Former adviser: Germany views Azerbaijan as a key partner in Europe’s sustainable energy transition – INTERVIEW
Baku, April 8, AZERTAC
The Azerbaijan State News Agency (AZERTAC) presents an interview with Urs Emil Unkauf, a German expert, Federal Managing Director of the German Federal Association for Economic Development and Foreign Trade (BWA Global Economic Network), former political adviser to the member of the German Bundestag.
- How do you assess the results of the German President's visit to Azerbaijan and how will they affect bilateral economic relations?
- The official visit of Federal President Frank-Walter Steinmeier to Azerbaijan marks a significant milestone in strengthening bilateral relations between the two nations. This first-ever official visit of a German Head of State has laid the foundation for deeper cooperation, especially in sectors like energy, trade, and investment. The discussions and agreements reached during this visit are expected to bolster economic ties and create new opportunities for collaboration. In particular, the focus on energy, infrastructure, and technology will likely lead to increased German investment in Azerbaijan’s growing economy. Moreover, with Germany's emphasis on sustainability and innovation, both countries will likely work together to support Azerbaijan's efforts to diversify its economy and integrate more effectively into global markets.
– What is the current state of trade and economic relations between Germany and Azerbaijan?
- From a trade perspective, Azerbaijan holds the position of a leading trading partner for Germany in the South Caucasus. In 2024, the trade turnover between the two countries nearly tripled, reflecting the dynamic development of economic ties.
Germany’s foreign direct investment (FDI) in Azerbaijan’s economy reached $75.3 million in 2024, an increase of 2.83 times compared to the previous year ($26.5 million). Germany’s share in the total volume of FDI in Azerbaijan accounts for 1.1%.
Between January and November 2024, Germany accounted for 3.3% of Azerbaijan’s total foreign trade volume, making it the country’s sixth-largest trading partner. During this period, the volume of bilateral trade reached $1.4 billion, highlighting the high level of economic cooperation and the potential for further growth.
- How does Germany see the role of Azerbaijan in Europe's sustainable energy transition?
- Germany views Azerbaijan as a key partner in Europe’s sustainable energy transition. Given Azerbaijan’s strategic position as a major energy producer and its increasing efforts to diversify energy sources, Azerbaijan is seen as a crucial player in the shift towards more sustainable and renewable energy in Europe. The potential for collaboration on cleaner energy technologies, including solar, wind, and green hydrogen, is significant. As Europe strives to reduce its reliance on fossil fuels, Azerbaijan's role in providing reliable and environmentally friendly energy solutions will be essential in achieving the EU's ambitious climate goals.
- How important is Azerbaijan as a partner for Germany in the context of energy supplies?
- Azerbaijan is an important partner for Germany in the context of energy supplies, particularly in the diversification of energy sources. With Europe aiming to reduce its dependence on traditional energy suppliers, Azerbaijan's role as a key player in supplying natural gas, especially through the Southern Gas Corridor, is crucial. Azerbaijan's energy resources, combined with Germany’s technology and expertise, will contribute to enhancing Europe’s energy security and ensuring a stable, sustainable supply of energy in the years to come. The mutual interest in diversifying energy routes and sources strengthens Azerbaijan's importance as a partner for Germany.
-What steps are being taken to deepen cooperation in the field of renewable energy?
-Both Germany and Azerbaijan are committed to deepening cooperation in the field of renewable energy. Germany, with its advanced expertise in renewable technologies, is looking to collaborate with Azerbaijan in developing wind, solar, and green hydrogen projects. Joint research, technology transfers, and investment in infrastructure are among the primary steps being taken to enhance collaboration. Moreover, both countries are discussing partnerships that will allow Azerbaijan to harness its renewable energy potential, especially in its coastal and desert regions, while Germany supports the implementation of high-tech solutions. This collaboration is crucial in accelerating the transition to a greener energy future.
-Is Germany interested in developing transport and logistics corridors through Azerbaijan? How do you see the role of Azerbaijan as a key participant in the Middle Corridor and how can our countries cooperate in this direction?
-Germany is indeed interested in developing transport and logistics corridors through Azerbaijan. Azerbaijan’s strategic location at the crossroads of Europe and Asia positions it as a vital partner in facilitating trade and transport along the Middle Corridor. Germany, with its advanced logistics infrastructure and expertise, can collaborate with Azerbaijan to further enhance connectivity between Europe and Central Asia. The Middle Corridor is seen as a key route for increasing trade, reducing dependency on traditional routes, and promoting regional economic integration. By deepening cooperation, both countries can support the development of this important transport link, thereby boosting trade flows and strengthening economic ties between Europe and Asia.
