Azerbaijani-Hungarian relations in recent years have shown steady progress, reflecting not only the growth of mutual trade but also the transformation of cooperation into a strategic partnership covering a wide range of areas — from agriculture and pharmaceuticals to energy and the “green” economy. The 11th session of the Intergovernmental Commission, held on September 5 in Budapest, marked an important milestone on this path, consolidating new agreements and underlining mutual interest in long-term investments, technology exchange, and the strengthening of the legal framework for cooperation. The outcomes of the meeting demonstrated that both sides are striving to build relations through comprehensive and complementary projects that go beyond the traditional raw material format and are oriented towards integration into the wider European economic space.
The meeting focused on expanding the legal and contractual framework of bilateral cooperation, reflected in the signed documents. The final protocol of the commission outlined cooperation priorities for the near future, identifying key areas in trade and economic ties, investment, energy, transport, agriculture, healthcare, and the humanitarian sphere. The signing of the protocol is not merely a formal confirmation of agreements reached but also a step towards creating a sustainable framework for regular monitoring of commitments and the development of concrete projects.
A key element was the Action Plan for 2025–2027 between Azerbaijan’s Food Safety Agency and Hungary’s Ministry of Agriculture. This document provides for joint measures to ensure product quality and safety, the exchange of technologies in agricultural production and veterinary science, and the expansion of agricultural trade. For Azerbaijan, focused on diversifying exports and developing the non-oil sector, this plan represents a gateway to the European market via Hungary as an EU member. For Budapest, it provides an opportunity to strengthen the presence of its producers in the Azerbaijani market.
Equally significant was the signing of a Memorandum of Understanding in healthcare between the Azerbaijan Medical University, the University of Pécs, and pharmaceutical companies Scandens and PannonPharma. Its importance goes beyond academic exchange, as it lays the groundwork for clinical research, the introduction of new pharmaceutical technologies, and the establishment of contract manufacturing of medicines in Azerbaijan. This enables Azerbaijan to gain access to European standards in medicine and pharmaceuticals, while Hungary strengthens the export potential of its pharmaceutical industry.
The most strategic documents, however, concern the energy sector. Hungarian companies MOL Group and MVM secured their presence in major Azerbaijani oil and gas projects by acquiring stakes in field development. This fundamentally changes the nature of cooperation: Hungary moves from being a final consumer to becoming an investor and producer, reducing its dependence on traditional suppliers and enhancing its energy security. According to the parties, MOL is preparing to assume operator functions at one of the significant oil fields and to join natural gas production under new agreements. For Azerbaijan, these steps mean attracting long-term investment, technological exchange, and reinforcing its position as a reliable energy supplier to Central Europe.
Energy cooperation also extends beyond extraction. The parties discussed the prospects of establishing a “Green Energy Corridor,” which would allow the export of renewable energy from the Caspian through the South Caucasus and the Black Sea to Europe, including Hungary. Hungarian participation in this project allows its companies to secure a foothold in the emerging green energy market and benefit from future distribution flows. For Azerbaijan, it is an additional channel for strengthening energy diplomacy and entering EU markets with new products.
Taken together, the signed documents highlight the comprehensive nature of the Azerbaijani-Hungarian partnership. They strengthen the legal foundation of bilateral ties, expand cooperation beyond traditional energy trade, and establish long-term strategic projects. Through participation in Azerbaijani energy and industrial initiatives, Hungary reinforces its position in the region and diversifies its energy sources, while Azerbaijan expands its presence in Central Europe, increases its attractiveness to investors, and demonstrates its ability to integrate into European production and supply chains.
Ilgar Velizade
