It also highlights Azerbaijan’s rising influence as a pivotal player in regional trade networks bridging the West and Asia.
BRICS, initially a five-nation bloc—Brazil, Russia, India, China, and South Africa—has witnessed significant expansion in 2024. After over a decade of stable membership, January saw the admission of Iran, Egypt, Ethiopia, and the United Arab Emirates. Saudi Arabia is also exploring joining this exclusive, invitation-only club.
Comprising some of the world’s largest oil producers, BRICS nations collectively account for over a quarter of global GDP. Yet, the bloc is not without controversy, as some members, particularly Russia and Iran, have fraught relations with the West.
Azerbaijan’s formal application, submitted on August 19, came just a day after Russian President Vladimir Putin visited Baku. Strengthening regional cooperation was at the forefront of Putin and Azerbaijan’s President Ilham Aliyev’s discussions, with $120 million earmarked to enhance cargo transport links between the neighboring countries.
Azerbaijan’s interest in BRICS appears to be driven primarily by logistical considerations. “Azerbaijan is strategically positioned at the heart of key transport corridors like the Middle Corridor, the North-South, and East-West routes—pathways critical to both China and India. BRICS membership could open the door to valuable investment opportunities if relations are well-managed,” noted economist Natig Jafarli in an interview with Azernews.
Maintaining robust ties with Russia and the West is a priority for Azerbaijan. About 80% of Azerbaijan’s exports are directed to Western countries, including Turkey and Israel—nations often considered part of the broader Western sphere. Additionally, 85% of foreign investments in Azerbaijan come from these same countries, according to Jafarli.
“80% of Azerbaijan’s exports are directed to Western countries, including Turkey and Israel, which are also considered part of the Western sphere. Additionally, 85% of foreign investments in Azerbaijan originate from these nations,” said Jafarli.
Energy has also bolstered Azerbaijan’s position as a key European partner. In mid-2022, Baku signed a pivotal agreement with the European Commission, helping Europe reduce its reliance on Russian oil and gas. This November, Baku will host COP29, a crucial UN climate summit expected to attract thousands of diplomats, experts, and environmental activists.
As BRICS expands, its economic weight in global affairs is growing. While the West might view this growth as a potential challenge to the existing order dominated by Europe and the United States, it does not signal an overt anti-Western agenda. Instead, BRICS is a platform for emerging economies to explore new economic models that reflect the shifting global landscape.
The recent addition of five new Middle East and Africa members illustrates the bloc’s balanced geopolitical approach. Egypt and the UAE, for example, have traditionally aligned with the U.S., underscoring the nuanced nature of their participation in BRICS.
For BRICS, inviting Azerbaijan into the fold makes strategic sense. As a rising regional power with deepening ties to both the West and Russia, Azerbaijan’s membership would further demonstrate the bloc’s inclusivity, extending beyond the Global South and encompassing a variety of economic systems.
From Azerbaijan’s perspective, joining BRICS could bolster its global economic network, enhancing connections with other developing nations far beyond its immediate neighborhood. Azerbaijan’s application may be viewed as a formal recognition of its burgeoning trade ties with BRICS members. According to government data, trade between Azerbaijan and BRICS countries grew by 9.2% during the first seven months of 2024, surpassing $5.8 billion.
Between January and July, BRICS countries accounted for 21.65% of Azerbaijan’s total trade, an increase of more than 4% compared to the previous year. These numbers reflect a growing economic relationship between Azerbaijan and BRICS.
By joining BRICS, Azerbaijan will solidify its position in the global economic landscape, driven by strategic interests in logistics and investment. The country’s bid also reflects a broader trend of nations seeking alignment with influential global economic blocs.
Krishna Nag
