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Lithuania and Azerbaijan enhance business relations in energy and trade

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Lithuania’s Prime Minister Inga Ruginienė recently visited Baku to bolster the country’s economic and political engagement with Azerbaijan. This visit aimed at strengthening cooperation in key areas such as energy, trade, security, and transport connectivity, as both nations seek to reinforce their sector-based relations between the South Caucasus and the European Union.

Strengthening ties in a changing geopolitical landscape

During her time in Baku, Ruginienė emphasized the necessity of developing closer political and economic relationships amid a rapidly changing geopolitical landscape. She remarked,

“The key priority of visiting Azerbaijan is to strengthen our friendship because today when we have a very dynamic geopolitical situation, it is crucial to have more friends close to each other.”

The Prime Minister highlighted the extensive cooperation across various ministries, which encompasses sectors such as energy, education, agriculture, and defense.

“Each of our ministers has a lot of topics to speak with Azerbaijan’s different sectors’ ministers. We can start from energy then education also agriculture sector and defense,” Ruginienė stated. She also noted the importance of security for both nations, mentioning that increased investments in defense are crucial.

“Security is important to both countries, so we are investing in defense a lot, and we know that Azerbaijan has improved technologies in that area,”

she explained, underscoring the significance of sharing experiences and technologies.

Economic cooperation and strategic opportunities

Economic collaboration remains a core focus of Lithuania and Azerbaijan’s bilateral relations, with both countries exploring avenues to enhance trade and cooperation in logistics, agriculture, digital services, and industrial development. Azerbaijan’s strategic role as a regional transit hub connecting Europe and Asia is viewed as vital for Lithuanian economic interests.

Energy remains a critical area of partnership, especially in light of Europe’s ongoing efforts to diversify its energy sources. Discussions have increasingly turned towards renewable energy, energy efficiency, and green transition technologies in addition to traditional energy supplies. The development of transport connectivity is also becoming more significant, particularly through the enhancement of the Middle Corridor, which serves as a key East-West logistical gateway within the broader connectivity framework between the South Caucasus and the EU.

The ambassador of Lithuania to Baku, Kęstutis Vaškelevičius, stated that Vilnius will advocate for wider engagement with Azerbaijan during Lithuania’s upcoming EU presidency. He remarked,

“Lithuania as a member of European Union contributes a lot, and for us the dialogue between EU and Azerbaijan is a very important one.”

He further noted that Lithuania aims to leverage its position as President of the EU Council next year to strengthen and advance relations between the European Union and Azerbaijan, which is crucial for both parties.

As both nations continue to explore new opportunities, the collaboration in energy, particularly in the context of Europe’s diversification strategy, is likely to remain a cornerstone of their relationship. Azerbaijan’s established role as an energy supplier to European markets further solidifies this partnership, paving the way for future discussions on renewable energy and green technologies that align with the European Union’s climate objectives.

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