AGP Executive Report

Middle Corridor: PMCG says the Trans-Caspian “Middle Corridor” must evolve into a true economic corridor to unlock investment and industrial growth, not just move freight. Energy & logistics: Central Asia faces a fuel squeeze as Russia restricts diesel exports; Kyrgyzstan, Kazakhstan, Tajikistan and Uzbekistan are scrambling for alternative supplies. Azerbaijan–Uzbekistan trade links: Uzbekistan and Azerbaijan plan a joint Caspian fleet and a venture between Uztemiryulkargo and ASCO to speed cargo along the Middle Corridor. Aviation & digital growth: Azerbaijan Airlines signed an Amadeus deal to boost revenue management and distribution, accelerating its digital transformation. Regional connectivity: Azerbaijan and Turkmenistan relations enter a new strategic phase, with multiple agreements tied to energy, transport and Eurasian integration. Culture & tolerance: Euronews highlighted Azerbaijan’s centuries-long multicultural and interfaith coexistence. Public safety: A bus overturned on the Baku–Gazakh highway near Muğan village, injuring more than 30 people. Sports: Azerbaijan won 12 medals at the SCALABISCUP gymnastics tournament; shooter Ruslan Lunyov took European Cup gold.

Karabakh Restoration & Community Return: President Ilham Aliyev visited Khojavend’s Guzeykhirman and Guneykhirman villages, meeting returning residents and reviewing house and infrastructure restoration after the 2023 liberation, with plans for further family returns and social projects. Shusha Revitalization: Aliyev also inspected restoration and new buildings tied to Shusha’s comeback, including the restored Sadigjan House and the “Yasaman” Hotel complex, plus progress on Garabagh Street public-private partnership projects. Sports Spotlight: Azerbaijan’s Haji Karimov won U20 European wrestling gold in Skopje with a 10-0 final win, while other Azerbaijani wrestlers advanced to medal matches. Road Safety: A bus overturned on the Baku–Gazakh highway near Muğan village, injuring more than 30 people, including children. Archaeology Find: Excavations at Pasha Tepe in Jalilabad uncovered a rare polished stone sphere from the Neolithic period with no known parallels in the South Caucasus. Fiscal Update: Azerbaijan’s external public debt fell to about $4.62B as of July 1, 2026, as the government continued debt reduction.

Karabakh Restoration: President Ilham Aliyev visited Guzeykhirman village in Khojavend, meeting returning residents and reviewing restoration of homes and social infrastructure after the 2023 liberation. Shusha Revitalization: He also reviewed the “Yasaman” Hotel restoration in Shusha and inspected progress on Garabagh Street’s public-private partnership project, alongside attending the opening of the restored Sadigjan House. Green Energy in Lachin: Aliyev attended the inauguration of Hochaz River hydropower stations and laid the foundation stone for the Hakarichay Reservoir, aimed at drinking water supply for hundreds of thousands and boosting water management in liberated areas. Defense Cooperation: Azerbaijan’s Defense Minister Zakir Hasanov is in Türkiye for official military training and graduation events. Legal Cooperation: Azerbaijan’s Prosecutor General’s Office executed a Montenegro legal assistance request, including DNA collection and examinations in a murder case. Sports & Culture: Azerbaijan’s Flame gymnastics team won gold in Italy; Shusha hosted major restoration openings; and Azerbaijan’s religious tourism push highlights growing interest in faith heritage. Economy Watch: Azeri Light crude slipped below $78/bbl, while Azerbaijan’s chemical imports from Türkiye rose 3.3% in H1 2026.

Economy Watch: Azerbaijan’s GDP grew 0.8% in the first half of 2026, with non-oil growth gaining momentum, while strategic foreign exchange reserves rose to $85.77B and external public debt fell to $4.62B. Peace Process: Baku says a peace deal with Yerevan hinges on Armenia removing territorial-claim references from its constitution, as Pashinyan insists enclaves-exclaves talks must continue under legal and cartographic principles. Border & Enclaves: Bayramov says border delimitation is progressing north-to-south and enclave issues remain on the agenda, while Pashinyan rejects abandoning the matter, citing Artsvashen. Energy & Connectivity: Work to get Azerbaijan-Georgia electricity transit and the “Green Corridor” project onto the EU’s PMI list moves forward, aiming at co-financing and investment. Public Safety: Heavy rains and flooding hit parts of Azerbaijan, damaging homes and infrastructure and killing one person in Balakan. Finance & Crime Fighting: Azerbaijan hosted Egmont Group FIU plenary and highlighted cooperation on anti-money laundering and stolen asset recovery, including major international recognition for EFCC-NFIU efforts. Culture & Heritage: Azerbaijan’s cultural heritage protection agency won an international award for public engagement and digital heritage services.

Armenia-Azerbaijan Peace Talks: Azerbaijan’s key precondition for signing a peace deal is constitutional change in Yerevan to remove territorial-claim language, with Baku saying the treaty can be signed once those references are removed from Armenia’s constitution. Enclaves-Exclaves: Armenian PM Nikol Pashinyan insists the enclaves-exclaves issue is still on the agenda and must be solved under the 1991 Alma-Ata Declaration, citing Artsvashen’s exclave status under Azerbaijan’s control. OSCE Role in Church Crackdown: OSCE Secretary General Feridun Sinirlioglu, a Turk, reportedly promised to help oust Armenia’s Catholicos Karekin II after a call involving Russian pranksters posing as Pashinyan. Green Corridor for EU Funding: Romania-led Green Corridor steps forward as EU officials prepare to list the project as a Project of Mutual Interest, a move aimed at unlocking EU co-financing. Energy and Connectivity: TAP says it has delivered over 60 bcm of natural gas to Europe since operations began, while Azerbaijan and Georgia also move ahead on electricity supply and transit. Culture and Heritage: Azerbaijan’s cultural heritage agency wins an international award for public engagement and digital heritage services, and a “Stone Chronicle of Karabakh” photography competition is launched. Tech and Business: Azerbaijan Airlines signs with Amadeus to speed up digital transformation, and Azerbaijan, China deepen scientific cooperation via ANAS initiatives. Sports: Azerbaijan reaches the final of the Special Olympics Unified World Cup in Paris.

Peace Process Update: Azerbaijan says it has completed the final development of the Armenia peace agreement, with Foreign Minister Jeyhun Bayramov linking any signing to constitutional changes in Yerevan removing territorial claims. Border & Diplomacy: Bayramov also pointed to positive dynamics in Armenia-Azerbaijan border delimitation and said Azerbaijan has fulfilled its obligations to finalize the deal. Humanitarian Outreach: Veronika Zonabend, wife of former Artsakh leader Ruben Vardanyan, renewed calls for international support for a humanitarian mission to visit Armenian detainees in Baku, seeking coordination with Armenian and EU officials. Legal Case in Baku: Activist Nargiz Mukhtarova was sentenced to a conditional term in a case tied to alleged legalization of illegal income, with reporting that prosecutors sought to drop part of the charges due to a statute of limitations. Regional Connectivity: Azerbaijan and Uzbekistan are exploring a joint Caspian maritime fleet, framed as a step toward deeper Eurasian trade routes. Energy & Trade: Azerbaijan’s exports to Kazakhstan rose 12.7% in Jan–May, while officials also discussed Caspian-Europe green energy corridor implementation and regional economic cooperation with Turkmenistan. Sports & Culture: Azerbaijan’s London embassy congratulated Qarabag’s Camilo Duran on his reported Celtic transfer as he trains in Portugal; separate coverage highlights Azerbaijan’s cultural and sports activity, including international participation by athletes.

Human Rights & Justice: The Council of Europe’s human-rights commissioner asked Azerbaijan for explanations over the detention case of journalist Afgan Sadigov, after Azerbaijan resumed a criminal case and courts upheld his arrest. Migration & Security: Pakistanis are reportedly being lured to Azerbaijan via fake tourism packages before attempting illegal “donkey route” crossings into Europe, with thousands failing to return home on record. Regional Connectivity: Azerbaijan says it has completed its part of work for a peace agreement with Armenia, while talks on TRIPP continue amid Iran’s concerns and Armenia’s push to start ground work this autumn. Energy & Trade: Azerbaijan and Turkmenistan signed new cooperation documents and discussed twice-weekly Baku–Ashgabat flights, while Azerbaijan’s exports to Kazakhstan rose 12.7% in Jan–May. Digital Skills: Azercell and AWS ran AI developer training workshops to expand practical AI capability across teams. Social Protection: Azerbaijan’s DOST model is set for a Moldova pilot rollout to modernize social security delivery. Sports & Culture: Azerbaijan’s rowers head to a Poti regatta; Opera Days concluded with Verdi’s “Otello.”

Diplomatic Service Day: Azerbaijan marks 9 July as the Day of Employees of the Diplomatic Service, spotlighting how diplomacy shapes the country’s voice abroad. Media Freedom: Meydan TV and AbzasMedia received the 2026 “Free Media Pioneer” award from IPI/IMS, despite the ongoing “Meydan TV case” and arrests tied to the outlet. Legal Case in Ganja: The Ganja Serious Crimes Court began hearings in lawyer Zabil Gahramanov’s case; his defense says the prosecution is linked to his professional work and lacks evidence. Regional Return to Karabakh: Social media users are discussing the prospects for displaced families returning to Jabrayil’s Shukurbeyli/Shyukurbeyli, as housing and land issues come to the fore. Energy & Transit: Azerbaijan’s transit boom is moving into an industrial phase, with logistics capacity and Middle Corridor demand highlighted. Azerbaijan–Turkmenistan Ties: Turkmen President Serdar Berdimuhamedov met Azerbaijan’s Economy Minister Mikayil Jabbarov during the 9th intergovernmental commission meeting, focusing on trade, energy, and transport corridors. Sports & International Attention: The Kremlin welcomed the IOC’s easing of restrictions on Russian athletes, while FIFA/UEFA weigh what that could mean for Russian teams.

Diplomatic Ties: President Ilham Aliyev met Jordan’s Deputy Prime Minister and Foreign Affairs Minister Ayman Al Safadi, with both sides exchanging invitations and discussing wider cooperation across politics, energy, connectivity, investment, tourism and parliament-to-parliament links. Visa-Free Travel: Azerbaijan and Jordan signed visa exemption/visa-free travel agreements, signaling easier people-to-people contact. Energy & Trade: Azerbaijan’s natural gas exports to the EU rose 3% year-on-year in the first half of 2026, according to the IEA, reinforcing Baku’s role in European supply. Regional Connectivity: Azerbaijan hosted a ministerial meeting advancing the Caspian-Black Sea-Europe Green Energy Corridor, moving the project from feasibility to the next development stage. Legal & Rights: Baku’s Yasamal District Court began hearings in the defamation/“presumption of innocence” case involving Talysh culture researcher Iqbal Abilov, including a translator issue. Culture: ADA University opened an exhibition on Azerbaijan-Egypt cultural ties, highlighting cultural diplomacy through young artists’ works. Sports & International Affairs: FIFA said it will consider whether to return Russian teams after the IOC eased restrictions, while UEFA could block the move.

Azerbaijan-Russia Tensions: Baku summoned Russia’s ambassador over repeated strikes on SOCAR facilities in Ukraine, handing over a formal note of protest after a July 5 attack on a SOCAR gas station in Mykolaiv region, with Azerbaijan calling it deliberate and demanding explanations. Diplomacy in Focus: Foreign Minister Jeyhun Bayramov met U.S. Senator Steve Daines to discuss the Azerbaijan-U.S. strategic partnership, energy security, and Middle Corridor connectivity, and also received Zimbabwe’s parliament speaker Jacob Mudenda to expand inter-parliamentary ties and cooperation in education, tourism, mining, agriculture, and ASAN-style public services. Migration Digitalization: Azerbaijan plans to digitize procedures for extending foreigners’ temporary stay, moving decisions to electronic issuance via the Electronic Government Information System and adding clearer grounds for refusal if required documents aren’t submitted. Energy Outlook: The U.S. EIA kept its 2026 forecast for Azerbaijan’s daily liquid hydrocarbons production at about 550,000 barrels, with 2027 steady at 520,000. Regional Connectivity: Turkey’s parliament speaker Numan Kurtulmus backed a unified South Caucasus center involving Turkey, Armenia, and Azerbaijan, while EU officials said Brussels has already invested €2.5 billion in Armenian infrastructure and is expanding support for border checkpoints and transport routes. Sports & Culture: Azerbaijan’s Ramazan Ahmadov won silver for Azerbaijan at the Prague Junior European Cup; RSF welcomed a French court ruling sentencing defendants in a case tied to Azerbaijani blogger Mahammad Mirzali.

Courtroom Update: Lawyers for Toplum TV defendants in Baku’s Serious Crimes Court asked for acquittal, saying the prosecution’s claims don’t match case materials and current law, with the case tied to activists and journalists facing up to 12 years. Diplomatic Tensions: Azerbaijan summoned Russia’s ambassador over a drone strike that damaged a SOCAR fuel station in Ukraine, urging a full investigation and respect for Vienna Convention protections for diplomatic sites. Digital Governance: Parliament reviewed amendments to digitalize temporary stay extensions for foreign nationals, with electronic decisions delivered via the Electronic Government system and stricter document requirements. National Planning: President Ilham Aliyev approved a 2029 population census, set for Oct 1–31, with the State Statistical Committee leading preparations. Regional/Global Outreach: Azerbaijan’s top Muslim cleric Allahshukur Pashazade called for peace at the International Islamic Forum in Tashkent and announced a major Turkic religious leaders meeting in Baku this September. Economy & Trade: Azerbaijan’s National Centre for Financial Information signed an MoU with Malaysia’s FIU to boost cooperation against money laundering and terrorism financing. Sports: Azerbaijan named a 16-player preliminary women’s volleyball squad for the European Championship, co-hosted by Azerbaijan, Türkiye, Czechia and Sweden.

Energy & Climate Dialogue: Azerbaijan’s COP29 president Mukhtar Babayev says the world should use the “right time” to tackle the energy crisis, pointing to Strait of Hormuz risks and the growing role of nuclear power, while bp regional president Giovanni Cristofoli stresses that big projects like the Baku–Tbilisi–Ceyhan pipeline and the Southern Gas Corridor only move forward through sustained dialogue among states, institutions, and communities. Manat Confidence: Azerbaijan’s central bank dollar-buying and reserve growth helped keep the USD/AZN rate stable, reinforcing confidence in the manat peg. Azerbaijan-Russia Tensions: Baku summoned Russia’s ambassador over drone strikes on SOCAR fuel and gas infrastructure in Ukraine, calling the repeated attacks deliberate and demanding investigations and compliance with international obligations. Regional Connectivity Watch: Georgia confirms China has pulled out of the Anaklia Deep Sea Port, shifting to a state-led “landlord model” where the port stays government-owned while operators run terminals. Sports (Azerbaijan in focus): Greece topped its group after beating Azerbaijan 79-63 in the FIBA U20 Women’s EuroBasket Division B. Azerbaijan Military Readiness: Azerbaijan Air Force training flights used JF-17C (Block III), Su-25 variants, and L-39 to improve coordination and combat skills.

Diplomacy & Security: Azerbaijan summoned Russia’s ambassador to protest alleged drone strikes on SOCAR fuel and gas facilities in Ukraine’s Mykolaiv region, warning the attacks are deliberate after prior damage to SOCAR assets in Odesa. Military Readiness: Azerbaijan Air Force aviation units carried out training flights using JF-17C (Block III), Su-25 variants and L-39, focusing on safe mission execution and tactical drills. Regional Cooperation: The Anadolu Eagle-2026 international tactical flight exercise concluded in Türkiye, with Azerbaijani Su-25 crews and personnel returning home after joint training with Türkiye and Egypt. Trade & Transit: Another 1,026 tons of Russian propane was shipped to Armenia via Azerbaijan, alongside continued fuel and grain transit flows. Business Links: Azerbaijan’s entrepreneurs’ confederation signed an MoU with Pakistan’s Okara Chamber to boost SME ties and joint forums. Sports & Community: New “Healthy Neighborhood” sports zones opened in Naftalan, Samukh and Mingachevir, adding courts and training facilities for local youth. Aviation & Travel: Azerbaijan Airlines highlighted 2026 priorities for improving the digital customer experience.

IDP Resettlement in Jabrayil: Azerbaijan continues its “Great Return” program, relocating 46 families (223 people) from temporary housing to Shukurbeyli village in the Jabrayil district, with residents thanking the state and armed forces for support. Road Safety Tragedy: Three family members were killed in a crash in Sharur district near Pusyan village; father Navai Hasanov, mother Tamara Hasanova and their son Alparslan died at the scene, while another child and the driver were seriously injured. Ukraine War Impact on Azerbaijan Assets: SOCAR Energy Ukraine says a fuel station in Mykolaiv region was damaged in a Russian Shahed drone attack; no employees were hurt due to shelter procedures. Sports—Judo: Azerbaijan’s junior team wrapped up the Prague Junior European Cup with 9 medals (2 gold, 4 silver, 3 bronze), finishing third overall among 33 countries. Sports—Basketball: Ireland beat Azerbaijan 76-70 in Baku in FIBA EuroBasket pre-qualifying action, despite Azerbaijan’s late-game fightback. Digital Governance: Azerbaijan’s digital development authorities held a seminar on responsible AI use in public administration, as part of the 2026–2028 digital action plan. Diplomacy: Zimbabwe’s National Assembly Speaker Jacob Mudenda arrived in Azerbaijan for official talks on bilateral parliamentary cooperation.

Sports & Travel: Ireland beat Azerbaijan 76-70 in Baku to close their FIBA EuroBasket 2029 pre-qualifying run, with Sean Flood scoring 25 after a 15-point first-half deficit. Aviation: AZAL warned that Baku–Nakhchivan–Baku flights on July 5 may be delayed or rescheduled due to unstable weather in Nakhchivan. Digital Policy: Azerbaijan’s Digital Development Council featured at the OSCE PA session in The Hague, where Gaya Mammadov urged stronger protection of states’ digital sovereignty amid AI growth. AI in Government: A practical seminar in Azerbaijan focused on responsible AI adoption in public administration under the 2026–2028 digital action plan. Education: 104 Azerbaijani students won Hungary scholarships for 2026/2027 under Stipendium Hungaricum, spanning fields from computer science to international relations. Economy & Food Exports: Apple exports rose in value in Jan–May 2026 despite lower volume, while pomegranate exports fell in both volume and revenue. Earthquake Alert: A magnitude 3.1 quake hit Khachmaz district at 05:58 local time. International Health Ties: Israeli Soroka Medical Center expanded cooperation with Azerbaijani hospitals, including pediatric and neurosurgery training and research.

Livestock Modernization: Azerbaijan is moving away from traditional, visual-only livestock markets toward digital commodity exchanges, with AQTA stressing gains in transparency, bio-security, and safer supply chains. Regional Connectivity: EU Enlargement Commissioner Marta Kos says transport links between Azerbaijan, Armenia, and Türkiye can support lasting South Caucasus peace and diversify trade and energy routes, following recent visits to all three capitals. EU Support for Links: Ursula von der Leyen’s team points to up to EUR 200 million for transport and energy connectivity in the region, as Baku and Brussels deepen cooperation. Legal & Rights Update: The trial of Meydan TV resumes in Baku after a judge panel change, while election-monitoring activist Mamed Mamedzade reports restrictions and detention conditions in the “NGO case.” Public Safety: Aghdam’s Khatin Reservoir tragedy left a father and two children dead; a separate Ismayilli crash killed two and injured one. Sports: Neftchi Socar won the FIBA 3x3 Women’s Series final in Marseille, beating Canada 15-9.