Azerbaijan Signs Trade and Transport Deals with Central Asian States

Azerbaijan signed agreements with Turkmenistan in late June 2026 to expand energy cooperation and regular goods shipments across the Caspian Sea. Since the start of July, Baku launched similar initiatives with Kazakhstan and Uzbekistan to strengthen the Middle Corridor trade route. Uzbekistan and Azerbaijan plan to build and operate a joint trans-Caspian cargo fleet.

The two countries are also streamlining tariff rules and transit procedures for seaborne cargo. Officials intend to develop a joint logistics hub near Baku’s port that connects to Azerbaijan’s rail network. Uzbek-Azerbaijani trade volume increased almost 43 percent in the first quarter of 2026 from the same period in 2025, reaching $80.1 million.

The countries aim to reach $1 billion in annual trade turnover by 2030. Kazakh and Azerbaijani officials announced a digital permit system for road transport that will take effect in 2027. Deputy Uzbek Trade Minister Khurram Teshabayev said the initiatives will improve multimodal transport efficiency and reduce costs for exporters.

Initial projections for a planned trans-Caspian power cable call for up to 5 gigawatts of electricity capacity by 2030. Teshabayev stated that Uzbekistan’s export capacity via the line might be as low as 2 gigawatts. Kazakhstan and Uzbekistan currently face electricity deficits while pursuing economic growth plans.

Teshabayev noted that cargo volumes along the Middle Corridor route have grown steadily and the range of exported products is expanding.