Azerbaijan and Ukraine expand cooperation in energy and trade

First commission session on Ukrainian territory since the start of the war

Azerbaijan and Ukraine, following the 14th meeting of the joint intergovernmental commission, held in the western Ukrainian city of Uzhhorod, signed a protocol and adopted a comprehensive action plan for 2026–2027. This is the commission's first session on Ukrainian territory since the start of Russia's full-scale invasion. The agreements cover 14 sectors, with an emphasis on the resilience of energy infrastructure and cross-border trade ties. The commission was co-chaired by Azerbaijan's Energy Minister Parviz Shahbazov and Ukraine's First Deputy Prime Minister and Energy Minister Denys Shmyhal. In a post on X, Shahbazov said the sides discussed prospects for strengthening cooperation in trade and economic, investment, energy, transport, technology and innovation spheres.

Protecting the power grid and emergency assistance

A key topic of the meeting was the physical protection of Ukraine's power system ahead of winter. Shmyhal and Shahbazov inspected an energy facility in western Ukraine, where they examined 'second-level protection' systems created to defend critical infrastructure against Russian strikes. During the visit, the delivery of a new Azerbaijani emergency equipment package worth $1.47 million (€1.32 million) was confirmed: nine industrial transformers, 186 km of high-voltage cables, generators and 12 kV distribution equipment. 'We express gratitude to Azerbaijan for its constant and substantial assistance in recovery after Russian strikes,' Shmyhal said on X. According to figures cited at the session, Baku's total humanitarian, rehabilitation and recovery assistance to Ukraine since the start of the war has reached $52 million (€47 million). The sides also discussed joint use of the Trans-Balkan route, underground gas storage facilities and Ukraine's oil pipelines, as well as the development of the Caspian – Black Sea – Europe 'green' corridor.

Trade grows despite logistical constraints

Despite logistical difficulties, trade turnover between the two countries grew by 10.5% in the first eight months of 2026, driven by a 17% increase in Azerbaijani exports to Ukraine. Mutual investments reached $513.5 million (€460 million). Shmyhal said Kyiv was interested in joint production, localization in Ukraine and technology partnerships, inviting Azerbaijani companies to invest in distributed energy and logistics. The Azerbaijani side, in turn, presented the Alat Free Economic Zone as a duty-free logistics hub for joint ventures. The visit concluded with a tour of the Khust Industrial Park, where the delegations assessed a wind turbine manufacturing plant and the Azerbaijani-owned ATEF enterprise for potential joint production.