted by the whole world. Therefore, the settlement of the conflict is possible only on the basis of the norms and principles of international law, within the framework of the territorial integrity of Azerbaijan,” he said.

Aliyev also had a working dinner with the President of “Cassa Depositi e Prestiti SpA”, the largest Italian financial and banking institution Giovanni Gorno Tempini and the other heads of Italy’s largest companies.

“Our turnover last year reached almost 6 billion euros, but there was a very big imbalance here. Our export to Azerbaijan totalled less than half a billion. And our task is to try to eliminate this imbalance and, if I may say so, to make boomerang investments,” Tempini told Aliyev.

“I can say that Italian companies signed contracts worth about $10 billion only for the energy sector of Azerbaijan and energy projects funded outside of Azerbaijan. In the non-oil sector, this figure is approximately $700 million. Yes, I agree that there is a big imbalance in our trade turnover. However, we should also know that this is mainly due to our export of oil to Italy. Therefore, we are interested in diversifying our exports. Here we come to the issues of agriculture, heavy industry and the relationship of small and medium enterprises. Of course, we welcome large investments from Italy and are ready to invest in its economy. Today, Azerbaijan’s investments in Italian companies and real estate amount to approximately $1.5 billion, and we have the potential for [more] development,” Aliyev replied.

The Azerbaijani Defense Minister, Colonel General Zakir Hasanov, and the Chief Executive Officer of Italian company Leonardo S.p.A. exchanged the Declaration on the acquisition of the M-346 aircraft integration system, boosting the military cooperation between the two countries. 

It was also reported that Italian power turbine manufacturer Ansaldo Energia signed two memorandums of understanding with Azerbaijan in the fields of energy. The first memorandum involves electricity provider JSC Azerenerji and allows Ansaldo Energia to submit a proposal for a 10-year service contract for two of the nation's combined cycle power plants. It also creates a close collaboration framework for an agreement on the construction of the 1,000-MW Yashma CCGT power plant. The second memorandum, signed with the Azerbaijani Ministry of Energy, provides for the analysis of the energy potential and the creation of suitable conditions for investments in sustainable and renewable energy projects in Azerbaijan.

Azerbaijan and Italy enjoy good relations with each other. Italy recognized the independence of Azerbaijan from Soviet Union in January 1992. The diplomatic relations between the two countries were established in May 1992. The first embassy of Italy among the Southern Caucasian republics was opened in Azerbaijan in 1997 and the embassy of Azerbaijan to Italy has been functioning since 2003. Azerbaijan's former President Heydar Aliyev paid his first official visit to Italy in September 1997 and, between 1998-2003 government officials of Italy visited Azerbaijan, which resulted with signed agreements on cooperation in different spheres. Italy is notable for being the first chairman of OSCE Minsk Group acting for the peaceful settlement of the Nagorno-Karabakh conflict. Italy has become the biggest trade partner of Azerbaijan in importing crude oil and oil products. 51.9% of exportation from Azerbaijan has been directed to Italy since 2003. Italy mainly exports pipes for the oil sector, tobacco, leather and furniture to Azerbaijan. During the Soviet era, in 1972, city of Italy, Naples, and the Azerbaijani capital, Baku, were declared sister cities.