The bilateral relations between Ukraine and the Republic of Azerbaijan are determined as the Strategic Partnership. Azerbaijan is the main economic partner of Ukraine in the South Caucasus region, the importance of which is enhanced by the urgent needs for the supply of energy carriers to Europe and the development of West-East transport corridors.
There are no trade restrictions on Ukrainian products and systemic problematic issues of Ukrainian companies in Azerbaijan. In September 2022, the legal framework for the Agreement on the Establishment of a Free Trade Area between the GUAM Member States (signed on July 20, 2002) was completed (the Protocol on the Rules for Determining the Country of Origin of Goods to the Agreement on the Establishment of a Free Trade Area between the GUUAM Member States was signed and ratified by the Law of Ukraine No. 3598-IX of February 23, 2024).
The priority areas of cooperation are as follows: energy, transport, agro-industrial and IT spheres, involvement of investments and participation of Azerbaijani companies in the post-war reconstruction of Ukraine, expanding cooperation in the fields of education, science and culture, developing regional cooperation in the Black Sea -Caspian space, including in the GUAM format, as well as in cooperation with the countries of the Organization of Turkic States for further liberalization of trade and facilitation of logistics conditions. Due to the development of bilateral economic cooperation in the previous period, one of the strategic tasks – diversification of oil import – was solved that allowed getting rid of the dominance of Russian oil supplies and its further gradual replacement by Azerbaijani hydrocarbons. Since the beginning of full-scale Russian aggression in February 2022, the supply of Azerbaijani fuel has become an important component of meeting the urgent needs of the Ukrainian economy.
To optimize the logistics routes is a fundamentally important task to complete, which will significantly facilitate bilateral trade as well as the volumes of transit. In this, the measures are being taken to restore the ferry route between Ukraine and Georgia as part of the sea and rail connection of Ukraine with the states of the South Caucasus and Central Asia within the framework of the development of the GUAM Transport Corridor and the Middle Corridor (Trans-Caspian International Transport Route - TMTM).
In the period of 2020-2021, the development of economic cooperation with Azerbaijan was marked by key agreements reached as a result of the official visit of President of Ukraine Volodymyr Zelenskyy to the Republic of Azerbaijan (December 16-17, 2020). It was focused on implementation of investment projects in Ukraine in the spheres of energy and transport infrastructure, as well as on development of cooperation in the fields of chemical industry, agro-industrial complex, food security and tourism.
The agreements reached between President of Ukraine Volodymyr Zelenskyy and President of the Republic of Azerbaijan Ilham Aliyev during the visit paid by the Azerbaijani leader to Ukraine on 14.01.2022 marked a new stage in the development of the Strategic Partnership.
The Joint Intergovernmental Ukrainian-Azerbaijani Commission on Economic Cooperation (JIC) plays a key role in the trade and economic issues, coordinating interaction of the central executive authorities of both countries and forming economic agenda at a high and the highest-level negotiations. The 13th meeting of the JIC was held in Baku on July 12, 2025.
The activities of the JIC structural bodies play a significant role in specifying areas of cooperation in the relevant areas: a joint meeting of JMC experts took place on April 7, 2021; a joint meeting of the Working Group (WG) on cooperation in Agriculture (April 9, 2021); an audit of current implementation of the decisions of the 12th JIC meeting with the participation of the JIC co-chairs (April 14, 2021); a joint meeting of the WG on Privatization (May 17, 2021); the 5th joint meeting of the WG on Energy (on June 17, 2021).
In 2021, bilateral trade volumes exceeded $1,082 billion (↑62%): including export to Azerbaijan $395 million (↑13%), import from Azerbaijan $687 million (↑115%), balance $-292 million.
In the beginning of 2022, a qualitative growth and expansion of nomenclature of Ukrainian exports continued. At the same time, the rupture of logistics sea and railway chains due to full-scale Russian aggression negatively affected the volume of bilateral trade. However, since mid-2022 a gradual recovery of Ukrainian exports to Azerbaijan began. This trend is reflected in the growth of exports, primarily in commodity groups of food products, first of all, poultry and beef. Besides, Azerbaijan is among the leading importers of Ukrainian butter and cheese. Starting from 2024, the volumes of supplies of ferrous metallurgy products, electrical equipment, and pharmaceutical products are gradually being restored.
At the same time, imports of Azerbaijani fertilizers and petroleum products are of great importance for the economy and agriculture of Ukraine. According to the Azerbaijani data, in January 2025 exports of non-oil products to Ukraine accounted for 8.88% of Azerbaijan's total exports of those goods.
In 2024, bilateral trade between Ukraine and the Republic of Azerbaijan (services are practically absent) amounted to $490.7 million (+4.1), exports to $217 million (+10.5%), imports to $273.7 million (-0.5%), negative balance $56.7 million.
A complementary character of mutual trade and economic interests of Ukraine and Azerbaijan determines an attractive basis for further successful development of cooperation.
Azerbaijani companies confirm their readiness to implement large-scale investment projects for the reconstruction and economic restoration of Ukraine, in particular, in energy, infrastructure, transport, construction, telecommunications, etc.
An important component of bilateral relations is humanitarian aid provided to Ukraine by the Republic of Azerbaijan, which was one of the first countries to send it to Ukraine after the start of full-scale Russian aggression. In total, the assistance provided is worth over $42 million, including funding infrastructure projects, delivering medicines, medical equipment and drugs, and food products. Transformer equipment and electric cables for the needs of the Ukrainian energy system are of a special importance.
Since 2023, the Republic of Azerbaijan participates in the annual Ukraine Reconstruction Conferences (URC). In particular, at the Conference in London in 2023, Azerbaijan announced its intention to fund and implement a project to build a number of social facilities in Irpin city. In 2025, in Rome, the Azerbaijani side confirmed its readiness to continue providing humanitarian assistance to Ukraine, including in the field of demining.