Tuesday, 02 January 2024 12:17 GMT

US Seeks Bigger Role In Azerbaijan's Energy, Transit Expansion


(MENAFN- AzerNews) Akbar Novruz Read more

The United States is seeking a greater role in Azerbaijan's expanding energy and transport infrastructure, signaling a new phase in economic relations between Azerbaijan and the United States as Washington increases its focus on the South Caucasus and the broader Eurasian transit space.

Speaking at the first Azerbaijan–US Economic Dialogue in Baku, Assistant Secretary of State for Economic, Energy and Business Affairs Caleb Orr stated that Washington wants a more direct role in Azerbaijan's pipeline and energy infrastructure projects.

“The United States wants a greater role in the pipeline infrastructure and the other energy infrastructure that Azerbaijan is building,” Orr said.

He also emphasized Washington's support for Azerbaijan's growing role within the Middle Corridor, the strategic trade route connecting Asia and Europe through the Caspian region.

“We expect to help Azerbaijan grow its role as the central node of the Middle Corridor for energy transit, going to Europe and to the rest of the world,” he added.

The US already maintains a presence in Azerbaijan's energy sector through companies such as ExxonMobil and Chevron. Orr noted that ExxonMobil signed a memorandum of understanding for new exploration activities during last year's Baku Energy Week, while Chevron reached a new study agreement during this year's event.

“We think that Azerbaijan is a critical producer of energy for the world right now,” Orr stated.“And the United States really benefits from this relationship, and it's one that we expect to grow significantly over the next few years.”

Commenting to AzerNEWS on the growing momentum in bilateral relations, analyst Peter Tase argued that the first Azerbaijan–US Economic Dialogue demonstrates how cooperation between Baku and Washington is moving into a more practical and strategically focused stage.

“The leadership role of President Ilham Aliyev is the fulcrum of the Azerbaijan - United States strategic economic alliance at a time when Washington is very much interested to expand its global role in energy economics and securing greater supply of rare earth minerals; in this context the Republic of Azerbaijan has earned with hard work and commitment, a very special place in the Economic Statecraft of the Trump - Vance Administration.

The Minister of Economy of the Republic of Azerbaijan Mikayil Jabbarov, is an extraordinary public servant who has been focused constantly towards strengthening the bilateral ties and deepening the economic and energy partnership with the Government of the United States of America.”

According to Tase, Azerbaijan's growing role within regional logistics, energy security, and economic connectivity has elevated its strategic value for Washington at a time when the US seeks broader access to Eurasian and Central Asian markets.

“The ongoing Azerbaijan–U.S. relations are developing in a very impressive trajectory; and the Charter on Strategic Partnership plays an important role in strengthening Baku's indispensable role in the economic progress of the Caucasus Region. Azerbaijan has extensive natural resources and a wealth of achievements in the engineering fields as well as a circular economy; such a marvellous experience propelled and shaped by President Ilham Aliyev places this magnificent nation into the radar of the U.S. Department of State.”

Tase also linked Azerbaijan's expanding regional role to broader transport initiatives such as the Middle Corridor and the Trump Route for International Peace and Prosperity (TRIPP), arguing that these projects could significantly increase regional trade integration.

“There are significant opportunities for Baku to cooperate with Washington and expand the existing trade relations through the Trump Route for International Peace and Prosperity and the Middle Corridor, in this backdrop the Autonomous Republic of Nakhchivan will greatly benefit from this logistical and commercial corridor. TRIPP is indeed the center of regional trade routes and serves as the backbone of land trade connections between Europe and Central Asian Nations.”

According to Tase, Washington increasingly sees Azerbaijan as one of its most reliable partners across the Eurasian space, particularly in areas related to transport, critical minerals, logistics, and digital infrastructure.

“Washington is constantly promoting the development of critical mineral supply chains, and exploring new investment opportunities in transport, logistics, and digital infrastructure; the most loyal and trustworthy partner for Washington in the Eurasian landmass has a name and that is definitely Azerbaijan.

The U.S. Department of State, led by Secretary Marco Rubio is strengthening business ties with Baku and through Baku we will observe a greater level of commercial exchange and growth of economic partnerships between the Trump Administration and various Central Asian Nations, including Uzbekistan, Kazakhstan, Turkmenistan; all these convincing actions are made possible thanks to the strategic location of Azerbaijan, its envied geographic position and vibrant government of this developed nation.”

Tase further argued that the Economic Dialogue reflects Washington's broader geopolitical interest in strengthening access to Central Asia while securing supply chains linked to rare earth minerals and strategic industries.

“The Focus of the Trump Administration towards Baku and the thriving economic alliance between the two nations has been shaped by the need of Washington to have access to Central Asian markets and expand the reach of acquiring more rare earth minerals from Central Asian Nations and here the territory of Azerbaijan comes into play - as an indispensable ally - and knowing its pivotal geographic position and government stability.”

He also highlighted Azerbaijan's growing tourism and hospitality sector as an increasingly important component of the country's economic attractiveness to international investors and visitors from the United States.

“We also are experiencing a greater presence of American tourists into the most luxurious hotels in Azerbaijan including: Pik Palace, Shahdag, Autograph Collection; JW Marriott Absheron Baku; Four Seasons Hotel Baku; Shahdag Hotel and Spa Mountain Resort; Marxal Resort & Spa; Tebriz Hotel Nakhchivan.

I have visited over 65 nations around the world and I must say that tourism economics of Azerbaijan stands as Number ONE and the Gabala Convention Center, officially known as the Heydar Aliyev Congress Center is a magnet for business tourism.”

According to Tase, these infrastructure and tourism assets strengthen Azerbaijan's image as a stable investment destination capable of attracting long-term strategic partnerships.

“These real estate assets that Azerbaijan embodies serve as the nation's passport to attract various strategic investments from the United States and other large countries.”

Tase also emphasized that continuous diplomatic dialogue between Baku and Washington is laying the foundation for broader economic opportunities and stronger long-term cooperation.

“Dialogue and regular meetings are the essence of generating new economic opportunities for the two nations. Caleb Orr, U.S. Assistant Secretary of State for Economic, Energy, and Business Affairs is a successful diplomat, trusted by Secretary Rubio and a stellar public servant who understands extremely well the principal venues of cooperation between Baku and Washington.

During the previous administration of Biden - Blinken, for four years we have seen absolute absence and a defamation campaign against Azerbaijan. Finally with President Trump, all eyes are towards Baku.”

He also pointed to Azerbaijan's growing international investment footprint through projects led by SOCAR, particularly in tourism and real estate development abroad.

“I have to emphasize that Portonovi Resort: Azerbaijan's State Oil Company spearheaded one of the largest foreign investments in Montenegro's tourism sector by developing the massive Portonovi luxury resort. This development includes Europe's first One&Only resort and was originally backed by an investment exceeding €500 million.

These tourism and real estate developments generate trust, economic resilience before the world's most exclusive investors and corporations.”

Tase concluded by highlighting Azerbaijan's broader international engagement and humanitarian initiatives as additional factors strengthening its global standing.

“Another important aspect is international aid that Azerbaijan has provided to many countries in Europe and Latin America. The reconstruction of a public elementary school in Paraguay is a genuine example of how generous the Government of Azerbaijan is in developing education infrastructure in remote countries that are far away from the Caucasus.”

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