Azerbaijan Begins Fuel Exports to Armenia, Marking Historic Economic Breakthrough
In a landmark development for the South Caucasus, Azerbaijan has begun exporting fuel to Armenia by rail for the first time in decades, signalling a tangible step toward normalising relations after years of conflict.
The shipment represents more than a commercial transaction it reflects a shift from political agreements to practical cooperation.
On Thursday, Azerbaijan dispatched 22 rail tanker cars carrying 1,210 tonnes of AI-95 petrol to Armenia.
The fuel, produced by Azerbaijan’s state oil company SOCAR, travelled through Georgia before reaching its destination.
The delivery follows a bilateral agreement signed on 28 November in Gabala, where Azerbaijani Deputy Prime Minister Shahin Mustafayev met Armenian Deputy Prime Minister Mher Grigoryan.
From Conflict to Cooperation
For decades, hostilities and closed borders had severed economic links between the two neighbours.
Officials from both sides described the fuel export as a concrete confidence building measure, demonstrating the economic dividends of peace beyond diplomatic statements.
A key symbolic element of the deal is the revival of rail connectivity, which had been suspended for years due to conflict. Reopening this route lays the groundwork for restoring broader regional transport and trade networks.
Energy Security and Regional Stability
Armenia currently relies heavily on fuel imports, sourcing over 60% from Russia, with the remainder coming from countries such as Iran, Romania, Malta and Turkey.
Access to Azerbaijani fuel could help diversify Armenia’s energy supplies, enhance energy security, and stabilise prices through increased competition.
AI-95 petrol, a premium unleaded fuel, is widely used in modern vehicles and is considered a high quality product across global markets.
A Step Toward Regional Integration
Analysts suggest this agreement could pave the way for expanded trade and revived transport corridors across the South Caucasus, linking Armenia, Azerbaijan and neighbouring states.
If sustained, such cooperation may transform the region from a zone of prolonged rivalry into a hub of connectivity and economic interdependence.
The fuel shipment may be modest in volume, but its political and strategic significance is substantial marking a rare moment where peace translates into progress on the ground.
