Azerbaijan–Italy: From energy to education Caliber.Az review

The strategic nature of Azerbaijan–Italy bilateral relations is most evident in the business sector. Italy ranks first in Europe and globally in terms of trade with Azerbaijan, largely driven by Azerbaijani oil and gas exports, which have increased following the commissioning of the Trans-Adriatic Pipeline (TAP). At the same time, the two countries are actively developing business ties in the non-oil sector.

A two-day official visit to Azerbaijan by Italian President Sergio Mattarella opened a new chapter in the partnership, extending also to the field of education. On the eve of the visit, and with the participation of both heads of state in Baku, the student campus of the new Italian-Azerbaijani University was officially inaugurated.

“In the economic sphere, Italy is our top trade partner and our trade turnover is increasing by the year. Many important projects have been implemented in the energy sector. In particular, by exporting Azerbaijani oil and gas to Italy, we have been able to send a large amount of natural resources to world markets. At the same time, we have also contributed to the energy security of many countries,” Azerbaijani President Ilham Aliyev said during a joint press statement with the two heads of state. “Today's visit shows that Italian-Azerbaijani relations are developing very successfully and that we are true strategic partners.”

Italy has served as a key energy hub for Azerbaijani oil exports for more than two decades. A significant portion of Azerbaijani crude arriving at Türkiye’s Mediterranean port of Ceyhan is transported through Italian terminals in Trieste and Augusta. Today, Italy remains the largest market for Azerbaijani oil.

In 2023, Azerbaijan delivered around 11.3 million tonnes of oil to Italy, a 25% increase compared to the previous year. Although deliveries dipped slightly in 2024, they still reached 9.3 million tonnes, maintaining Italy’s status as the country’s primary hydrocarbon market.

Oil exports to Italy surged again in January–August 2025. According to the State Customs Committee, 9.198 million tonnes were shipped during this period, representing a 47.7% increase in value to $4.802 billion.

Meanwhile, for the fifth consecutive year, Azerbaijani natural gas has been supplied to Italy under the Southern Gas Corridor (SGC) project, whose key component is the Trans-Adriatic Pipeline (TAP). In 2024 alone, Azerbaijan delivered 10.315 billion cubic metres of gas to Italy, a 3.3% increase compared to the previous year. In the first quarter of 2025, Italy accounted for nearly 40% of Azerbaijan’s total gas exports. According to recent statistics, over three-quarters of the gas exported to Europe via TAP goes to Italy. These deliveries have become a crucial factor in strengthening Azerbaijan–Italy business cooperation and a key element of the EU’s energy security.

It is no surprise, therefore, that the energy sector acts as a catalyst for broader bilateral economic relations, cementing Italy’s status as Azerbaijan’s main foreign trade partner both within the European Union and globally. In turn, Azerbaijan is Italy’s key trading partner in the South Caucasus, accounting for nearly 90% of the region’s total trade volume. In particular, in the first eight months of 2025, mutual trade between the two countries reached approximately $8.3 billion, with the lion’s share coming from Azerbaijani exports.

Azerbaijan–Italy energy cooperation dates back to the late 1990s, when Italian oil companies participated in the exploration and production sharing of Caspian Sea fields under the “Contract of the Century” and acquired a 5% stake in the Baku–Tbilisi–Ceyhan pipeline. In addition, Italian company Eni-Agip has been actively involved in the Shah Deniz gas-condensate project and the Kurdashi oil field. Overall, Italian businesses have invested around €800 million in Azerbaijan’s economy, while Azerbaijani direct investments in Italy are estimated at €1.7 billion.

Over the past decade, the two countries have developed strategic partnership relations: the first agreement on strategic cooperation was signed in 2015, followed by the 2020 “Joint Declaration on Comprehensive Strategic Partnership.” Today, Baku and Rome are rapidly strengthening mutually beneficial cooperation in the non-oil sector and advancing joint humanitarian initiatives. “Last time, when President Mattarella was on a visit to Azerbaijan, we jointly attended the opening of a large industrial enterprise built by Italian companies in Sumgayit,” President Ilham Aliyev reminded the press. This refers in particular to the region’s largest project—the construction of a polypropylene plant in Sumgayit, implemented by SOCAR with the design and technical support of the major Italian holding Maire Tecnimont.

Recently, Baku and Rome have been strengthening cooperation in mainstream sectors such as renewable energy (RES) and biotechnology. Last year, three memoranda of understanding were signed between Eni S.P.A. and various Azerbaijani state bodies, including agreements with the Ministry of Agriculture and SOCAR in the fields of biofuels and biomass. The Italian company CESI was engaged as a partner of Azerbaijan’s Ministry of Energy to prepare a feasibility study for a “green” energy corridor from the Caspian through Azerbaijan and Georgia, across the Black Sea to Romania and Hungary. Since mid-2024, negotiations have been underway with another Italian company, Saipem, on projects for onshore and offshore wind energy in the Caspian and other RES initiatives.

Italian contractors and equipment suppliers have also been involved in large-scale infrastructure projects in Azerbaijan’s territories liberated from occupation. For example, Ansaldo Energia participated in the construction of substations and other energy infrastructure facilities. Gas turbines and generators for the powerful “8 November” power plant in Mingachevir, commissioned this year, were produced by Ansaldo Energia specifically for this project. In April 2025, with the participation of the Azerbaijani president, a launch ceremony was held at the Sumgayit Chemical Industrial Park (SCIP) for the Az-Tex-Import plant, producing IVECO trucks and special-purpose vehicles based on advanced Italian technologies.

This year, investment cooperation between Azerbaijan and Italy has also taken a reverse turn. During the recently held 1st Azerbaijan International Investment Forum in Baku, a tripartite share purchase agreement was signed between SOCAR and the Italian companies Italiana Petroli S.p.A. and MIP S.p.A., resulting in SOCAR acquiring 99.82% of Italiana Petroli—the largest integrated downstream platform in Italy. The company operates a network of thousands of gas stations nationwide, two oil refineries with a combined capacity of around 10 million tonnes per year, sells specialised products (bitumen, aviation fuel, lubricants), and manages the national logistics system.

Yesterday’s official visit to Azerbaijan by Italian President Sergio Mattarella was also marked by another significant event, highlighting cooperation in the educational sector. The heads of state participated in the opening of the first academic buildings of the Italian-Azerbaijani University in Baku, meeting with visiting Italian university leaders, professors, and students of the new institution. Construction of the university campus began in April 2024 as part of a joint project between Azerbaijan’s ADA University and five leading Italian universities—LUISS University, Politecnico di Milano, Politecnico di Torino, the University of Bologna, and Sapienza University of Rome.