BAKU, Azerbaijan, March 25. Latvia regards Azerbaijan as a key partner in the South Caucasus, highlighting the steady expansion of bilateral trade and strong potential to deepen cooperation across logistics, investment, and green technologies, Raivis Bremšmits, State Secretary of the Latvian Ministry of Economics, said in an interview with Trend.
"Azerbaijan is one of Latvia’s most important partners in the South Caucasus. While economic cooperation is developing at a gradual pace, it remains stable and shows positive long-term potential.
From a trade perspective, Azerbaijan ranked 59th among Latvia’s foreign trade partners in 2024, with total trade turnover reaching EUR 47 million, representing an increase of 10.2%. In the first half of 2025, trade turnover amounted to EUR 28 million, marking a significant growth of 43% compared to the same period of the previous year.
In terms of exports, Azerbaijan ranked 55th in 2024, with Latvian exports totaling 37 million euros, an annual increase of 17.2%. Export volumes continued to grow dynamically in the first half of 2025, reaching 21 million euros, or 43% growth," he said.
According to him, imports from Azerbaijan ranked 67th in 2024, amounting to 10 million euros (decreased by 9.2%), while in the first half of 2025, imports reached 7 million euros, also reflecting a 43% increase compared to the same period of the previous year.
"In terms of incoming investments, Azerbaijan ranked 40th among foreign investors in Latvia in 2024, with investment volumes of EUR 15 million. In the first half of 2025, incoming investments increased to EUR 16 million, reflecting 7% growth.
Azerbaijan is actively modernizing its economy, with a strong focus on attracting foreign investment in areas such as energy, agriculture, logistics, and digitalization. These developments create tangible opportunities to expand bilateral trade and promote mutual investments, strengthen business contacts, and enhance cooperation between trade and investment promotion organizations," the state secretary noted.
Bremšmits emphasized that Latvia sees potential for cooperation across several broad economic areas, including transport and logistics and agriculture and food production, as well as education, research, and innovation.
"These sectors offer opportunities for business cooperation, knowledge exchange, and the development of mutually beneficial projects, subject to market conditions and commercial interest.
Azerbaijan is actively modernizing its economy, attracting foreign investment in energy, agriculture, logistics, and digitalization. These sectors are closely aligned with Latvia’s Research and Innovation Strategy's (RIS3) priority areas, creating favorable conditions for cooperation.
This in turn opens opportunities for Latvian businesses to expand their presence in the region, develop new export directions, and participate in the country’s modernization projects.
Any deeper investment cooperation would naturally depend on market conditions, commercial interest, and the overall business environment. Continued dialogue between business communities and relevant institutions can help identify areas where cooperation may develop organically over time," he added.
Bremšmits pointed out that in this wider picture, collaboration can come in various shapes and sizes, such as joint ventures or initiatives tied to industrial and tech-focused settings, where there's a definite commercial stake at play.
"There are prospects for cooperation in the field of green technologies. Azerbaijan’s ongoing economic modernization and its focus on sustainability create favorable conditions for dialogue and cooperation in areas such as waste management, water resource management, and the bioeconomy.
From Latvia’s perspective, any cooperation in these fields would depend on market conditions, commercial interest, and the overall business environment. Latvia sees value in sharing experience and exploring practical formats for cooperation in areas where mutual interests converge, including circular-economy solutions and the further development of the bioeconomy, in line with each country’s priorities and long-term needs," the official added.
The Secretary of State also pointed out that Latvia is on the ball with a steady, sustainable development policy and is pulling its weight in driving climate action, innovation, and the adoption of cutting-edge technologies that pave the way for a green transition.
"This provides a solid basis for structured exchanges with partner countries that are implementing economic modernization measures. Accordingly, Latvia sees good potential for cooperation and knowledge-sharing with Azerbaijan in areas such as energy efficiency, renewable energy solutions, and the development of sustainable industry," Bremšmits concluded.