BAKU, Azerbaijan, January 14. The 6th session of the Azerbaijan-Italy Intergovernmental Commission on Economic Cooperation, convened on January 13 in Baku, not only advanced bilateral dialogue but also marked a pivotal moment in reshaping the economic and geoeconomic framework connecting the South Caucasus, Central Asia, and Europe.
The protocol signed during the meeting, along with the ratified 2026-2027 Action Plan encompassing 65 initiatives across 18 sectors, signifies a shift from an energy-centric collaboration model to a more diversified and institutionally structured partnership.
The Southern Gas Corridor remains the cornerstone of Azerbaijan-Italy relations. In an exclusive interview with Trend ahead of the meeting, Italian Deputy Minister of Foreign Affairs and International Cooperation Edmondo Cirielli directly linked Azerbaijan’s role to the transformation of European energy security.
He emphasized that, in the wake of Russia's aggression against Ukraine, Azerbaijani gas has become an essential energy source for Italy and the European Union (EU) at large. Since its inception in 2020, the Trans Adriatic Pipeline (TAP) has delivered over 40 billion cubic meters of gas to Italy, contributing to a total of 54.3 billion cubic meters of gas transported to Europe, with 45.4 billion cubic meters allocated to the Italian market.
In 2025, Azerbaijan upheld its position as Italy's second-largest natural gas supplier and its principal oil provider, exporting 9.5 billion cubic meters of gas, accounting for 38% of Italy’s total gas imports, and 10.3 million tons of oil. Overall, Italy received approximately 45% of Azerbaijan's total oil exports, solidifying its status as Baku's primary energy partner in Europe.
Italy, in turn, not only serves as a key consumer but also functions as a critical gateway for Azerbaijani energy to broader European and Mediterranean markets. As the second-largest European economy by industrial output, Italy acts as the EU's southern "gateway," providing access to a market of 500 million consumers.
This strategic positioning underscores the increasing interest of the State Oil Fund of Azerbaijan (SOFAZ) in Italian assets. SOFAZ’s investment portfolio in Italy has reached $2.8 billion, and between January and September 2025, Azerbaijan’s direct investments in Italy amounted to $118.6 million, marking a twofold increase compared to the same period in the previous year.
A noteworthy development in this context was SOFAZ’s partnership with Enfinity Global, securing a 49% stake in a portfolio of solar power plants with a combined capacity of 402 megawatts (MW) in Italy. Situated in the Lazio and Emilia-Romagna regions, these assets are projected to generate approximately 685 gigawatt-hours (GWh) of clean energy annually, while reducing CO₂ emissions by nearly 185,000 tons per year. For Azerbaijan, this acquisition represents not only a substantial financial investment but also a strategic foothold in the European renewable energy market.
Cirielli emphasized that Italy’s expertise in renewable energy is poised to play a crucial role in Azerbaijan’s efforts to diversify its energy portfolio. As one of the world’s foremost operators in the renewable energy sector, Italy’s experience is increasingly being integrated into regional energy projects spearheaded by Baku.
Italian company CESI SpA is already contributing to feasibility studies for the “Caspian–Black Sea–Europe” and “Central Asia–Azerbaijan” green energy corridors. These projects have the potential to connect renewable energy markets across Central Asia, the South Caucasus, and Eastern Europe, reducing regional dependence on fossil fuels. The phased launch of the Caspian–Black Sea–Europe corridor is expected from 2032.
While Italy serves as Azerbaijan’s gateway to Europe, Azerbaijan is increasingly becoming Italy’s entry point into Central Asia. Italy’s interest in the Middle Corridor reflects a broader European trend toward diversifying transport routes between Europe and Asia.
According to Cirielli, the South Caucasus and Central Asia are gaining strategic significance for logistics, and infrastructure projects in the region could simultaneously support economic integration and political stabilization. In this context, Italy has expressed support for the normalization of relations between Azerbaijan and Armenia, viewing it as a key condition for unlocking the transit potential of the route.
Italian companies have shown interest in participating in projects to modernize railways, ports, and highways along the Middle Corridor, particularly in the rail sector.
Beyond energy and logistics, discussions between the two countries increasingly focus on cooperation in manufacturing, waste management, agricultural modernization, ICT, healthcare, and pharmaceuticals. These areas are included in the intergovernmental commission’s agenda as potential drivers of long-term growth.
Trade between Azerbaijan and Italy continues to thrive, even as the energy supply landscape stabilizes. From January through November 2025, bilateral trade reached $11.2 billion, reflecting a 9% year-on-year increase. Italy now represents more than 25% of Azerbaijan’s total foreign trade turnover and nearly 47% of its exports.
Azerbaijan-Italy relations have evolved beyond the traditional "supplier-consumer" dynamic. While energy remains the cornerstone, a more intricate partnership is gradually taking shape, spanning investment, technology, and logistics.
For Italy, Azerbaijan serves as a pivotal partner positioned at the intersection of the South Caucasus and Central Asia. Conversely, for Azerbaijan, Italy is not only the largest trading partner but also a strategic gateway to the European Union and Mediterranean markets. This synergy between resources, trade routes, and markets is redefining the framework for Eurasian economic cooperation.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel