Azerbaijan: Crucial transport hub powering ECO’s regional connectivity Article by EU Reporter

The recent 17th Summit of the Economic Cooperation Organisation (ECO), hosted by Azerbaijan in Khankendi, Karabakh, marks a pivotal moment for regional integration and sustainable development in a geopolitically sensitive yet economically promising corridor.

As highlighted in a detailed EU Reporter article, this summit not only underscores Azerbaijan’s expanding leadership within the ECO framework but also symbolises a broader strategic push to reposition the South Caucasus and Central Asia as interconnected hubs of trade, energy, and sustainable progress.

Azerbaijan’s hosting of the Summit in Khankendi—its first major international event in the city following the country’s restoration of full sovereignty over Karabakh—is loaded with symbolic and practical significance. It sends a strong message about the reintegration and reconstruction of the Karabakh region as an integral part of Azerbaijan’s national identity and economic future. This symbolic staging is complemented by substantive engagement through ECO Week, which featured youth and women forums in Aghdam and Lachin and a business forum in Fuzuli, fostering inclusive participation in the region’s socio-economic transformation.

The EU Reporter rightly points out that ECO, comprising eleven member states including Türkiye, Iran, Kazakhstan, and Pakistan, is increasingly evolving as a platform to leverage the vast economic potential of this vast transcontinental region. With a collective GDP surpassing $2.4 trillion and an average annual real growth rate near 3.8%, the ECO region holds significant promise, especially for landlocked Central Asian countries and Azerbaijan, which acts as a crucial gateway to global markets.

Azerbaijan’s strategic emphasis on green transition and interconnectivity, highlighted in its 2023 ECO chairmanship agenda, aligns with global priorities on climate change and sustainable infrastructure. The country’s leadership role is exemplified by key initiatives such as the Clean Energy Centre for the ECO region (CECECO), created in partnership with the United Nations Industrial Development Organisation (UNIDO). This move places Azerbaijan at the forefront of sustainable energy innovation within the region, complementing its historic energy export infrastructure, including the Baku-Tbilisi-Ceyhan pipeline and Southern Gas Corridor.

In transport, the article underscores Azerbaijan’s pivotal role in facilitating regional corridors like the International North–South Transport Corridor (INSTC) and the Middle Corridor (Trans-Caspian International Transport Route). These corridors enhance connectivity between Central Asia, the Caucasus, and Europe, significantly lowering transit costs and boosting trade volumes. The Baku-Tbilisi-Kars railway project is emblematic of these efforts, underscoring Azerbaijan’s ambition to serve as a regional logistics and transport hub, a role increasingly recognised by both regional partners and international stakeholders.

Moreover, Azerbaijan’s growing trade relations within the ECO framework—registering nearly $8 billion in trade turnover in 2024—reflect expanding economic integration. Türkiye remains its largest trading partner, followed by Iran and Kazakhstan, highlighting the interwoven economic interests in the region. This economic momentum reinforces Azerbaijan’s diplomatic leverage within ECO and beyond, including its demonstrated support in international platforms like the UN Security Council.

The EU Reporter analysis also critically addresses the challenges facing the region—geopolitical tensions, infrastructural gaps, and trade barriers—that could impede the ambitious vision set forth during the Summit. The ongoing need to reconcile political complexities while fostering cooperation remains a delicate balancing act for Azerbaijan and ECO members alike.

In conclusion, the article affirms that Azerbaijan’s proactive and strategic leadership within ECO is not merely symbolic but operational, leveraging the region’s economic potential while promoting sustainability and connectivity. By reinforcing its role as an energy exporter, transport hub, and advocate for green transition, Azerbaijan is poised to solidify its position as a key driver of prosperity in the wider Eurasian region. The 17th ECO Summit in Khankendi stands as a testament to this vision—where geopolitical realities and economic ambitions intersect, shaping a future of enhanced regional cooperation and sustainable development.

By Vugar Khalilov