German Ambassador Underscores Energy Trade and EU Links as Azerbaijan Gains Strategic Importance

| News, Politics, Azerbaijan

On June 15, during a farewell meeting with Azerbaijani journalists, Ralf Horlemann, the German Ambassador to Azerbaijan, stated that the peace process between Azerbaijan and Armenia had become the most important development in the South Caucasus in recent years. Horlemann emphasized that the end of the conflict and the subsequent drafting of a peace agreement between Baku and Yerevan represented a major achievement for both sides. "This is truly major progress and an important achievement," Horlemann stated, adding that supporting the peace process had been one of the key priorities of his diplomatic mission in Azerbaijan. He noted that sustainable peace would serve not only Azerbaijan and Armenia but also the wider region, creating new opportunities for economic cooperation and strengthening trade links between Asia and Europe.

The ambassador further stated that relations between Azerbaijan and Germany have traditionally been pragmatic, stable, and steadily developing. He recalled that the history of bilateral relations dates back to the 19th century, when the first German settlers arrived in Azerbaijan. Horlemann also referred to high-level political contacts, noting that Frank-Walter Steinmeier visited Azerbaijan for the first time last year, while Ilham Aliyev has made several visits to Germany during his presidency. He added that cooperation between the two countries aligns with the foreign policy priorities defined by Chancellor Friedrich Merz, which include security, prosperity, and freedom, and that these areas frame ongoing bilateral dialogue. According to Horlemann, annual political consultations continue between Berlin and Baku, while trade relations show steady but gradual growth. He stated that last year bilateral trade reached approximately 1.7 billion euros. Energy cooperation, he added, remains a key component of economic relations between the two countries.

The ambassador explained that Germany does not import Azerbaijani gas directly due to the absence of a pipeline connection. However, he noted that Azerbaijani gas supplied to the EU mainly reaches Italy and is then traded across the European single energy market. "Through various swap transactions between countries and energy companies, Germany indirectly consumes Azerbaijani gas, primarily through swaps with Italy and Austria," Horlemann stated. He added that this mechanism contributes to stabilizing the European energy market, particularly in the context of disruptions following the Russia–Ukraine war and challenges in global energy transit routes. Horlemann also noted that Azerbaijan’s main export to Germany remains oil, while Germany exports machinery, electronics, automobiles, and industrial equipment to Azerbaijan.

Addressing broader EU-Azerbaijan relations, Horlemann stated that Germany supports further deepening cooperation between European Union and Azerbaijan, noting increased engagement over the past year. He recalled visits to Azerbaijan by Antonio Costa and Kaja Kallas, as well as ongoing negotiations on a new cooperation framework following a financial agreement signed last year. Horlemann emphasized that Azerbaijan’s role in Europe has grown due to its contribution to energy security and its position as a transport and logistics hub between Asia and Europe. He also mentioned EU involvement in infrastructure projects, including the modernization of the railway line in Nakhchivan as part of the Middle Corridor initiative. The ambassador expressed hope that this positive momentum in EU-Azerbaijan relations would continue, describing the region as increasingly important for Europe’s strategic interests. Horlemann further stated that three German companies have signed long-term gas supply contracts with SOCAR, totaling approximately 2 billion cubic meters per year over a period of about ten years. He noted that he expects volumes to potentially increase after this period.

Finally, the ambassador expressed hope that Ilham Aliyev would undertake an official visit to Berlin within the year, noting that the Azerbaijani president has been invited to Germany. He added that annual political consultations and work within the high-level trade and investment framework between the two countries are expected to continue.

See Also

"Caucasus Watch" seeks local specialists from Georgia, Armenia, Azerbaijan and the North Caucasus region. We offer a flexible format of cooperation, competitive remuneration and access to a European readership. Send CV, cover letter and writing sample to redaktion@caucasuswatch.de. Questions: i.dostalik@caucasuswatch.de

Our website uses cookies. By clicking on "I accept cookies", you consent to our use of cookies in accordance with the terms of our Cookie Policy. If you want to disable cookies follow the instructions in our Cookie Policy so that cookies from this website cannot be placed on your device.