Armenian Deputy Prime Minister Mher Grigoryan has confirmed that Armenia and Azerbaijan have held discussions on the possible export of Azerbaijani oil and oil products to Armenia, following talks with Azerbaijani Deputy Prime Minister Shahin Mustafayev in Gabala. While no agreement has been reached, Grigoryan stated that discussions have taken place and that opportunities for cooperation exist, with any potential fuel imports to be determined through market-based transactions between private companies, reports Azatutyun.
Deputy Prime Minister Grigoryan confirmed that he recently discussed the issue of exporting oil and oil products from Azerbaijan to Armenia with his Azerbaijani counterpart during the meeting in Gabala. Responding to a question from Azatutyun on whether Yerevan and Baku have already reached an agreement on importing fuel from Azerbaijan, Grigoryan stated: “Yes, discussions have taken place, there are opportunities for cooperation.”
Azatutyun also asked the Deputy Prime Minister about the volumes of Azerbaijani fuel imports under discussion, which Armenian companies intend to purchase oil from Azerbaijan, the price range at which Azerbaijan is prepared to sell oil and oil products to Armenia, and whether such fuel would be competitive compared to fuel imported from Russia.
“The further process related to fuel is already within the domain of cooperation between private exporters and importers, and the terms of possible transactions will be market-based,” Grigoryan replied.
Information that Yerevan and Baku are discussing the export of oil and oil products from Azerbaijan to Armenia first became known to the Armenian public through statements from the Azerbaijani side. Last week, Azerbaijani presidential aide for foreign policy Hikmet Hajiyev announced that alongside the border delimitation process, the deputy prime ministers of the two countries had also discussed certain sectors of mutual trade.
According to Hajiyev, one of the sectors currently under discussion is the export of oil and oil products from Azerbaijan to Armenia. When asked what other areas of mutual trade Armenia and Azerbaijan are discussing beyond fuel imports, Deputy Prime Minister Mher Grigoryan did not provide specific details, stating only that “discussions on other goods are still ongoing.”
Transit Through Georgia: Tariff Dispute and Reversal
Any shipment of Azerbaijani fuel to Armenia must pass through Georgia, as direct rail links between Baku and Yerevan have been suspended for nearly 30 years.
According to Minval Politika, a portal close to the Azerbaijani government, Georgia initially proposed what was described as an “astronomical tariff” of $92 for 111 km of transit, or $0.82 per kilometer per tonne.
According to Georgia’s Ministry of Economy and Sustainable Development, on December 5 of this year, the Georgian government received a request from “partner countries” for a “one-time transit” of fuel from Azerbaijan to Armenia through Georgian territory. By decision of Prime Minister Irakli Kobakhidze, Georgian Railways was promptly instructed to conduct this one-time transit free of charge. This decision was formally communicated to all relevant parties.
“Georgia has always been and remains a strategic and reliable partner for both Armenia and Azerbaijan. We have consistently supported peace and regional cooperation,” the Georgian economy ministry said.
These developments come a month after Armenia received its first cargo shipment in decades transiting via Azerbaijan, the first shipment of its kind since the First Karabakh War.
On November 5, a train carrying over 1,000 tons of Russian wheat arrived at a station in northern Armenia after traveling through Azerbaijani and Georgian territory.
