From the Caspian to the Danube: The Strategic Alliance Between Azerbaijan and Serbia is Shifting the Balance of Power in the Region

The European direction has always been one of the priorities for Azerbaijani foreign policy. And recent events have demonstrated this with maximum clarity.

The working visit of President Ilham Aliyev to Germany for participation in the Munich Security Conference showed the heightened interest of European politicians in active dialogue with Baku. Meetings of the head of the Azerbaijani state with the head of European diplomacy Kaja Kallas, Ukrainian President Volodymyr Zelensky, and Bulgarian Vice President Iliana Yotova became an indicator that Baku is perceived as an important partner in several directions simultaneously: energy security, transport connectivity, and issues of regional stability in the South Caucasus.

The continuation of these meetings was the official visit of the President of Azerbaijan to Serbia - already after fruitful meetings in the Bavarian capital. Special symbolic significance was given to this visit by the fact that it took place during the celebration of Serbia's Statehood Day. In diplomatic practice, such coincidences are rarely accidental - this indicates a high level of political trust, writes the newspaper "Caspian".

On the very first day, a meeting of the Strategic Partnership Council between the two countries was held. According to Serbian President Aleksandar Vučić, Belgrade applies such a format to a limited number of states. This means that Azerbaijan has been elevated to the category of priority partners. The meeting of the Strategic Partnership Council held on the first day of the visit became an indicator of the transition of bilateral relations from individual projects to systematic coordination in energy, security, transport, investments, and industry.

A Project Shaping the Future

The key practical outcome of the visit was the signing of an agreement on the construction of a gas power plant in the Niš area with a capacity of 350 MW of electrical and 150 MW of thermal energy.

The project is being implemented by a joint venture with the participation of the Serbian state electric power company Elektroprivreda Srbije, gas operator Srbijagas, and the State Oil Company of the Azerbaijan Republic SOCAR. This is a strategic facility that will provide additional base load for the Serbian energy system, increase the reliability of energy supply, and create a foundation for industrial and digital development in the south of the country.

In terms of investment scale, the Niš project can be considered one of the largest Azerbaijani investments in Europe in recent years. It demonstrates a qualitative shift in Azerbaijani trade and economic policy, where the country increasingly acts not only as a gas supplier but also as an investor and participant in power generation within the European space.

Energy remains the central direction of cooperation. SOCAR has concluded a contract with Srbijagas for the supply of Azerbaijani gas to Serbia in volumes of up to several hundred million cubic meters per year. This allows Belgrade to diversify its energy supply sources, and Baku to expand its presence in the Balkan market.

Trade, Investments, Defense

Overall, trade and economic dynamics demonstrate steady growth. In 2025, the volume of mutual trade amounted to about 135 million dollars, with imports of Serbian products to Azerbaijan growing by more than 50%.

Investment cooperation between the two countries extends beyond energy. In particular, Azerbaijani companies, including AzVirt, are participating in road and infrastructure projects on Serbian territory. This involves the construction and modernization of highways and regional sections, which strengthens the presence of Azerbaijani capital in Serbian infrastructure.

Military-technical cooperation deserves special attention. This month, the parties approved a new Plan for Bilateral Military Cooperation for the current year