Gasoline, Transit, and Regional Routes: How the Opening of Communications with Azerbaijan Is Changing Armenia's Economy

The first commercial contacts have yielded measurable results, but the gap between reciprocal deliveries shows how much Armenia is interested in opening the Azerbaijani market and restoring regional communications.

As the newspaper "Caspian" writes, for over three decades, full-fledged economic and trade relations between Azerbaijan and Armenia remained impossible. The reason was not a shortage of goods or buyers, but the Armenian occupation of Azerbaijani territories, armed confrontation, and closed borders, as a result of which the region lost its natural economic ties.

Moreover, Armenia, having itself chosen the path of isolation from its neighbors, faced limited transportation capabilities. With the advancement of the peace agenda, the previous situation is beginning to change, and the very first trade deals already allow an assessment of the practical substance of these changes.

Export with an edge

According to the latest data from the State Customs Committee of Azerbaijan, in January-September, trade turnover between the two countries reached $23.55 million. At the same time, Azerbaijani exports amounted to $23.45 million, while imports from Armenia were limited to approximately $96,500. Thus, domestic deliveries exceeded the reciprocal flow by approximately 243 times, clearly demonstrating the unevenness of the initial trade interaction.

The emergence of direct economic contacts became possible after Baku lifted restrictions on cargo transit to Armenia at the end of 2025. In the autumn of this year, the parties confirmed the first bilateral trade deals, thanks to which the previously discussed economic interaction acquired quite specific commercial substance.

Broad opportunities

The basis of Azerbaijani deliveries to Armenia consists of petroleum products, including diesel fuel and gasoline. According to the latest published data, approximately 16,000 tons of diesel fuel and about 5,000 tons of AI-92 and AI-95 grade gasoline were shipped from Azerbaijan. Alongside domestic products, Russian and Kazakh cargo, primarily grain and other agricultural goods, was transported through Azerbaijani territory.

However, the economic substance of these operations is not equivalent. Transit of foreign goods generates revenue for transport companies, expands demand for logistics services, and helps strengthen Azerbaijan's position in the regional freight transportation system. At the same time, the value of products passing through our territory to Armenia does not qualify as bilateral exports and cannot be counted in the volume of domestic deliveries.

Broader opportunities open up directly for Azerbaijani producers interested in developing a new market. The sale of their own products not only provides enterprises with additional revenue but also creates prerequisites for expanding