Russia, Azerbaijan Bilateral Relations: October 2025 Update 

Azerbaijan

The President of Russia, Vladimir Putin, has met with Ilham Aliyev, the President of Azerbaijan in Dushanbe, Tajikistan. This is what they had to say:

Putin: “I would like to begin our meeting with discussing the most sensitive topic, namely, the air tragedy that occurred in our skies. During our first telephone conversation, I not only apologised for the fact that the tragedy took place in Russia’s airspace and expressed my deepest condolences to the families of the passengers who died in that crash. I would like to say those words again and reiterate that, as agreed, we are cooperating with the investigative authorities.

The investigation is nearing completion and at this point, we can discuss the causes of this tragedy, this catastrophe. It was caused by several factors.

The first is that a Ukrainian drone was mid-air at the time of the tragedy. We were tracking three drones crossing the Russian Federation’s border during the night of the tragedy.

The second factor involves technical malfunctions in Russia’s air defence system. Two missiles that were launched did not hit the aircraft directly. Had that happened, the plane would have crashed immediately. They exploded a few metres away from it. As a result, the damage was caused by missile fragments. That is why the pilot sensed the impact as a collision with a flock of birds which he reported to Russian air traffic controllers. All of that was recorded by “black boxes.” He was also advised – and this is clearly audible on the recordings – to make an emergency landing in Makhachkala, but he decided instead to return to his home base and then to Kazakhstan.

This is what caused the tragedy. All of this is documented following a thorough analysis of the technical data and a second-by-second review of the black box recordings.

You and I have discussed this issue. The Russian side will do everything that must be done in these tragic circumstances, including compensation payments and a legal assessment of the actions of all officials involved.

Our duty – we agreed on this from the very beginning – is to provide an objective assessment of the events and identify the true causes. However, that needs time. We will need more time before we can put this matter to bed. Overall, I outlined the information I received. I have shared with you practically everything I know myself.

Secondly, I would like to note that, despite this, our mutual interests in many spheres coincide and are closely aligned. First and foremost, this naturally concerns trade and economic ties. Despite the nuances related to this tragedy, which I have just mentioned, and certain matters arising in connection with it, trade and economic relations have continued to develop successfully. Last year, we saw an increase of approximately 6%, and this year trade turnover has already grown by more than 16%. This is a very good indicator.

Thanks to your attention to this matter, our ties have remained at a high level. And we are grateful to you for this; and we will do everything to ensure this positive dynamic continues.

Our foreign ministries have always worked very closely together on the situation in the region and the broader situation on international platforms. I hope this cooperation will not merely be restored but will continue in the spirit of our relations, in the spirit of our alliance. We never forget this; we remember the treaty that was signed not long ago, and for our part, we will do everything to implement all its key provisions.”

Aliyev: “I would like to express my gratitude for this meeting. As you noted, we had a brief conversation in Beijing, and just two days ago, I called you on your birthday.

Thank you for the detailed information regarding the tragedy last December, when an Azerbaijani airliner crashed. We were in immediate contact. As you recall, on that day, I was flying to a meeting in St Petersburg and called you directly from the plane when I was informed of the incident, and we expressed our condolences to each other. I also asked you to convey to our colleagues, who were participating in the event, that due to objective reasons, I would be unable to attend the informal CIS summit.

I would also like to thank you for personally overseeing this situation. We have exchanged views repeatedly, and members of our teams remain in constant contact. You are personally monitoring the progress of the investigation, and we had no doubt that it would examine everything objectively. Therefore, I would like to once again express my gratitude that you deemed it necessary to address this matter during our meeting.

As you noted, not only have trade and economic ties developed successfully this year, but all other areas of our relations have also progressed. As you mentioned, there is positive momentum in trade growth. Similarly, there has been no slowdown or regression in all other domains. On the contrary, the roadmaps we approved are being successfully implemented.

The Russian-Azerbaijani intergovernmental commission also met relatively recently, where the co-chairs discussed a wide range of issues in detail, not limited to trade and economic matters.

Today provides a good opportunity to revisit our agenda, which is extensive and positive. I am confident that the messages we are sending today to our societies will also be received positively.

Summary

The Azerbaijan airlines crash incident appears to have been clarified and put to rest, although at the time it did briefly disturb bilateral relations. There appear to have been three compounding factors; the presence of Ukrainian operated military drones creating security problems around the Russian airport, a technical malfunction of a Russian air defence missile, coupled with pilot error in not immediately landing the aircraft. This will undoubtedly lead to new protocols being established for instructions to aircraft in the event of such incidents occurring again. 38 people died.

Moving on from this, bilateral trade and investment relations appear to have carried on regardless, with trade up 16% over the year to date. This includes increases of Russian imports of butter and tomatoes while substantial infrastructure investment has also been carried out between the two countries borders to allow Russia better access to the International North-South Transport Corridor (INSTC) via Azerbaijan to Iran. This includes Russian assistance in digitizing railway traffic  and the building of cross-border railway facilities.  

Azerbaijan actively participates in regional infrastructure initiatives such as the Baku-Tbilisi-Kars railway and the Trans-Caspian International Transport Route (Middle Corridor), both of which facilitate trade between Europe and Asia and involve Russian trade traffic.

Azerbaijan also expanded cooperation with SCO and BRICS+ and has explored closer economic ties with GCC countries, including Saudi Arabia and the UAE, as it seeks to diversify its trade relationships beyond oil, with particular interest in agriculture, logistics, and tourism. Azerbaijan is a member of the Commonwealth of Independent States.  

With a population of approximately 10.34 million, Azerbaijan’s GDP (PPP) is around US$199.2 billion, and its GDP (PPP) per capita is estimated at US$22,033. The country’s projected 2025 GDP growth rate is 1.5%.

The bilateral trade relationship between Azerbaijan and Russia has been growing, with trade turnover reaching US$4.5 billion in 2024. That is projected to increase to US$5.2 billion for 2025. 

Further Reading

Russia’s Pivot To Asia: 2025 Guide To The Caucasus
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