Azerbaijan’s goes on a pivot away from the West
Creation of North-South Corridor involving Iran and Russia is part of grand strategy
Meanwhile, West-backed projects such as the Kars-Akhalkalaki-Tbilisi-Baku railway — which launched in 2015 and is mainly used to transport goods to European consumers — are bringing the idea of an East-West economic corridor closer to reality, undermining Russia’s economic clout in the region. Azerbaijan is a key energy supplier to Europe, and is planning to deliver an additional 10 billion cubic metres of gas per year from its Shah Deniz gas field to European markets, on top of the 9 billion cubic metres it already provides.
Over the past year, Iranian business investment has been flowing into Azerbaijan. Russia accounts for 80 per cent of the dollar value of the country’s arms imports, with Azerbaijan the second largest buyer for military imports in Europe.
Iran has moved in to fill the vacuum; Iranian President Hassan Rouhani and President Ilham Aliyev have met seven times, over the course of the past two years. There are an estimated 450 Iranian companies operating in Azerbaijan.
The writer is a Research Associate at the American University in the UAE and a Non-Resident Fellow at the International Centre for Risk Assessment.
