Economic interaction between Azerbaijan and Armenia contributes to the reduction of geopolitical risks in the South Caucasus region. This is stated in a report by the international rating agency Moody's.
Improvement of regional dynamics
The agency notes that the geopolitical situation in the region has become more favorable. The development of economic ties and progress in the creation of transport corridors contribute to the strengthening of regional stability.
Growing economic interaction between Azerbaijan and Armenia, progress on regional transport corridors, and continued international support for the peace process are gradually improving regional connectivity and reducing geopolitical risks, despite the absence of a formally ratified peace treaty.
Trade and transit
According to the State Customs Committee of Azerbaijan, in January–June 2026, Azerbaijani exports to Armenia amounted to 17.1 million dollars. In addition, more than 36 thousand tons of grain, about 8 thousand tons of fertilizers, and other goods were transported through the territory of Azerbaijan from Russia to Armenia.
Fiscal sustainability of Azerbaijan
The Moody's report also discusses the fiscal sustainability of Azerbaijan, which is supported by the growth of non-oil revenues. Assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) continue to grow and are projected to reach 97% of GDP in 2025. The agency expects that higher oil prices in 2026 will provide additional revenue and strengthen the government's ability to respond to economic shocks.
Source: news.day.az