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Eurasianet is an independent news organization that covers news from and about the South Caucasus and Central Asia, providing on-the-ground reporting and critical perspectives on…
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By Eurasianet – Feb 20, 2025, 2:00 PM CST
- Azerbaijani leaders are displeased with Russia’s response to the downing of a jetliner, but trade considerations remain a key priority.
- The expansion of the North-South Corridor, connecting Iran and Russia through Azerbaijan, is moving forward with new agreements and investments.
- Despite political tensions, both Azerbaijan and Russia are actively pursuing increased trade and connectivity in the Caspian Sea region.
Azerbaijani leaders are still seething over Russia’s refusal to take responsibility for causing the deaths of 38 people in the accidental shoot-down of an Azerbaijani jetliner over Russian territory. But Baku’s anger is not getting in the way of trade considerations.
The state-controlled Azerbaijani press continues to express indignation and defiance over Russia’s response to the December 25 jetliner incident, which a preliminary investigation confirmed was caused by “external” metal objects, or anti-aircraft flak. Rather than admit to making a mistake, Russian media repeated disproven theories about the cause of the crash, while prominent Russian officials derided Azerbaijan leaders for being “overly emotional” and uppity, calling out President Ilham Aliyev by name.
A commentary published February 18 by the News.az website stated that if Russia does not soon change its diplomatic tune, “Moscow’s standing in the South Caucasus could continue to erode, pushing Baku to further deepen its alliances elsewhere.”
For the time being, Aliyev, despite the personal insults coming from Russia, is keeping his options open. In a move that did not receive much media attention, the Azerbaijani leader on February 11 ratified an agreement concluded in late 2024 to expand the North-South corridor, connecting Iran and Russia via Azerbaijan. The 2024 bilateral agreement provides for the modernization of road and rail infrastructure to accommodate an expanding volume of trade.
The Iran factor in the North-South corridor is a major consideration for Aliyev. On February 18, the Trend news agency reported that at a meeting in Tehran, officials from Azerbaijan, Russia and Iran agreed on a plan to build the Rasht-Astara railway on Iranian territory. The announcement occurred on the sidelines of the 3rd Caspian Forum.
The three states first announced their intention to build the Rasht-Astara rail route in 2023, but construction has been held up by questions over financing and other logistical issues. Officials did not disclose specifics of their agreement, including projected costs and construction deadlines. Iranian Minister of Roads and Urban Development Farzaneh Sadegh indicated that a detailed plan would be published soon. When completed, the roughly 100-mile stretch of railway will connect Astara at the Azerbaijani border to the Caspian city of Rasht, thus filling the last gap in the North-South rail route.
In a speech at the Caspian Forum, Azerbaijani Prime Minister Ali Asadov said Baku was ready to allocate additional funds to rail projects facilitating both North-South and East-West trade. He did not articulate a specific dollar amount, but indicated expanding Azerbaijan’s trade connectivity in all directions was a matter of national security.
“We believe that Caspian Sea states must continue their efforts to preserve the Caspian Sea as a region of peace, harmony, good neighborliness, and effective international cooperation,” he said.
Meanwhile, Rahman Mustafayev, Baku’s envoy in Moscow, recently met with Igor Babushkin, the governor of the southern Astrakhan Region of Russia, according to a February 17 report published by the Haqqin information portal. The two reportedly discussed ways to make Caspian seaborne trade more efficient.
“The meeting in Moscow proves that Russian-Azerbaijani relations are a complex, multifaceted system capable of withstanding acute conflict stages, without destroying the strategic line” of expanding trade links, the Haqqin report commented.
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Eurasianet
Eurasianet is an independent news organization that covers news from and about the South Caucasus and Central Asia, providing on-the-ground reporting and critical perspectives on…
