Azerbaijan and Uzbekistan Deepen Alliance in Karabakh

In a significant demonstration of their burgeoning strategic partnership, Uzbek President Shavkat Mirziyoyev and Azerbaijani President Ilham Aliyev visited the Karabakh region on July 3. The visit underscores Uzbekistan’s role as a key ally in the region’s reconstruction efforts, which it is partially financing. The leaders are also set to attend the 17th summit of the Economic Cooperation Organization (ECO) in Khankendi, the administrative center of Karabakh, signaling the area’s increasing integration into regional diplomacy.

The visit followed the second meeting of the Azerbaijan-Uzbekistan Supreme Interstate Council in Baku, where the two nations signed a comprehensive package of documents. These agreements aim to bolster cooperation across a wide range of sectors, including industry, infrastructure, agriculture, healthcare, tourism, and banking, building on a treaty on allied relations signed in Tashkent last year.

Economic ties are rapidly expanding, with bilateral trade surging by 40% in the first half of 2025 to over $200 million. The countries have set an ambitious target to increase this figure to $1 billion by 2030. This growth is supported by a joint Uzbek-Azerbaijani Investment Fund, initially capitalized at $500 million, which has already financed projects exceeding $360 million, from residential complexes in Tashkent to manufacturing enterprises in the Qashqadaryo region.

President Aliyev highlighted Uzbekistan as a priority for Azerbaijani investment, praising the country’s favorable investment climate created by President Mirziyoyev’s reforms. “It is no coincidence that today Uzbekistan is a very attractive country for investment,” Aliyev stated, noting that Baku’s investment plans significantly exceed the fund’s initial capital.

Strategic transport corridors are a central pillar of the partnership. Uzbekistan is actively leveraging Baku’s infrastructure to integrate its trade routes into the Trans-Caspian International Transport Route. In 2022, the volume of Uzbek cargo transiting through Azerbaijan doubled, and discussions are underway to establish joint logistics companies and warehouse hubs to further streamline trade and diversify Uzbekistan’s access to sea routes amid global logistical instability.

During the visit, President Aliyev expressed gratitude for Uzbekistan’s assistance in Karabakh’s revival, pointing to a school named after the historic scholar Mirzo Ulugbek, built with Uzbek support, as the first such project in the region. The deepening ties were further symbolized by the inauguration of a new Uzbek embassy building in Baku, with Mirziyoyev remarking, “Never in history have our relations been at such a high level as they are today.”

This diplomatic activity coincides with the large-scale “Anadolu-2025” special forces exercises in Turkey, which include military personnel from Organization of Turkic States (OTS) members Azerbaijan, Uzbekistan, Hungary, and Kazakhstan, alongside partners like the United States and Pakistan. The drills focus on enhancing interoperability and military cooperation among the 19 participating nations.

According to Alexander Kobrinsky, director of the Agency for Ethno-National Strategies, these developments underscore Azerbaijan’s growing international stature. “Hosting such significant events highlights the strengthening of Azerbaijan’s position and President Aliyev’s authority in both the South Caucasus and Central Asia,” he noted. However, Kobrinsky also cautioned that the continued institutional growth of the OTS could potentially lead to a reduction in the national sovereignty of its member states, urging a balance between strengthening Turkic world cooperation and preserving the autonomy of each participant.