Azerbaijan expands economic relations in the East and the West
Recently, Baku intensified economic relations with Romania, Uzbekistan and Hungary, increasing its oil and gas exports and widening the potential for cooperation in the field of electric energy, reported Caucasus Watch. Azerbaijani authorities informed in August that Baku exported almost 386,000 tons of crude oil and oil products to Romania in January-July 2023 alone. This indicator increased by 48.35% or 125.78 thousand tons in annual terms.
The value of the export of Azerbaijani oil and oil products to Romania in the period amounted to 233.767 million dollars. This is by 23.31 USD or 44.188 million USD more than in the same period of 2022.
Overall, Azerbaijan exported about 15.54 million tons of oil and oil products in January – July 2023, which is 5.33% less than the figure for the same period last year (16.414 million tons). In value terms, oil exports exceeded 9.44 billion USD.
On August 20, President of Azerbaijan Ilham Aliyev and the Prime Minister of Hungary Viktor Orbán met in Budapest. During the meeting, they lauded the successful development of energy cooperation between Azerbaijan and Hungary, including oil and gas. On August 21, Péter Szijjártó, the Minister of Foreign Affairs and Foreign Economic Relations of Hungary, reported that Budapest and Baku had signed an agreement under which the volume of Caspian gas supplies to Hungary will increase to about 1 billion cubic meters.
According to him, Hungary will buy 100 million cubic meters of gas in the fourth quarter of 2023. The head of the Hungarian diplomacy also recalled the agreement on storing 50 billion cubic meters of Caspian gas in Hungary’s reservoirs. According to Szijjártó, Budapest has been developing cooperation with Baku for a long time, and the signed agreement provides for a further increase of gas supplies of up to one billion cubic meters. At the same time, the minister emphasised that Hungary is working to diversify gas supplies.
On August 22, a meeting was held between Minister of Energy of Azerbaijan Parviz Shahbazov and the delegation led by Minister of Energy of Uzbekistan Jurabek Mirzamahmudov, who was visiting Baku, to deepen cooperation in the field of energy between Azerbaijan and Uzbekistan.
The strategic course of the heads of state reflecting the comprehensive development and strengthening of relations between countries in all fields was discussed. Within the framework of the meeting, the “Road Map on the expansion of cooperation in the energy sector for the years 2023-2025 between the Ministry of Energy of the Republic of Azerbaijan and the Ministry of Energy of the Republic of Uzbekistan” was signed. The Road Map covering fourteen directions envisages cooperation on geological exploration and production of hydrocarbon resources and establishing joint ventures in both countries.
According to the document, Azerbaijan and Uzbekistan will cooperate on renewable energy, energy sector reforms, efficient use of energy resources, energy transition, decarbonisation, and exchange of information and experience related to hydrogen production. Also, following the Memorandum of Understanding signed between “Uzbekistan National Electric Network” JSC and “Azerenergy” JSC on July 26 of this year, the continuation of cooperation between the system operators of both countries is reflected in the Road Map as one of the main directions of activity.