In recent years, the deepening of cooperation between Azerbaijan and Serbia has taken on a systematic and long term character. The recent visit of President Ilham Aliyev to Belgrade demonstrated not only a high level of political dialogue, but also the formation of a stable architecture of bilateral relations based on converging strategic interests and personal trust between the leaders of the two countries.

For Azerbaijan, the Balkans represent an important vector of foreign policy in the context of expanding its presence in Southeast Europe. The region forms part of a broader transit and energy arc connecting the South Caucasus with European markets. In this framework, Serbia stands out as a key partner: the largest economy in the Western Balkans, a state pursuing an active multi vector foreign policy, and an influential actor within regional formats.

Serbia, in turn, views Azerbaijan as a reliable partner in the fields of energy, infrastructure projects, and investment. Amid the transformation of the European energy market, Baku has strengthened its position as an alternative supplier of energy resources to Europe. Expanding the energy dialogue with Belgrade fits squarely into a broader strategy of diversification and the enhancement of energy security across the Balkans.

President Aleksandar Vučić emphasized the dynamic nature of bilateral interaction, stating: “Our cooperation is developing in all areas of life. Compared to 2012, trade turnover in services has increased sixteenfold, not by sixteen percent, but by sixteen times.” This assessment reflects not only quantitative growth, but also the structural expansion of economic cooperation between Serbia and Azerbaijan.

A significant factor in the further deepening of ties is the development of transport connectivity. The launch on 3 May of a direct air route between Belgrade and Baku, to be operated by Air Serbia, creates additional conditions for intensifying business contacts, tourism, and humanitarian exchange. The direct flight reduces transactional and time costs, increases logistical predictability, and encourages small and medium sized enterprises to enter new markets.

Growth in tourist flows between the two countries can become not only an economic asset, but also a political and humanitarian resource, contributing to the formation of durable people to people ties. In the long term, this strengthens the social foundation of the strategic partnership.

In a more informal manner, the President of Serbia also drew attention to interest in cooperation in the agricultural sector. This signal points to a potential expansion of the bilateral agenda beyond energy and infrastructure. Possible areas include the exchange of expertise in agricultural technologies, the development of cooperative projects within the agro industrial sector, and, at an initial stage, the supply of Azerbaijani agricultural products to the Serbian market.

The agricultural dimension could become an additional driver of trade diversification. For Azerbaijan, this would mean access to the Balkan market, while for Serbia it would expand product variety and contribute to food resilience.

Energy remains the core pillar of bilateral interaction, effectively serving as the system forming element of the strategic partnership between Azerbaijan and Serbia. The signing of an agreement on the construction of a gas fired power plant in Serbia indicates a transition of cooperation into a practical investment phase.

The project envisages the construction of a generating facility with a capacity of 350 megawatts of electricity and 150 megawatts of thermal energy. The new plant will provide additional baseload capacity for the power system and ensure reliable energy supply for industry and households, which is particularly relevant in the context of rising domestic consumption, economic digitalization, and expanding industrial capacity.

Implementation of the project will take place through a joint venture involving Serbia’s state owned power utility Elektroprivreda Srbije (EPS), the state gas operator Srbijagas, and Azerbaijan’s state oil and gas company SOCAR. This configuration reflects a high degree of institutionalization of the partnership and a mutual readiness for long term commitments.

Serbian Minister of Energy Dubravka Đedović Handanović described the agreement as opening “a new chapter in bilateral cooperation, with energy playing a central role,” emphasizing that Azerbaijan has become Belgrade’s first partner in the diversification of gas supplies. According to her, cooperation in the gas sector is already producing tangible results through increased volumes of supply, while the further implementation of joint projects will strengthen security of supply and ensure the long term sustainability of Serbia’s energy system.

It is evident that by intensifying cooperation with Azerbaijan, Serbia seeks not only to establish stable and pragmatic long term relations with Baku, but also to expand its own strategic capabilities in the region. This concerns a broader architecture of energy, transport, and digital connectivity, in which Azerbaijan is viewed as an important partner and an additional strategic anchor.

This was indirectly acknowledged by Aleksandar Vučić himself, who referred to parallel negotiations with the United States. He noted the prospects of projects involving the construction of oil and gas pipelines from the port of Bar in Montenegro, as well as the development of infrastructure from Prijepolje through the Zlatibor mountains to Belgrade. Such a configuration implies the creation of alternative supply routes and the strengthening of Serbia’s role as a transit and distribution hub in the Balkans.

A separate emphasis was placed on the development of data centers and the integration of artificial intelligence technologies into the national economy. Vučić stressed that without leveraging the potential of artificial intelligence, the country risks falling behind technologically. In this context, energy and digital agendas are viewed as interconnected: modernization of energy infrastructure must be accompanied by the development of computing capacity, data storage, and digital services.

From a strategic perspective, this indicates Belgrade’s ambition to position itself not only as an energy hub, but also as a regional digital center. Cooperation with Azerbaijan in the energy sector, alongside negotiations with the United States on infrastructure and technology projects, illustrates Serbia’s multi vector approach.

Aleksandar Vučić underscored the scale and ambition of the bilateral agenda, stating that across all spheres, from culture and sports to the economy, agriculture, industry, and military technical cooperation, the two sides are capable of reaching the highest possible level of relations. This formulation reflects Belgrade’s intention to give the partnership a comprehensive and long term character that goes beyond narrow sectoral interaction.

Ilham Aliyev, for his part, noted the high pace of development in the broader region and the presence of multiple unpredictable scenarios. In this context, he emphasized the need for constant contact, analytical information exchange, and coordination of positions in order to achieve strategic objectives. A telling signal was the fact that the Azerbaijani leader was accompanied by a significant portion of the government, indicating the interagency and systemic nature of cooperation.

Institutional consolidation of the new stage in relations was marked by the signing by the two heads of state of the Decision of the first meeting of the Strategic Partnership Council between the Republic of Serbia and the Republic of Azerbaijan. The establishment of this format places interaction within a stable framework of regular high level political dialogue, ensuring coordination across key areas including energy, infrastructure, defense and technical cooperation, the agro industrial sector, and the humanitarian sphere.

Energy cooperation between Azerbaijan and Serbia is underpinned by concrete long term contractual commitments. On 15 November 2023, SOCAR and Serbia’s state company Srbijagas signed a natural gas sales and purchase agreement providing for the supply of up to 400 million cubic meters of Azerbaijani gas annually during the period 2024 to 2026. This volume became an important element in diversifying Serbia’s gas balance and signaled a transition toward a sustainable commercial model of cooperation.

An additional impulse was provided on 26 September 2024, when the parties concluded another agreement on the supply of an additional volume of gas, amounting to one million cubic meters per day from 1 November 2024 to 1 April 2025. This seasonal increase directly enhances Serbia’s energy security during peak autumn and winter demand.

Strategically significant is Azerbaijan’s intention to gradually increase gas exports to Serbia to one billion cubic meters per year. If implemented, these plans would secure Baku’s position as one of the key suppliers on the Serbian market, while providing Belgrade with a more stable and diversified import structure.

Thus, cooperation in the gas sector moves beyond symbolic political agreements and acquires clear quantitative parameters. This forms a solid economic foundation for the further expansion of the bilateral strategic partnership.

All of the outlined areas, from energy to digital infrastructure, acquire particular significance in the context of institutionalizing strategic dialogue between Azerbaijan and Serbia. For Baku, this means the formation of a full fledged strategic partner in the Balkans, which constitutes a substantial geopolitical advantage amid the ongoing transformation of Europe’s security and energy architecture.