Executive Intelligence Snapshot
This report evaluates the strategic consolidation of bilateral ties between Azerbaijan and Uzbekistan following the August 2026 signing of the Treaty on Eternal Friendship in Tashkent and Ilham Aliyev’s state visit to Tashkent.
The bilateral agenda focuses on scaling annual trade turnover to 1 billion US dollars by 2030, enhancing Trans-Caspian transit logistics, and deepening joint investment mechanisms.
These developments strengthen non-energy commercial transit across Eurasia while reducing geographical constraints for doubly landlocked Uzbekistan.
Context
On 23-24 August 2026, Azerbaijani President Ilham Aliyev paid an official visit to Tashkent and met with Uzbekistan President Shavkat Mirziyoyev. At the third council meeting in Tashkent, both heads of state signed the Treaty on Eternal Friendship alongside agreements to increase trade turnover to 1 billion US dollars by 2030, establish city-twinning partnerships, and coordinate foreign ministry programs. Under the treaty, both states commit to non-participation in alliances hostile to the other’s sovereignty and prohibit third-party state usage of their territories against either signee.
Azerbaijan and Uzbekistan established diplomatic relations in 1995, but bilateral ties have accelerated considerably in recent years. The two governments have gradually expanded cooperation from political and cultural relations into investment, transport, energy, industry and other sectors.
A major step was taken in August 2024, when President Ilham Aliyev visited Uzbekistan and the two countries signed the Treaty on Allied Relations. The agreement elevated bilateral relations to an alliance and strengthened the legal and political framework for cooperation. The first meeting of the Supreme Interstate Council was also held during the visit, creating a mechanism for the two presidents to regularly review bilateral projects and establish new priorities.
The second meeting of the Council was held in Baku in July 2025 during President Mirziyoyev’s state visit to Azerbaijan. The two sides reviewed cooperation in areas including transport, energy, agriculture, culture and investment, while also adopting a roadmap for implementing the Treaty on Allied Relations for 2025–2029. The third meeting occurred in August 2026 in Tashkent therefore represents the continuation of an institutional process.
Economic relations have also developed rapidly. According to President Aliyev’s August 2026 interview with Uzbekistan’s national news agency, bilateral trade reached $795 million in 2025, more than three times the previous year’s level. During January–May 2026, trade turnover increased by a further 33 percent compared with the same period of 2025.
Investment cooperation has been supported by the Azerbaijan–Uzbekistan Investment Company, established with $500 million in authorized capital. The company provides a mechanism for financing joint projects and has identified areas such as manufacturing, transport, energy, logistics, healthcare, IT and education as potential investment sectors.
Why Does It Matter?
The development of Azerbaijan–Uzbekistan relations should be viewed within the broader transformation of Central Asian connectivity.
Uzbekistan is Central Asia’s most populous country and occupies a central geographical position within the region. However, it is also doubly landlocked, meaning that access to global markets depends heavily on transport routes through neighbouring countries. Azerbaijan, located on the western side of the Caspian Sea, offers Uzbekistan an alternative and even more reliable connection toward the South Caucasus, Turkey and Europe. This makes transport cooperation one of the most strategically significant elements of the bilateral relationship.
According to President Aliyev, transit transportation between Azerbaijan and Uzbekistan increased by 6.7% in 2025, reaching 1.4 million tons. During the first half of 2026, transit volumes increased by another 12.2% compared with the same period of the previous year. These figures are particularly relevant to the development of the Middle Corridor, which connects China and Central Asia with the Caspian Sea, Azerbaijan, the South Caucasus and Europe. Uzbekistan’s developing railway connections with China, including the China–Kyrgyzstan–Uzbekistan railway, could eventually complement the Middle Corridor and provide a more interconnected network linking East Asia with European markets.
For Azerbaijan, stronger economic ties with Tashkent increase its relevance as a gateway between Central Asia and Europe. For Uzbekistan, the relationship provides another route for exports, imports and investment beyond its immediate neighbourhood. This mutual interest gives the transport partnership a strategic foundation.
Energy cooperation is developing as well. In 2025, Azerbaijan, Kazakhstan and Uzbekistan established the Green Corridor Union. The initiative emerged from the strategic partnership agreement on green energy signed by the three countries during COP29 in Baku in November 2024.
Baku and Tashkent also cooperate within the Organisation of Turkic States and have supported stronger economic, transport and cultural connections among Turkic countries. Azerbaijan’s participation in the Consultative Meetings of the Heads of State of Central Asia has further connected Baku with regional discussions traditionally cantered on the five Central Asian states.
Outlook
President Ilham Aliyev’s August 23–24 state visit will further strengthen the institutional and strategic foundations of Azerbaijan–Uzbekistan relations. The third meeting of the Supreme Interstate Council provides an opportunity to advance existing agreements and identify new areas for cooperation.
The Azerbaijan–Uzbekistan partnership constitutes a permanent structural component of Central Asian and South Caucasus connectivity. Institutional oversight by the Supreme Interstate Council maintains alignment on political, transit, and financial objectives.
Operational risks persist around cross-border coordination. Sustained growth depends on aligning multi-country customs procedures, expanding Caspian port capacity, and securing infrastructure capital for cross-border power transmission.
Primary scenarios indicate a continued rise in Middle Corridor cargo volumes, expanded joint industrial investments, and accelerated energy trade linking Central Asia through the Caspian region directly to European markets.
*Cover image: The meeting between the President of Azerbaijan Ilham Aliyev and the President of Uzbekistan President Shavkat Mirziyoyev (Credits: President.az, CC BY 4.0, via Wikimedia Commons)
