Baku, October 24, AZERTAC

In the rapidly changing landscape of global geopolitics, Azerbaijan finds itself at a pivotal juncture. Its strategic location as a crossroads of Europe and Asia makes it a key player in the international connectivity and cooperation. The Third Belt and Road Forum for International Cooperation (BRF III), held in Beijing on October 18, 2023, brought world leaders together to discuss the Belt and Road Initiative (BRI), offering Azerbaijan a unique opportunity to delve into the transformative potential of regional connectivity. Azerbaijan's participation in the BRI is a strategic choice that aligns with the country's long-term goals of expanding its regional influence and promoting economic development.

At its core, the BRI is a vast network of infrastructure projects, connecting countries and regions through road, rail, and maritime routes. For Azerbaijan, this translates into an incredible opportunity for economic expansion. The creation of new transportation corridors linking Azerbaijan to Europe, Asia, and the Middle East is a game-changer for the nation's economy. By participating in the BRI, Azerbaijan has made significant inroads and leveraged its strategic location as a key transportation hub in the South Caucasus. The BRI's "Connectivity in an Open World Economy" forum made a great promise for Azerbaijan's business community, offering them access to new markets and opportunities

To enhance bilateral relations and further the impact multilateral cooperation on the BRI in the Central Asia and South Caucasus regions, China and Azerbaijan are also prioritizing the Trans-Caspian International Transport Route (TITR) that passes through Azerbaijan. The TITR, known as the Middle Corridor, has been developed as part of China's BRI and aims to create a network of roads, railways, and ports spanning Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia, eventually reaching Turkey and/or the Black Sea. This route has the potential to significantly reduce shipping times from China to Europe, making it a vital component of BRI.

Both countries have already signed multiple agreements, including a $300 million investment by China National Electric Engineering Company (CNEEC) in a tire factory in Azerbaijan, creating jobs and boosting production. They are also exploring multimillion-dollar agreements in the agricultural sector. This burgeoning partnership is reflected in the substantial growth of imports from China to Azerbaijan, which increased by 40 percent in 2018-2019, with a total trade turnover of $1.3 billion. Azerbaijan has become China's top trading partner in the South Caucasus, surpassing countries like Armenia and Georgia. Mutual investments have also flowed, with Azerbaijan investing $1.7 billion in China's economy and China contributing close to $800 million to Azerbaijan's economy. Azerbaijan hosts around 119 companies with Chinese capital, a testament to the strength of this partnership.

Azerbaijan's commitment to the BRI can also be seen through the lens of energy security. As a significant energy producer, Azerbaijan recognizes the importance of diversifying its energy export routes. By participating in the BRI, Azerbaijan has an access new markets and reduce its reliance on a single transit route. This diversification enhances the country's energy security and minimizes the risks associated with over-dependence on a single route.

The BRI's "Green Silk Road for Harmony with Nature" forum dovetails perfectly with Azerbaijan's ambitions in the energy sector. By focusing on sustainable, eco-friendly practices, this aspect of the BRI aligns with Azerbaijan's vision of being a responsible and environmentally conscious energy producer. This also opens doors for cooperation in renewable energy projects, which can further bolster Azerbaijan's standing as a responsible global energy player.

Azerbaijan's strategic location within the Middle Corridor of the Silk Road Economic Belt, which spans railways and sea routes from China to the Black Sea via Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey, is vital for realizing the full potential of the Belt and Road Initiative. This corridor offers a shorter and more cost-effective route for goods from China to Europe compared to other alternatives. While it takes 36 days for goods shipped by sea to reach Europe and 20 days via the Trans-Siberian route, the Middle Corridor offers a mere 12-day transit time, significantly reducing shipping times.

The BRF III's emphasis on multilateralism and collaboration is another key reason for Azerbaijan's active participation. In an increasingly interconnected world, addressing global challenges requires collective action. The BRI promotes such cooperation by bringing nations together to find common solutions. This aligns with Azerbaijan's diplomatic approach, which has long emphasized the importance of dialogue and multilateralism.

Azerbaijan's active participation in this corridor reinforces its position as a regional transit hub and bolsters the strategic triangle formed by Azerbaijan, Georgia, and Turkey. This role makes Azerbaijan strategically important for China, Europe, and regional countries. Moreover, the Middle Corridor presents an opportunity for Azerbaijan to diversify its economy and reduce its reliance on oil.

The BRI's "People-to-People Bonds" forum resonates strongly with Azerbaijan's diverse and multicultural society. By participating in this aspect of the initiative, Azerbaijan has fostered stronger people-to-people ties, promote cultural exchange, and enhance its reputation as a nation that values diversity and inclusivity.

The Third Belt and Road Forum for International Cooperation heralded a new era for Azerbaijan's role on the global stage. By actively participating in the Belt and Road Initiative, Azerbaijan opens doors to economic growth, enhanced energy security, and heightened geopolitical importance. The multilateral approach of the BRI aligns with Azerbaijan's diplomatic vision, and the cultural and environmental facets resonate with its diverse society and sustainability goals.

In an ever-evolving world, Azerbaijan is set to embrace its geopolitical potential and unlock the transformative path that the Belt and Road Initiative offers. By participating in this global connectivity endeavor, Azerbaijan takes its place as a key player in shaping its destiny while contributing to the broader goal of a connected, prosperous world.

Muhammad Asif Noor

Director, Institute of Peace and Diplomatic Studies and Center for Eurasia and Central Asia Studies