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Aze.Media > Opinion > Baku has recorded a clear geoeconomic victory: the first deal with Armenia in 35 years
Opinion

Baku has recorded a clear geoeconomic victory: the first deal with Armenia in 35 years

This week, an event took place that can rightfully be described as historic and symbolically significant for the entire post-conflict space of the South Caucasus, as it opens a qualitatively new chapter in relations between Armenia and Azerbaijan.

AzeMedia
By AzeMedia Published December 20, 2025 260 Views 7 Min Read
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Armenian Prime Minister Nikol Pashinyan (L) meets with Azerbaijani President Ilham Aliyev (R), Abu Dhabi, United Arab Emirates (UAE), July 10, 2025. (Azerbaijan President Press Service Handout via EPA Photo)

This week, an event took place that can rightfully be described as historic and symbolically significant for the entire post-conflict space of the South Caucasus, as it opens a qualitatively new chapter in relations between Armenia and Azerbaijan.

For the first time in almost 35 years, a train carrying gasoline delivered from Azerbaijan arrived in Armenia. Having transited through Georgia, the train crossed the Armenian border on Friday afternoon, as publicly reported by Armenia’s Minister of Economy Gevorg Papoyan. According to him, this is essentially the first trade and economic transaction between the two countries since they gained independence in 1991, giving the event not only economic but also major political importance.

It is particularly important that the delivery was commented on at the highest political level in Armenia. Prime Minister Nikol Pashinyan stressed that the import is being carried out by private companies and became possible exclusively due to the establishment of peace between Armenia and Azerbaijan. Thus, the Armenian side effectively affirmed a direct link between normalization of relations and the emergence of real economic cooperation that goes beyond declarations. The delivery is a practical result of agreements reached on November 28 in Gabala during a meeting between Azerbaijan’s Deputy Prime Minister Shahin Mustafayev and Armenia’s Deputy Prime Minister Mher Grigoryan, underscoring the institutional nature of the process and its integration into intergovernmental dialogue.

The commercial dimension of the deal also deserves attention. The import of Azerbaijani petroleum products to Armenia was carried out by MegaTrade, a company owned by the family of Khachatur Sukiasyan, an MP from the ruling Civil Contract party. The company emphasizes that deliveries are being implemented within agreed procedures and arrangements between the relevant entities of both countries. Focus is placed on the economic rationale of the project: the launch of an alternative supply route aimed at diversifying Armenia’s fuel market, strengthening competition, and creating more transparent pricing. The imported petroleum products will be sold through the Ran Oil gas station network, which, according to the company, should help reduce fuel prices and improve access to high-quality gasoline for consumers.

It is especially noteworthy that the delivery involves AI-95 gasoline, used exclusively in the civilian sector—private automobiles—with no military purpose. This fact carries not only technical relevance but also political and psychological significance, underlining the strictly peaceful nature of the deal and reducing space for speculation about possible consequences.

In this context, Armenian drivers and fuel consumers can be expected to become the direct beneficiaries, while the development itself may positively influence public perception of the peace agenda in Armenia.

Domestically, the event may further strengthen the position of Nikol Pashinyan’s government, which continues to pursue normalization of relations with Azerbaijan and pragmatic regional integration.

The historical nature of what has occurred also lies in its broader economic dimension. By the end of the year, Azerbaijan’s and Armenia’s external trade statistics will, for the first time, include an official entry reflecting trade turnover between the two countries—something that has not existed throughout their modern relationship. This fact alone signals the beginning of a transformation in the post-conflict reality and a shift from a logic of isolation to one of limited but tangible economic interaction. It is important to note that once again, the initiative came from the Azerbaijani side, creating a new geoeconomic situation in the region. Given that the supplies are originating from Azerbaijan, the first official trade turnover in the history of the two states will be recorded with a fully positive balance in Azerbaijan’s favor.

But for Armenia, the deal also opens the strategic opportunity to gradually reduce its near-total dependence on Russian energy resources and integrate more closely into regional economic networks in which Azerbaijan plays one of the key roles.

Thus, the first delivery of Azerbaijani gasoline to Armenia goes far beyond a one-time commercial operation. It marks the beginning of structural shifts in regional politics and economics, demonstrating that the peace process is beginning to acquire material substance. If similar steps continue and become institutionally solidified, they may lay the economic groundwork for a more stable and pragmatic model of relations between Baku and Yerevan—one in which mutual benefit and regional connectivity gradually displace the logic of confrontation and isolation.

Ilgar Velizade

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