Azerbaijan is an increasingly important partner for Italy and for Europe. The peace agreements it has signed with Armenia open up a future of greater stability for the South Caucasus and more secure trade corridors, starting with the multimodal Trans-Caspian International Transport Route, which can bypass Russia and Iran.
Pending the final ratification – scheduled for 2026 – of the agreements that ended the conflict in Nagorno-Karabakh, Azerbaijan has become a fully-fledged member of the initial group of five Central Asian states, transforming the format from C5 into C6 and serving as a bridge between the region and Europe.
In this scenario, Italy, as a major trading partner, is playing an important role in building closer relations with the country. Italian-Azerbaijani relations are incorporated in a broad-ranging strategic partnership in sectors ranging from industry to culture, from trade to defense.
However, the main sector for cooperation continues to be natural gas. The completion of the Trans Adriatic Pipeline (TAP) in December 2020 brought offshore gas from the Caspian Sea to Europe for the first time. With a capacity of 10 billion cubic meters per year – about 8 billion of which are destined for Italy – the TAP has made Azerbaijan the country’s second-largest gas supplier after Algeria. It covers about 16% of Italy’s total imports and, after the block on imports from Russia, has made a significant contribution to energy security.
The planned expansion of the pipeline, which is set to double in capacity by 2030, makes Italy a potential European gas hub. It also strengthens cooperation between the two countries through Italy’s technology exports, not only in oil and gas but also in other crucial areas for the energy transition such as renewables and energy efficiency. Alongside this, investment from Azerbaijan is also growing: Socar, a state-owned company, is poised to be a key player in Italy’s energy infrastructure.
The strength of this energy-based relationship is also extending to other areas. Closer relations in the defense sector, for example, are worthy of note. Cultural and scientific initiatives are also playing a stronger role, thanks to academic cooperation involving five Italian universities and the Azerbaijan Diplomatic Academy in a project that includes more than 5,000 students. Cooperation encompasses a number of scientific and economic sectors, starting with areas in which Italy has an excellent track record, such as agribusiness. The goal is to invest in future leaders in the South Caucasus and foster the construction of long-term relationships.
This has become possible thanks in part to the role Azerbaijan holds in this strategic region, notwithstanding the difficulties arising from the current geopolitical situation. Indeed, Baku has pragmatic relations with key players. Moscow, notwithstanding the occasional tensions, is the country’s third-largest trading partner, while China signed a comprehensive strategic partnership in 2025, bringing bilateral relations to a level not seen since the former Soviet republic gained its independence. Turkey also remains a key ally of the Azerbaijani state, with mutual defense clauses fostering the country’s integration into the NATO military model.
In this framework, the Italy-Azerbaijan partnership represents a virtuous model of cooperation between medium-sized powers in an era of multiple transitions. Both countries share the need to diversify their economies, manage the energy transition while maintaining security of supply, and navigate an increasingly competitive international environment. The goal is to strengthen relations to help build new trade, political, and cultural ties that can help dampen rising tensions in Europe and Central Asia.