Exploring Azerbaijan's Unique Position In Europe

Azerbaijan is a transcontinental country straddling Eastern Europe and Western Asia. It is a part of the South Caucasus region and is bounded by the Caspian Sea to the east, Russia's republic of Dagestan to the north, Georgia to the northwest, Armenia and Turkey to the west, and Iran to the south. The territory of what is now Azerbaijan was first ruled by Caucasian Albania and later various Persian empires. Baku is the capital and largest city.

Azerbaijan's relationship with the European Union

Azerbaijan, officially the Republic of Azerbaijan, is a transcontinental country at the boundary of Eastern Europe and West Asia. It is a part of the South Caucasus region.

Since 1991, the EU has gradually become closer to Azerbaijan. The EU wants to deepen economic integration and increase political cooperation with the country. The EU is Azerbaijan's first trading partner, the biggest export and import market, and the biggest investor for the country. The EU supports closer economic integration with Azerbaijan through the European Neighbourhood Policy (ENP) and the Eastern Partnership initiative. Azerbaijan is receiving technical assistance from the EU to help it become a World Trade Organization member.

The EU and Azerbaijan have worked together to conclude various political agreements. The most important is the EU-Azerbaijan Partnership and Cooperation Agreement (1999) which aims to enhance trade, investment, the economy, legislation and culture within the framework of the EU-Azerbaijan Partnership and Cooperation. Azerbaijan is also the part of the European Neighbourhood Policy (ENP) and the Eastern Partnership initiative, and a member of the Organisation of the Black Sea Economic Cooperation (BSEC).

In 2016, a Protocol on Azerbaijan's participation in EU Programmes and Agencies was adopted. Key items included on the plan are investment in Azerbaijan's infrastructure, partial integration of the Azerbaijani economy into Europe's, and partnerships with Azerbaijan on extracting oil from the Azerbaijani-controlled part of the Caspian Sea.

In February 2017, the EU and Azerbaijan launched negotiations to replace the original agreement adopted 20 years prior. Discussions on updating the legal basis for relations between the EU and Azerbaijan were ongoing as of 2018.

In July 2022, the European Commission signed an agreement with Azerbaijan to increase natural gas imports.

Azerbaijan's status as a transcontinental country

Azerbaijan is a transcontinental country, with parts of its territory in Eastern Europe and parts in Western Asia. It is part of the South Caucasus region and is bounded by the Caspian Sea to the east, Russia's republic of Dagestan to the north, Georgia to the northwest, Armenia and Turkey to the west, and Iran to the south. The exclave of Naxçıvan (Nakhichevan) is located southwest of Azerbaijan proper, bounded by Armenia, Iran, and Turkey.

The country's history and culture are closely tied to the Persian and Turkic spheres, and it has historically had more interaction with Asian nations than European ones. However, its relationship with Europe has strengthened since its independence from the Soviet Union in 1991, and it is now a member of the Council of Europe and the European Neighbourhood Policy (ENP). The European Union is Azerbaijan's largest foreign grant donor and investor, and the two have worked together on various political and economic agreements.

The border between Europe and Asia is often considered to be the Greater Caucasus mountain range, which forms part of Azerbaijan's northern boundary. Some parts of northern Azerbaijan and Georgia are geographically located in Europe, while Armenia is entirely in Asia.

Due to its unique position, Azerbaijan is often considered a blend of European and Asian traditions and influences.

The country's history of Soviet occupation

Azerbaijan's history with the Soviet Union began in the early 20th century, when the country was still known as the Azerbaijan Democratic Republic. In 1920, the country was invaded by Soviet forces, which led to the establishment of the Azerbaijan SSR. The country was then incorporated into the Soviet Union, and remained under Soviet rule until the collapse of the Union in 1991.

During the early Soviet period, the Azerbaijani national identity was forged. The country was officially known as the Azerbaijan Socialist Soviet Republic, and later the Azerbaijan Soviet Socialist Republic. In 1937, the Constitution of Azerbaijan SSR was approved by the 9th Extraordinary All-Azerbaijani Congress of Soviets.

In 1941, the Soviet Union occupied Iranian Azerbaijan, leading to a revival of Pan-Azerbaijani nationalism. During this time, the Azerbaijani literary language was promoted with the help of writers, journalists, and teachers from Soviet Azerbaijan. An autonomous "Azerbaijan People's Government" was set up in Tabriz, leading to speculation about a possible unification of the two Azerbaijani republics. However, under pressure from Western powers, the Soviet army was withdrawn, and Iranian Azerbaijan was once again under Iranian control by the end of 1946.

In the 1960s, signs of a structural crisis in the Soviet system began to emerge, and Azerbaijan's oil industry lost its relative importance to the Soviet economy. Heydar Aliyev was appointed as the first secretary of the Communist Party of Azerbaijan in 1969, and he temporarily improved the economic conditions by promoting alternative industries to the declining oil industry.

In the late 1980s, during the Gorbachev era, increasing unrest in the Caucasus emerged, initially over the Nagorno-Karabakh issue. The Communist Party was unable to effectively address the growing ethnic strife, and independent publications and political organizations began to emerge. The most prominent of these was the Popular Front of Azerbaijan, which gained significant popular support by the fall of 1989.

The unrest culminated in a crackdown by the Red Army, which aimed to silence the growing demands for independence. On January 20, 1990, at least 132 demonstrators were killed by Soviet troops in Baku. Despite this, Azerbaijan participated in a union-wide referendum to preserve the union as the Union of Soviet Sovereign Republics, which passed with 93.3% of the vote.

However, the 1991 Soviet coup d'état attempt accelerated declarations of independence by Soviet Socialist Republics, and Azerbaijan adopted its declaration of independence on October 18, 1991. The final dissolution of the Soviet Union took place on December 26, 1991, shortly after which Azerbaijan joined the Commonwealth of Independent States.

The Nagorno-Karabakh conflict

The conflict can be traced back to the early 20th century when the region was part of the Azerbaijan Democratic Republic, the first secular democratic Muslim-majority state. In 1920, the country was conquered and incorporated into the Soviet Union as the Azerbaijan SSR. During the Soviet period, Armenians in the Nagorno-Karabakh Autonomous Oblast faced heavy discrimination, with Soviet Azerbaijani authorities working to suppress Armenian culture and identity in the region.

In 1988, as the Soviet Union began to collapse, ethnic Armenians in Nagorno-Karabakh demanded the transfer of the region from Soviet Azerbaijan to Soviet Armenia. This led to a series of pogroms against Armenians across Azerbaijan, followed by violence committed against both Armenians and Azerbaijanis. The conflict escalated into a full-scale war in the early 1990s, known as the First Nagorno-Karabakh War, resulting in tens of thousands of casualties and the displacement of over a million people.

A Russian-brokered ceasefire was signed in 1994, leading to two decades of relative stability. However, tensions remained high, with intermittent clashes and violations of the ceasefire agreement. In April 2016, intense fighting at the line of separation killed hundreds on both sides.

In September 2020, full-fledged war resumed, resulting in six weeks of bloody armed conflict. A ceasefire brokered by Russia ended the fighting, but not before thousands of military and civilian deaths. Under the agreement, Azerbaijan regained control of the seven districts adjacent to Nagorno-Karabakh and a substantial part of Nagorno-Karabakh itself. The rest of the region is patrolled by a Russian peacekeeping force but is still governed by self-proclaimed local authorities.

Despite the ceasefire, tensions persist, with Azerbaijan tightening its control over the region and restricting access for humanitarian aid. In September 2023, Azerbaijan launched an offensive against the breakaway Republic of Artsakh in Nagorno-Karabakh, resulting in the dissolution and reintegration of Artsakh in January 2024 and the flight of nearly all ethnic Armenians from the region.

Azerbaijan's economic and trade relations with the EU

Azerbaijan is a transcontinental country at the boundary of Eastern Europe and West Asia. It has been a member of the Council of Europe since 2001 and maintains good relations with the European Union. The EU is Azerbaijan's main trading partner, accounting for around 48-49% of its total trade. The EU is Azerbaijan's biggest export market, with a 60.7% share in Azerbaijan's total exports. The EU's exports to Azerbaijan consist primarily of machinery and transport equipment, while EU imports from Azerbaijan cover mainly oil and gas (98% of total imports).

The economic and trade relations between the EU and Azerbaijan are regulated by the Partnership and Cooperation Agreement (PCA), which has been in force since 1999. The PCA aims to enhance trade, investment, the economy, legislation, and culture within the framework of the EU-Azerbaijan Partnership and Cooperation. The agreement does not include tariff preferences but eliminates trade quotas between the EU and Azerbaijan, with the aim of drawing Azerbaijan's standards closer to those of the EU.

In 2017, the EU and Azerbaijan began negotiations on a new comprehensive framework agreement to increase political dialogue, trade, and mutually beneficial cooperation in various economic areas. The EU perceives several economic, political, and strategic advantages in collaborating with Azerbaijan, linked to its geographic location as a producer and its existing engagement through the European Neighbourhood Policy and the Eastern Partnership.

The EU and Azerbaijan also share common interests in several policy areas and are working jointly to upgrade their cooperation efforts. In addition to the energy sector, Azerbaijan's role as a key transportation hub is of particular importance to the EU. The EU intends to expand mutual economic relations by establishing an economic advisory platform that will enhance and strengthen the scope for regional relations with other actors.

The EU supports Azerbaijan's economic diversification through the negotiation of a new agreement and its accession to the World Trade Organization (WTO). The EU is also seeking to support Azerbaijan's economic modernization by strengthening youth education, entrepreneurship, and regional development.

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