Energy for the digital age Baku and Washington open a new chapter of cooperation 

The visit to Washington by President of Azerbaijan Ilham Aliyev last August marked a starting point, among other things, for accelerating Azerbaijani-American business ties. Since then, the two countries have been engaged in intensive negotiations aimed at implementing joint initiatives in the fields of energy, digital technologies, finance, and logistics projects, steadily expanding their business partnership and trade.

An important step in this direction was the holding on Tuesday, June 2, on the sidelines of Baku Energy Week, of the first meeting of the Azerbaijani-American Economic Dialogue in accordance with the Charter on Strategic Partnership signed by the Azerbaijani president and US Vice President JD Vance in February this year in Baku. Within the framework of the event, jointly organised by the Ministry of Economy of Azerbaijan and the US Department of State, panel sessions were held focusing on regional connectivity and transit, energy, investment, trade, and digital trends.

In his speech at the forum, co-chair of the first meeting of the Azerbaijan–US Economic Dialogue, Minister of Economy Mikayil Jabbarov emphasised that the Charter on Strategic Partnership plays an important role in strengthening economic cooperation: “There are significant prospects for expanding trade ties, strengthening energy security, developing critical minerals supply chains, as well as exploring new investment opportunities in transport, logistics, and digital infrastructure through the ‘Trump Route for International Peace and Prosperity’ (TRIPP) and the Middle Corridor. A constructive dialogue on identifying joint projects, further strengthening business ties, and implementing mutually beneficial initiatives will contribute to bilateral cooperation.”

In turn, co-chair of the meeting, US Assistant Secretary of State for Economic, Energy and Business Affairs Caleb Orr stated that the United States is committed to expanding bilateral opportunities in business, trade, and investment, and that the projects discussed within the framework of the Dialogue will provide momentum for the development of economic cooperation between the two countries.

So, what strategic directions of cooperation were identified as key priorities on the Azerbaijan–US business track?

In particular, during the first session of the meeting in Baku, discussions focused on TRIPP as an important component of the Middle Corridor and on expanding regional logistics capabilities.

It should be recalled that TRIPP is designed to ensure uninterrupted connectivity between the mainland part of Azerbaijan and its Nakhchivan Autonomous Republic, thereby contributing to the development of international trade and multimodal transit across the region. In the context of the sharply increasing demand for freight transportation between China, the countries of Central Asia, and Europe, its implementation is expected to enhance the capacity of the Trans-Caspian route. The overall cargo handling capacity using new railway lines is projected to increase to 15 million tonnes per year.

“When we started TRIPP, we did not understand the complete capacity that it would have. We thought this was a good way to be able to connect Azerbaijan with its exclave and to make sure that there would be permanent peace with Armenia,” US Special Envoy for Peace Missions Aryeh Lightstone told local media. According to him, it later became clear that amid current global developments, regional integration, energy security, and stability have become critically important, and in this context, TRIPP’s capabilities are shaping a resilient and secure connectivity system.

The special envoy also emphasised that while challenges are observed both to the north and to the south, the South Caucasus region—previously not associated with stability—is today one of the most stable areas, characterised by legal certainty, clear rules, and well-defined opportunities, which opens up significant prospects for investors.

In terms of expanding American investments, the key focus remains the energy sector.

Last year, Azerbaijan’s State Oil Company SOCAR and US-based ExxonMobil agreed to jointly participate in exploration work on a major hydrocarbon field in the country. Negotiations are also underway regarding ExxonMobil’s participation in renewable energy (RES) projects in Azerbaijan, as well as cooperation in methane emission reduction technologies, optimisation of operational costs, and the introduction of modern technologies to enhance oil and gas production.

As Caleb Orr noted on Tuesday, “companies such as ExxonMobil and Chevron have been an important part of the oil and gas industry, and our partnership is growing and expanding.” He added: “We are increasing investments in Azerbaijan’s energy sector, turning this foundation into a broader platform of cooperation. Thus, within Baku Energy Week 2026, we held a meeting with ExxonMobil, which last year signed a memorandum of understanding on new exploration works in Azerbaijan. Chevron has also signed a new agreement on exploration in the Republic of Azerbaijan.”

The Assistant Secretary of State for Economic, Energy and Business Affairs also emphasised that, in a broader sense, the United States intends to increase its presence in Azerbaijan’s energy and pipeline infrastructure, and that Washington expects the country to further strengthen its position as one of the key hubs for transporting energy resources to Europe and other markets.

He noted that this week American companies signed agreements worth more than $8 billion, covering not only energy but also other sectors, including the involvement of investment funds such as Apollo in Azerbaijan’s energy sector.

In turn, Minister of Economy Mikayil Jabbarov stated at a press conference dedicated to the first Azerbaijan–US Economic Dialogue that the signing of a framework agreement on cooperation between Azerbaijan and the United States in the field of critical minerals is of major importance. “This agreement opens a new chapter in economic cooperation and will contribute to the development of a sector that is crucial for the modern economy. We look forward to cooperation with American companies specialising in this field and are ready to benefit from their knowledge and experience,” he said.

Equally promising is the partnership in the financial sector, including cooperation with companies experienced in alternative investment management. In this regard, a pool of American firms is already being formed to expand cooperation with the State Oil Fund of Azerbaijan (SOFAZ). To jointly finance strategic projects, the creation of an Azerbaijan–US investment platform has also been proposed, and work in this direction has begun together with the US Export-Import Bank (US EXIM Bank).

Another important pillar of the Charter is the two countries’ commitment to partnership in the high-tech sector. This includes attracting US vendors, software developers, and know-how to Azerbaijan to develop artificial intelligence technologies, cooperation in the space industry, investments in digital infrastructure, and the joint implementation of data centre projects.

The strategic document also enshrines readiness to establish specialised Azerbaijan–US mechanisms, such as tools supporting joint R&D, innovation bridge platforms, and sectoral initiatives in cybersecurity, as well as encouraging private venture capital, supporting start-ups, and partnering in training a skilled workforce for the IT sector.

The United States stands ready to expand cooperation in the field of artificial intelligence to upgrade Azerbaijan's digital infrastructure and secure its security, Caleb Orr, US Assistant Secretary of State for Economic, Energy, and Business Affairs, said at a press conference. “With the potential of artificial intelligence to drive unprecedented prosperity, we laid out the path for increased adoption of AI technology to upgrade and secure Azerbaijan's digital infrastructure,” he added.

Following the first meeting of the Azerbaijan–US Economic Dialogue, a number of documents were signed in the areas of digital infrastructure development, technology transfer, and the application of efficient industrial solutions in Azerbaijan. It was also announced that, in order to expand cooperation in the IT sector, Baku will host the 2nd US World Artificial Intelligence Week in 2026.