AGP Executive Report

EU South Caucasus Push: European Commission President Ursula von der Leyen pledged up to €200mn for transport, energy and digital connectivity in the region, plus a €20mn “peace dividends” program near the Armenia-Azerbaijan border, while Brussels also announced tariff-free access for about 80% of Armenian exports to the EU. Rail and Corridor Talks: Azerbaijan Railways (ADY) held meetings with Russian and Iranian railway officials on expanding the International North–South Transport Corridor, including digitalisation and Astara Terminal transshipment plans. Energy and Trade Links: Gas exports to Türkiye via the Baku–Tbilisi–Erzurum pipeline reached about 86bn cubic meters, and another Russian wheat shipment to Armenia moved through Azerbaijan territory (976 tons reported). Court and Rights: Baku Appeals Court reviewed defence challenges in a high-profile war crimes case involving Armenian nationals convicted by a Baku Military Court. Diplomacy in Baku: Hikmat Hajiyev met economist Jeffrey Sachs, discussing sustainable development, geopolitics and Azerbaijan’s peace agenda. Aviation Connectivity: AZAL announced new direct flights to Atyrau (from Aug 16) and Aktobe (from Sept 16). Regional Humanitarian/Justice: Armenia began restoring railway sections toward Turkey and Azerbaijan borders on its own, while EU energy support claims drew skepticism from an Armenian energy expert.

EU Connectivity Boost: European Commission President Ursula von der Leyen announced up to EUR 200 million in grants for Azerbaijan to expand transport, energy, and digital links across the South Caucasus, framing it as support for turning peace “on paper into peace in practice” after Azerbaijan-Armenia normalization. Energy Corridor Update: SOCAR officially took over operatorship of the BTC pipeline from bp, marking a major step in Azerbaijan’s control of a key export route. Digital Push: Azerbaijan is moving ahead with its 2026–2028 digital development roadmap, aligning governance, security, and AI priorities under a single execution model. Regional Security: Iran’s IRGC reported killing Kurdish fighters in the northwest, while clashes and tensions around Kurdish groups continue to ripple across the region. Human Rights & Civil Society: Trade union activist Elvin Mustafaev says he’s on hunger strike after being moved to a punishment cell, with relatives alleging the move aims to extend his sentence. Business & Finance: Amana Bank was featured at IsDB Group’s annual meetings in Baku, highlighting Azerbaijan’s role in regional private-sector dialogue.

EU-Azerbaijan ties: European Commission President Ursula von der Leyen wrapped up a working visit to Azerbaijan, praising Baku as a “reliable partner” and signaling deeper cooperation, including a proposed EU-Azerbaijan connectivity partnership. Missing persons: Azerbaijan launched an Online Inquiry Center to let families and citizens submit and manage missing-person information electronically, built with ICMP-linked data systems. Humanitarian diplomacy: Baku hosted an international conference on missing persons, with officials citing 4,010 people registered as missing and hundreds of remains identified. Infrastructure in liberated areas: Construction of the Asgaran–Khojaly–Khankendi highway hit 86% completion, with earthworks done and pavement works underway. Energy and regional corridors: Finance Minister Sahil Babayev said the Middle Corridor’s strategic role is growing as it runs through Azerbaijan; Türkiye and Azerbaijan also discussed electricity transmission opportunities. Military cooperation: Azerbaijan presented a report on its peacekeeping operations, while senior defense officials continued joint work with Türkiye on military education and air force cooperation. Business and travel: Wizz Air added Baku routes from Bratislava, and AccessBank launched up to 50% discounts for new business customers.

EU-Azerbaijan Partnership: Ursula von der Leyen met President Ilham Aliyev in Baku to push a “Peace through Connectivity Package,” offering up to €200m in grants (plus up to €2bn in wider investment) for transport, energy and digital links across the South Caucasus, alongside a €20m peace-fostering program for border communities. Energy & Trade: Aliyev said half of Azerbaijan’s gas exports go to EU member states, while von der Leyen called Baku a reliable energy partner and highlighted ambitions for offshore wind and a green energy corridor. Regional Security & Peace Process: The talks also stressed EU support for Azerbaijan-Armenia normalization and connectivity as a way to turn peace “on paper into practice.” Economy & Finance: Azerbaijan’s central bank reported FX reserves above $13.1bn at end-June. Energy Markets: Azeri Light crude fell below $73 to about $72.46/bbl amid global price decline. Humanitarian & Land Recovery: ANAMA reported new mine and UXO findings and land cleared in liberated territories.

EU-Azerbaijan Deal: Ursula von der Leyen arrived in Baku and, with President Ilham Aliyev, unveiled a “Peace through Connectivity” package: €200m for South Caucasus connectivity (with potential to mobilize up to €2bn more) plus €20m for peace-focused community programs in Azerbaijan and Armenia, including healthcare, mine clearance, training and business support. Trade & Energy: Aliyev said Azerbaijan is the EU’s main trading partner in the Southern Caucasus, with over 40% of trade tied to EU member states, and noted half of Azerbaijan’s gas exports go to EU countries. Missing Persons: A Baku conference on missing persons heard Azerbaijan has returned over 2,000 Armenian soldiers’ remains and urged a joint DNA database, while officials said Armenia has not responded to Azerbaijan’s proposal. Healthcare Cooperation: Soroka University Medical Center and Clalit expanded partnerships with Azerbaijani hospitals, boosting research, pediatrics and medical training. Aviation Links: AZAL announced direct Brussels flights (from May 2027) and new routes to Atyrau and Aktobe (from Aug/Sept 2026). Regional Finance: Azerbaijan chaired the BSTDB Board of Governors meeting in Baku, with a forum pitching Azerbaijan as a regional hub for development financing. Travel Ease: Japan and South Korea citizens can enter Azerbaijan visa-free for tourism from July 1, 2026 to July 1, 2027.

Missing Persons Drive: Azerbaijan and Armenia citizens can now confidentially report missing persons and burial sites, with the State Security Service saying 4,010 people are registered missing from Armenia’s military aggression to date and 327 have been genetically identified. Forensic Updates: Officials also said DNA fragmentation and environmental damage complicate identifications, but enhanced protocols are helping speed up handovers to families. Diplomacy & Regional Religion: In Shusha, the Organization of Turkic States launched a new cooperation mechanism for religious affairs, while OTS leaders marked the 100th anniversary of the First Turkological Congress as a historic milestone for Turkic unity. Budget & Agriculture: Azerbaijan’s Milli Majlis approved 2025 state budget execution with a 580 million manat surplus, and lawmakers backed nearly 2 billion manats for an agriculture state program through 2030. Transport Safety: A fuel tanker truck collided with a locomotive near Sumgayit, injuring the truck driver and derailing the locomotive; an investigation is underway. Sports Spotlight (Baku): UFC Fight Night 280 in Baku delivered fast finishes, including Rafael Fiziev’s quick KO over Manuel Torres and Shara Magomedov’s decision win over Michel Pereira.

Missing Persons & Forensics: Azerbaijan says 32 more mass graves have been found in Karabakh, with remains of 893 people discovered so far; 327 are identified via DNA/forensics and 226 returned to families, while 3,683 still remain missing. ICMP Cooperation: ICMP’s director-general says Armenia and Azerbaijan will build a joint missing-persons database based on the former Yugoslavia model, to speed information exchange and support families. Armenian Genocide Row: Azerbaijan’s Foreign Ministry urged Israel to reconsider its recognition of the 1915 events as genocide, calling it a distortion of historical facts and warning it deepens divisions. Energy & Trade: TANAP hit a major milestone with 99.6 bcm of Azerbaijani gas transported; ferrous metal exports rose 27% in Jan–May. Agriculture: Average grain yields reached 35 quintals per hectare as harvesting progresses. Public Health: Azerbaijan plans to start producing its first domestically developed rabies vaccine by year-end. Sports & Culture: Olympic Day was marked in Baku with mass events, while Turkic World Week continues with congress sessions in the city.

Armenian Genocide Recognition Fallout: Azerbaijan’s Foreign Ministry condemned Israel’s unanimous decision to recognize the 1915 Armenian genocide, calling it an unacceptable distortion of historical truth and urging Israel to reconsider, while Armenian Prime Minister Nikol Pashinyan said Yerevan sees no need to respond publicly. Turkic World Spotlight: President Ilham Aliyev said his initiative to mark the 100th anniversary of the First Turkological Congress is being realized as Turkic World Week opens in Baku, stressing the event’s symbolic link to Azerbaijan’s chairmanship of the Organization of Turkic States. Private Sector Finance in Baku: The Islamic Corporation for the Development of the Private Sector (ICD) signed 13 agreements at the IsDB Group annual meetings in Baku, including a framework to deploy up to AZN 200 million for Shariah-compliant SME financing. UNESCO Culture Bid: Turkey and Azerbaijan submitted a joint UNESCO dossier to list baklava and Azerbaijani pakhlava on the Intangible Cultural Heritage list, with the decision due at the committee session in November. UFC Baku Buzz: Rafael Fiziev rebounded with a knockout win over Manuel Torres, while Abdul-Rakhman Yakhyaev scored an eight-second KO in the prelims, keeping Baku’s fight-week momentum high.

Israel-Armenia Genocide Recognition: Israel’s cabinet unanimously approved Foreign Minister Gideon Sa’ar’s proposal to recognize the Armenian Genocide, with Sa’ar calling it a “moral and historical duty” and noting the decision follows decades of diplomatic restraint tied to Turkey. Azerbaijan Response: Azerbaijan’s Foreign Ministry issued strong concern and urged Israel to reconsider, warning the move could harm regional reconciliation and stability. Turkic World Week in Baku: Azerbaijan opened Turkic World Week at the Heydar Aliyev Center, marking the 100th anniversary of the First Turkological Congress, with events planned across Baku, Shusha, Khankendi and Aghdam. Media Policy Watch: A new report says Azerbaijan’s Media and Broadcasting Council is part of a broader tightening of media control, alongside arrests of independent journalists and a sharp drop in press freedom rankings. Transport & Trade: Silk Way West Airlines signed a digital partnership with CargoAi to expand freight booking and visibility; meanwhile, APM Terminals Poti is investing in a new mobile harbour crane to boost capacity. Energy/Transit Politics: Russian officials said Armenia must account for Moscow’s position on the TRIPP corridor and suggested rail should match Russian gauge for connectivity with Azerbaijan.

UFC in Baku: Rafael Fiziev powered past Manuel Torres with a second-round TKO, while Asu Almabayev pulled off a rare Suloev stretch submission and Abdul-Rakhman Yakhyaev scored an 8-second knockout to earn a $100,000 bonus; the card also sparked fresh debate over officiating after Shara Magomedov’s repeated fouls drew criticism and calls to ban referee Herb Dean. Youth & regional policy: CICA’s Youth Council held its 9th meeting in Baku with Kyrgyzstan participation, focusing on how youth can move from traditional engagement to real partnerships for sustainable urban development. Safety in the mountains: A climber fell near Mount Bazarduzu in Guba district and was evacuated after receiving first aid from special rescue teams. Energy & transport ties: Azerbaijan presented Turkmenistan with the “Dostlug” oil tanker during President Serdar Berdimuhamedov’s visit, and reports also highlighted continued wheat transit from Russia to Armenia via Azerbaijan. Culture & heritage: Turkey and Azerbaijan jointly filed a UNESCO bid to list baklava as intangible heritage, aiming to secure recognition for the dessert under shared names.

UFC Baku Fallout: Rafael Fiziev rebounded with a second-round KO over Manuel Torres, while Abdul-Rakhman Yakhyaev stunned Julius Walker in 8 seconds; the night also sparked fresh outrage over referee Herb Dean after fouls in the Shara Magomedov–Michel Pereira bout left fans calling for point deductions. Mountain Tourism: Shahdag Tourism Center officially opened its 2026 summer season, pushing year-round eco and active travel with new sports and visitor experiences. Environment & Nature: Researchers mapped vegetation and ecological shifts across the Shirvan Plain, flagging faster transformation in parts of the region and tracking rare and invasive plant species. Education in Karabakh: Under the Great Return State Program, more preschool and school capacity is operating in liberated areas, alongside expansion of Karabakh University and new faculties. Regional Connectivity: Azerbaijan and Kazakhstan are moving fully to electronic freight permits, ending paper-based procedures to speed and simplify cross-border logistics. Trade Through Baku: Another wheat shipment—770 tons in an 11-wagon train—transited Azerbaijan en route from Russia to Armenia, continuing the expanding corridor. Diplomacy & Policy: Oman’s Shura Council is set to review a draft Azerbaijan double-taxation deal, aimed at boosting investment and cutting tax evasion. International Spotlight: Azerbaijan’s Aydin Suleymanli said his win over chess legend Magnus Carlsen in Hong Kong is a moment he’ll never forget.

UFC Baku Spotlight: Rafael Fiziev roared back in front of a home crowd, knocking out Manuel Torres 15 seconds into Round 2 with a spinning wheel kick and follow-up punches, then immediately pushed for a shot at the BMF title. Controversy Watch: The event also sparked fresh backlash over referee Herb Dean, with Alex Pereira and fans criticizing inconsistent foul penalties in the Shara Magomedov vs. Michel Pereira bout after hair-pulling warnings and an eye poke were not punished with a point. Local Heroes & Bonuses: UFC Baku handed out four $100,000 “Performance of the Night” awards to Fiziev, Asu Almabayev, Abdul-Rakhman Yakhyaev, and Daniil Donchenko, while multiple fighters earned finish bonuses amid a card packed with knockouts and submissions. Military Cooperation: Egypt and Turkey kicked off the “Anatolian Eagle 2026” air exercise, with multi-role jets including Azerbaijan and NATO early-warning aircraft participating. Regional Connectivity Angle: Analysts framed the Turkic Investment Fund as a new “sovereign shield” for Turkic states navigating great-power competition, with Azerbaijan positioned as a key land-bridge in the Middle Corridor.

Azerbaijan–Türkiye Diplomacy: Foreign Minister Jeyhun Bayramov spoke by phone with Turkish FM Hakan Fidan, stressing the alliance, strategic cooperation, and coordination on regional security and post-conflict stability. UFC Baku Buzz: The UFC returned to Baku with a packed card and fast finishes, including Abdul-Rakhman Yakhyaev’s eight-second demolition of Julius Walker and Nursulton Ruziboev’s first-round choke over Andrey Pulyaev; the event also featured a controversial opener where Tahir Abdullayev’s TKO win over Jefferson Nascimento drew heavy criticism. Military Cooperation: Azerbaijan, Georgia, and Türkiye wrapped up the “Caucasian Eagle 2026” special forces drills in Georgia, with next year’s host country set for Azerbaijan. Defense Policy: Azerbaijan’s conscription age cut from 35 to 30 is said to have reduced state expenses, according to the mobilization and conscription service chief. Trade & Food Exports: Vegetable and animal oils exports hit $15.2m in Jan–May, while tomato exports reached $119.8m in the same period. Weather & Travel: Heavy rain and thunderstorms are easing, but Baku–Nakhchivan flights were cancelled due to conditions at Nakhchivan Airport.

UFC in Baku: Rafael Fiziev takes on Manuel Torres in the main event of UFC Fight Night 280 on June 27 at the National Gymnastics Arena, with Fiziev looking to snap a rough run while Torres arrives on a streak of early finishes; the card also features Nazim Sadykhov vs. Matheus Camilo and Shara “Bullet” Magomedov vs. Michel Pereira, as fans gear up for a full Paramount+ lineup. Armed Forces Day: Azerbaijan marked the 108th anniversary of the Azerbaijan Army with military marches and a joint concert in Baku featuring the Heydar Aliyev Military Institute orchestra and the Turkish Armed Forces Harmony Band. Islamic finance push: Azerbaijan is moving to integrate Islamic finance into its secular framework, with IsDB backing aimed at building a stronger Islamic finance ecosystem and supporting sukuk issuance. EU diplomacy: EU Special Representative Magdalena Grono said her Baku talks focused on EU-Azerbaijan ties, transport and logistics, and keeping momentum in the Azerbaijan-Armenia peace process ahead of upcoming EU high-level visits. Energy and connectivity: Reports highlight Azerbaijan’s role in regional transport and trade corridors, including work on unified tariff models for the Middle Corridor and continued energy shipments tied to regional cooperation.

Armed Forces Day: Azerbaijan’s Defense Ministry leadership laid wreaths at the Alley of Honor and visited Victory Park and the Military Memorial Cemetery to mark June 26 and the 108th anniversary of the Azerbaijan Army. EU Diplomacy: European Commission President Ursula von der Leyen is set to visit Azerbaijan on July 1 (with Marta Kos), with talks expected to focus on peace, energy cooperation, and transport connectivity along the Middle Corridor. Energy & Neighbors: Georgia’s PM said Azerbaijan secured gas supply guarantees of over 2 bcm at favorable prices, while separate reporting says Azerbaijan exported 342.7 million cubic meters of gas to Greece in Jan–Apr 2026. Trade Facilitation: Azerbaijan and Türkiye are pushing a simplified customs corridor under the Middle Corridor initiative, aiming for a “Single Window” system and information exchange with other Turkic states. UFC Baku: Rafael Fiziev headlines UFC Fight Night in Baku against Manuel Torres, while Shara Magomedov’s heated weigh-in faceoff with Michel Pereira drew security intervention. Regional Security Debate: CIS Secretary-General Sergey Lebedev argued that isolating Afghanistan is a dead end, stressing dialogue and regional transit and security cooperation.

Fisheries Regulation: Azerbaijan’s parliament discussed a draft “On Fisheries” law that would allow only compliant facilities to sell fish products commercially, with strict food-safety packaging, veterinary documents, and origin details to be entered into a designated information system. Armed Forces Day: President Ilham Aliyev signed orders awarding fallen Defense Ministry servicemen posthumously and other servicemen for safeguarding independence and territorial integrity; the Defense Ministry also held hospital visits, graduation ceremonies, and military marches across major cities including Baku, Shusha, and Khankendi. Public Health Borders: The special COVID-19 quarantine regime has been extended until October 1, keeping land border crossings closed for another three months while cargo is still allowed. International Diplomacy: Azerbaijan and Qatar’s parliaments held talks in Baku on deepening cooperation, while Azerbaijan’s MFA discussed EU relations and the Armenia-Azerbaijan normalization process with the EU’s South Caucasus representative. Sports Spotlight (UFC Baku): UFC Fight Night 280 in Baku is set for June 27, with Rafael Fiziev headlining against Manuel Torres and Kaan Ofli facing Javier Reyes. Humanitarian: Azerbaijan expressed solidarity with Venezuela after twin earthquakes killed at least 235 people, with rescue efforts continuing.