AGP Executive Report

Energy Diplomacy: Ukraine and Azerbaijan’s energy ministers discussed expanding gas transport routes to EU markets via Ukrainian infrastructure, with Azerbaijan businesses ready to invest in Ukraine’s energy recovery. EU Partnership Talks: Azerbaijan and the EU preliminarily agreed a 2026–2030 Partnership Priorities draft after negotiations in Baku, with further talks on a new comprehensive agreement continuing. Aviation & Travel: SAS’s first Copenhagen–Mumbai service in 17 years was forced to turn back over Azerbaijan after missing final Indian regulatory approval, leaving passengers stranded back in Denmark. Oil & Gas Operations: bp deployed multilateral well technology in the Azeri-Chirag-Deepwater Gunashli (ACG) field to boost recovery and extend production life, while SOCAR and partners also continue Caspian gas supply and pipeline-related moves. Sports: Azerbaijan’s national mini-football team reached the European Championship final after a 1-1 draw with Serbia and a penalty shootout win, setting up a June 4 clash with Ukraine. Tech & Research: Stockholm University researchers say AI decoded the 17th-century Borg Cipher in 28 minutes, far faster than manual work. Public Policy: Azerbaijan’s MFA protested Russia’s state TV over a distorted map labeling “Nagorno-Karabakh,” calling it unacceptable political manipulation.

Middle Corridor Boost: Azerbaijan’s logistics push got a fresh lift as the Baku–Tbilisi–Kars railway moves further into full operation, with experts stressing that growth depends on coordinated work across all corridor participants, not just rail. Energy & Industry: At Baku Energy Week, Azerbaijan and Germany discussed expanding natural gas and renewable cooperation, while SOCAR-linked updates highlighted efficiency gains at the ACG field using advanced drilling tech. Cybersecurity: Azercell is backing the 4th National Cybersecurity Forum in Baku, showcasing AI-powered threat detection and management. Culture & Society: The Leyla Khazari Art Gallery in Baku will host the “Tiny Worlds” exhibition by young artists, and Sumgait held the 3rd Kelaghayi Festival celebrating the iconic Azerbaijani silk headscarf. Sports: Azerbaijan’s U-20 team will play Pakistan in a friendly in Gabala, and UEFA banned Turan Tovuz from the Conference League over a match-fixing-related criteria issue. Regional Ties: Azerbaijan-Belarus trade rose over 11% in early 2026, with both sides pointing to industrial cooperation and joint ventures.

Transport & Connectivity: The upgraded Baku–Tbilisi–Kars (BTK) railway has entered full operation after modernization on the Georgian segment, boosting annual freight capacity from 1 million to 5 million tonnes and strengthening the Middle Corridor linking Azerbaijan, Georgia and Türkiye. Energy Diplomacy: U.S. Assistant Secretary of State Caleb Orr arrived for Baku Energy Week, where the first Azerbaijan–U.S. Economic Dialogue was held to expand trade, energy security, critical minerals, transport and digital cooperation under the strategic partnership charter. Regional Energy Deals: TotalEnergies’ Absheron gas project finalized a 15-year gas sales contract with Türkiye’s BOTAŞ starting in 2029 for 33 bcm total (about 2.2 Bcm/year). Economy & Diversification: Azerbaijan’s Finance Ministry discussed with the World Bank how diversification efforts—non-oil growth, investment climate, exports, human capital and digital solutions—can be supported while protecting macro stability. Media & Rights: Voice of America marked the one-year detention of journalist Ulviyya Ali, calling for her well-being and release amid concerns over a broader crackdown on independent media. Sports: Azerbaijan’s mini-football team reached the European Championship semifinals after beating the Czech Republic 5–2. Armenia Tensions: An Armenian opposition MP vowed to publish documents on the Goris–Kapan road handover to Azerbaijan, reigniting debate over territorial control and the peace process.

BTK Railway Launch: Azerbaijan, Georgia and Türkiye officially opened the upgraded Baku–Tbilisi–Kars (BTK) railway for full operation, boosting capacity on the Georgian section from 1 million to 5 million tons per year and strengthening the Middle Corridor for China–Europe cargo flows. Energy Cooperation: bp and SOCAR are integrating Azerbaijan’s marine seismic data into a unified database to plug exploration gaps and support future offshore drilling, while SOCAR and BOTAŞ signed a deal to supply gas from the Absheron field’s second phase, with production targeted for 2029. Pipeline Management: bp said it will transfer management of the Baku–Tbilisi–Ceyhan (BTC) oil pipeline to SOCAR from July 1 under contractual obligations. Human Rights & Armenia: A Baku court of appeal began preliminary hearings on appeals by Armenian prisoners convicted in Baku, and international groups renewed calls for the release of Karabakh activist Artur Osipyan. Diplomacy: Turkey’s foreign minister said Trump plans to attend the NATO summit in Ankara next month, and Azerbaijan–Ukraine talks focused on expanding energy security cooperation. Community: Azercell Volunteers held International Children’s Day safety and civil defense activities for children in Baku.

Tourism & Diplomacy: Azerbaijan Tourism Board opened its Beijing office as part of the 2026 “China Roadshow,” aiming to boost visibility and industry ties; Chinese arrivals rose to 63,500 in 2025 (+41.7% y/y) and reached 14,303 in Jan–Apr 2026. UN Transition: UN Acting Resident Coordinator Igor Garafulic ended his tenure in Azerbaijan and will take up a new role in Brazil; his mission included visits to Karabakh and East Zangezur and support for WUF13 preparations. Energy Deals: During Baku Energy Week, SOCAR signed Basic Terms with Serbia’s EPS for a gas power plant in Nis (up to 500 MW by 2030) and also inked a 15-year Absheron gas sales agreement with TotalEnergies, ADNOC and BOTAS, with first production targeted for 2029. Finance Watch: Business loans in Azerbaijan hit 16.313bn manat ($9.6bn) by May 1, 53.3% of total banking loan portfolio, while the IMF backed Azerbaijan’s medium-term fiscal consolidation path. Regional Security: Azerbaijan’s Security Council delegation joined a major international security forum in Russia, with Ramil Usubov stressing joint efforts in a multipolar world.

Baku Energy Week Diplomacy: President Ilham Aliyev opened the 31st Caspian Oil & Gas and Baku Energy Forum, stressing Azerbaijan’s role in energy security and the shift to low-carbon development, while UN chief António Guterres and leaders from Singapore and Lithuania sent Independence Day congratulations. US-Azerbaijan Ties: Aliyev thanked Donald Trump for a memorandum extending the Section 907 waiver and met U.S. Assistant Secretary Caleb Orr, with both sides pointing to the first Azerbaijan–U.S. Economic Dialogue. Regional Energy Deals: SOCAR, BOTAŞ, TotalEnergies and ADNOC signed a 15-year gas supply agreement for 33 bcm to Türkiye from 2029; Türkiye also floated an “electricity version of TANAP” to move renewable power toward Europe. EU Connectivity: The European Commission said Azerbaijan is a key partner in its Central Asia connectivity strategy, linking renewables, interconnectors and gas supplies. Transport Boost: The Baku–Tbilisi–Kars railway starts operations June 2, aiming to raise freight capacity to 5 million tons a year. Human Rights Spotlight: Czech media covered the nomination of imprisoned Ruben Vardanyan for a Václav Havel prize, while NGOs urged international action over Artur Osipyan’s case.

Azerbaijan–Algeria Energy Ties: President Abdelmadjid Tebboune ratified a new Azerbaijan–Algeria MoU to expand cooperation in oil, gas, petrochemicals and green-energy projects, with SOCAR set to supply long-term light crude volumes to Sonatrach Raffineria Italiana. Baku–US Economic Dialogue: Azerbaijan will host the first Azerbaijan–US Economic Dialogue on June 2 during Baku Energy Week, covering trade, transit, energy security, AI and digital infrastructure, with business sessions and cooperation documents planned. Diaspora & Independence Day Events: Azerbaijan marked Independence Day abroad with celebrations in Gothenburg, Prague and other cities, featuring cultural programs and Azerbaijani community participation. Karabakh Jobs & Reconstruction Support: The State Employment Agency held mobile outreach in liberated districts to assess employment prospects and match residents to training and job programs, while the Karabakh Revival Fund backed a business meeting in Jabrayil, Gubadli and Zangilan on investment opportunities. Education & AI: The Ministry of Science and Education and OpenAI launched an AI-based adaptive learning platform under the “Digital School” project for more than 500,000 students. Public Safety: Emergency services ran awareness events across regions on how to act during emergencies.

US-Azerbaijan Ties: Baku will host the first Azerbaijan-US Economic Dialogue on June 2 in the framework of the Strategic Partnership Charter, with talks on connectivity, trade, energy security, transit, AI and digital infrastructure, plus business sessions and planned cooperation documents. Digital Education: Azerbaijan’s Ministry of Science and Education and OpenAI launched an AI-based adaptive learning platform under the “Digital School” project for 500,000+ students, with personalized assignments and real-time performance indicators for teachers and the ministry. Public Safety: The Ministry of Emergency Situations held awareness events across regions on how to act during emergencies, involving fire control, small-vessel safety and water rescue specialists. Youth & Tourism: “Young Tourism Leaders-3” ran in Guba to build youth leadership in tourism, with support from the Youth and Sports Ministry and the State Tourism Agency. Karabakh Reconstruction & Investment: The Karabakh Revival Fund and the President’s special representative held a meeting in Jabrayil, Gubadli and Zangilan on investment potential and business opportunities. Border & Customs Control: State Border Service, Customs Committee and Azerbaijan Railways inspected stations on the Azerbaijan–Georgia route to tighten procedures and improve passenger and freight services. Social Inclusion: The State Employment Agency provided jobs to 1,500 people with disabilities and offered vocational training for 131. Aviation Tribute: AZAL flight attendants visited the grave of National Hero Hokuma Aliyeva on International Flight Attendant Day. Security: Customs prevented the sale of 44,335 units of unregistered medicines found in Sumgait. Weather Watch: Variable conditions continue, with rain, strong winds and snowfall in mountains like Shahdag.

Azerbaijan–Armenia Diplomacy: Russia recalled its ambassador to Armenia for “consultations” over Yerevan’s growing EU ties, warning it could undermine cooperation in the Eurasian Economic Union as Armenia heads to a June 7 vote. US–Azerbaijan Defense Ties: A Pentagon official said the U.S. considers Azerbaijan a geostrategic partner, citing long-standing cooperation and Azerbaijan’s role in regional exercises and professional military education. Energy & Trade: Azeri Light crude fell 2.5% to $98.01/bbl; Azerbaijan’s bank deposit portfolio edged down to 41.3 billion manat and credit investments reached 32.6 billion manat. Regional Connectivity: Dutch special envoys will visit Azerbaijan for Baku Energy Week to discuss connectivity, energy and Middle Corridor cooperation. Sports: Azerbaijan’s minifootball team beat France 3-2 to finish top of Group F at the European Championship. Travel & Tourism: Middle East tourist arrivals to Azerbaijan dropped 14% in the first quarter. Humanitarian/Remains Search: Bone fragments were found in Aghdara’s Bash Guney, believed linked to a family missing since 1992.

Independence Day Diplomacy: Azerbaijan marked May 28 with official receptions abroad, including Strasbourg and Brussels, where diplomats highlighted the Azerbaijan Democratic Republic’s legacy and Azerbaijan’s growing role in multilateral cooperation. Regional Energy & Transit: Kazakhstan said it sees no alternative to the CPC for most oil exports, while also weighing the Baku–Supsa route as an additional option if it proves economically feasible. Azerbaijan–Georgia Connectivity: Georgia and Azerbaijan signed new long-term electricity and gas framework deals and restored the Tbilisi–Baku passenger rail link, as questions grow over transparency and energy security. Armenia–EU Pressure: Russia and allied leaders urged Armenia to hold an EU referendum soon, warning of “significant risks” to the Eurasian Economic Union. Tourism Push to China: Azerbaijan Tourism Board opened a Beijing office and joined ITB China 2026, citing rising Chinese arrivals. Sports: Azerbaijan’s minifootball team reached the European Championship playoffs after beating Italy 3-0.

Independence Day & Civil Society: Azerbaijani police in Novkhani forcibly confiscated an EU flag from an activist during Independence Day celebrations, saying it was “not Azerbaijani flag,” while the rally continued without arrests. Regional Diplomacy: Iran’s President Masoud Pezeshkian said Tehran will personally engage regional leaders to protect essential imports, urging wider use of northern corridors and cooperation including with Azerbaijan. Armenia Tensions & Air Defense: Armenia unveiled an upgraded Iranian-made AD-08 Majid air-defense system during its Republic Day parade, signaling a sharper focus on drones and low-altitude threats. Trade & Transit: Reports say Russia sent 126 tons of carbamide fertilizer and 67 tons of flour to Armenia by rail via Georgia and Azerbaijan, as Iran accelerates alternative import routes. Restoration in Karabakh: Azerbaijan opened a fully restored Culture Centre in Khankendi and continued housing restoration in Shusha’s Boyuk Galaderesi, with infrastructure work underway. Energy & Business: Azcon plans to merge AzinTelecom, Aztelekom and Azerpost and aims to start using Azerspace-3 by end-2029; SOCAR’s Italy expansion also remains in focus. Sports & Culture: Opera Days kicked off in Baku, while Azerbaijan’s Azerspace-3 and Baku events keep drawing international attention.

Independence Day Diplomacy: President Ilham Aliyev sent congratulatory letters to Ethiopia’s PM Abiy Ahmed and to leaders including Finland, Somalia and Jordan, underscoring growing bilateral ties. Shusha Reconstruction: Aliyev inspected restoration progress in Boyuk Galaderesi village in Shusha, including power, gas, water and communications work for returning residents. Khojaly Industry Boost: Aliyev inaugurated the “Garabagh Textile House” LLC in Khojaly, backed by Turkish and Chinese technologies, targeting 1.4 million textile items annually and creating jobs for returnees and trainees. Energy & Markets: Azeri Light oil price slipped to about $102.3 per barrel after a $4.18 drop, while SOCAR’s Rome events highlighted Italy expansion and the SOCAR Italia presentation. Armenia Tensions: Russia moved to restrict Armenian fruit and vegetable imports from May 30, citing alleged quality and safety violations amid wider EU-Russia friction. Foreign Policy Watch: Azerbaijan is considering reopening its embassy in Libya, with the issue “on the agenda.”

Independence Day Diplomacy: Azerbaijan marked May 28 with receptions at the Holy See and abroad, as President Ilham Aliyev highlighted the ADR legacy and “victorious” statehood while foreign leaders including the UAE and Slovakia sent congratulatory messages. Karabakh Reconstruction: Aliyev inspected restoration in Shusha’s Boyuk Galaderesi village, where power, gas, water and communications upgrades are underway for returning residents. Regional Connectivity & Trade: Georgia and Azerbaijan deals keep the Baku–Tbilisi–Kars railway on track for a June 2 opening, while Kazakhstan says Middle Corridor container traffic could reach 10 mln tons by 2030; meanwhile, Moldova received 300 more Azerbaijan transit permits for freight. Armenia Tensions: Russia moves to restrict Armenian fruit and vegetables over alleged quality violations, and Armenia’s Republic Day parade drew attention for systems reportedly linked to Iran. Energy & Industry: Iran’s IRNA praised Baku reconstruction know-how, and Azerbaijan’s GM PHARMA hosted an Azerbaijani GMP inspection ahead of exports.

Independence Day & Eid Celebrations: Azerbaijan marked May 28 Independence Day with nationwide events and official receptions abroad, while Shia and Sunni clerics held Eid prayers together in Azerbaijan, underscoring religious unity. TRIPP Corridor Ties: As Armenia prepares for June 7 parliamentary elections, the U.S.-Armenia TRIPP framework is set to be finalized within a month, with plans including reopening the Meghri railway—while Iran and Russia warn that the corridor could reshape regional security and energy access. Russia-Armenia Energy Pressure: Moscow threatened to suspend discounted gas, oil products and rough diamonds if Yerevan deepens EU integration, adding fresh uncertainty ahead of the vote. Azerbaijan Trade & Transit: Azerbaijan’s mining output hit 12.5 billion manats in Jan–Apr, and urea and flour shipments from Russia to Armenia are set to transit via Azerbaijan. Security & Customs: Azerbaijan customs seized 110 kg of marijuana in a truck en route from Iran to Georgia. Diplomacy in New York: Foreign Minister Jeyhun Bayramov met China’s Wang Yi and Portugal’s Paulo Rangel, focusing on expanding strategic partnership, energy security, and UN-centered cooperation.

Armenia-Azerbaijan Peace Diplomacy: Trump congratulated President Ilham Aliyev on Independence Day, citing border delimitation, the January release of four Armenian prisoners, fuel supplies to Armenia and the “Bridge of Peace” initiative, while the U.S.-backed August 8 framework remains the reference point. Prison Appeals in Baku: Former Artsakh parliament speaker Davit Ishkhanyan said appeal hearings for his life sentence began May 26, with a first hearing set for June 2, calling the process “censored” and tied to Armenia’s political calendar. Armenian Election Tensions: Armenian PM Nikol Pashinyan and rivals traded sharp claims ahead of June 7 polls, including renewed disputes over alleged “return” plans and accusations of “lying” and revenge. Agrarian Push: Azerbaijan’s agrarian policy enters a “new stage” under a 2026–2030 state program aimed at boosting competitiveness, shifting to intensive farming, and strengthening food security. Energy & Trade: Azeri Light oil slipped to $106.48/bbl; gas exports to Bulgaria rose 26.4% in Q1, while gas exports to Serbia fell in 4M2026. Independence Day Abroad: Azerbaijan marked Independence Day with receptions in Moscow and Vienna, and Greece’s leaders sent congratulatory messages to President Aliyev.

TRIPP & U.S.-Armenia pressure: Ahead of Marco Rubio’s Yerevan visit, Armenian figures are openly tying TRIPP progress to demands that Azerbaijan withdraw from Armenia and release detainees—while the Armenian Assembly of America urges Washington to turn “Christian Armenians held in Baku” pledges into concrete action. Armenia’s line on security: Nikol Pashinyan says a “strong and combat-ready” army is the guarantee of Armenia’s security, and insists the return of 300,000 Azerbaijanis is “irrevocably closed.” Baku keeps detainee issue on the agenda: Armenian FM Ararat Mirzoyan says PoWs and detainees in Baku remain a constant topic in talks with U.S. counterparts. Regional connectivity: Georgia hails the return of daily Baku–Tbilisi passenger trains, linking it to tourism and economic ties. Trade & diplomacy: Azerbaijan exports goods to Armenia via official customs, while Jeyhun Bayramov meets Cuba’s FM in New York to expand cooperation. Business & investment: Kazakhstan plans $10bn in rail upgrades to boost China–Europe freight via the Middle Corridor, including Caspian shipping investments.