By Emil Avdaliani

On October 9, the presidents of Russia and Azerbaijan met in Dushanbe. Relations appear to be improving and despite the persisting distrust, Baku seeks to maintain a functional relationship with Moscow. At the same time, Baku has taken significant steps to strengthen ties with Washington, with U.S. companies pledging investments in Azerbaijan’s oil and gas sector. Close relations with both Russia and the U.S. align with Baku’s commitment to a balanced foreign policy aimed at avoiding dependence on any single major power. Through this approach, Baku seeks to demonstrate that it enjoys increasing flexibility in its international maneuvering.



                                                                   Credit: Wikimedia Commons

BACKGROUND: Over the past two months, Azerbaijan’s relations with both Russia and the U.S. have undergone significant changes, reflecting Baku’s continued commitment to maintaining balance in its foreign policy.

On October 9, Vladimir Putin met with Azerbaijani President Ilham Aliyev in Dushanbe, Tajikistan. During the meeting, Putin addressed what he called the “most sensitive issue,” the December 2024 crash of an Azerbaijan Airlines Embraer 190 jet, caused by a Russian air defense missile. He expressed his condolences and effectively issued an apology. Putin stated that the investigation into the crash had concluded and that the causes of the tragedy had been identified. He attributed the incident to three Ukrainian drones allegedly flying over Russian territory at the time and mentioned technical malfunctions in Russia’s air defense system, which launched two missiles that did not directly strike the plane but exploded about ten meters away.

Between the downing of the Azerbaijani airliner and the meeting in Dushanbe, relations grew even more strained following the arrest of members of the Azerbaijani diaspora in Yekaterinburg in June 2025. Russian security forces detained a group of Azerbaijani nationals in connection with murders committed in the early 2000s, resulting in the deaths of two suspects during the operation. In response, Azerbaijan took retaliatory measures, arresting eight Russian citizens on charges of drug trafficking and cybercrime. The Russian House in Baku was subsequently closed, all Russia-related cultural events were cancelled, and Azerbaijani authorities detained both the director and the editor-in-chief of Sputnik Azerbaijan.

Amid the tensions and eventual reconciliation with Russia, Baku has also improved its relations with the U.S., which had deteriorated during the Biden administration. That period coincided with the fall of the Nagorno-Karabakh enclave and the mass displacement of Armenians, developments that created friction between Washington and Baku. However, with Trump’s return to the presidency, momentum began to build toward reversing this trend. The ongoing peace talks between Armenia and Azerbaijan drew renewed U.S. attention, with Washington showing a clear willingness to act as the main mediator in the process.

This development led to the peace summit in Washington, D.C., on August 8, where Yerevan and Baku reached a landmark agreement granting the U.S. a 99-year mandate to oversee the creation and operation of a transit corridor through Armenian territory. Named the “Trump Route for International Peace and Prosperity” (TRIPP), the corridor will connect Turkey with the Caspian Sea, bypassing the traditional route through Georgia. In addition, Azerbaijan secured U.S. President Donald Trump’s approval of an order lifting Section 907 of the 1992 Freedom Support Act, which had prohibited U.S. military assistance to Azerbaijan since the first Nagorno-Karabakh war. During the summit, Azerbaijan’s SOCAR signed a memorandum of understanding with ExxonMobil, and following the event, Washington and Baku agreed to hold regular meetings on military and economic cooperation.

IMPLICATIONS: For Azerbaijan, Putin’s remarks were seen as an apology, and Baku now appears ready to normalize relations with Moscow. Yet beneath this adjustment lies a deeper motive: Azerbaijan’s foreign policy is shaped by calculations of power balance. Although weakened by the war in Ukraine, Russia remains strong enough to exert pressure on Azerbaijan, and Baku has been cautious not to provoke Moscow’s anger. Positioned geographically between Russia and Iran, Azerbaijan remains vulnerable to possible Russian military or economic pressure, as well as to instability from the Middle East driven by Israeli and U.S. actions against the Islamic Republic.

This explains why, after a relatively extended period of tension with Moscow, Baku ultimately chose reconciliation. Moreover, this approach aligns with Azerbaijan’s broader pattern of behavior toward other powers. Since 2020, when Azerbaijan achieved a decisive victory in the second Nagorno-Karabakh war, its relations with Iran have worsened. Tehran grew concerned about the shifting balance of power in the South Caucasus, marked by Azerbaijan’s rising confidence and Turkey’s expanding influence. Until late 2024, ties between Baku and Tehran went through several cycles of tension, yet both sides were careful to prevent any major military escalation. This period concluded with a clear rapprochement between Azerbaijan and Iran, marked by bilateral visits and the reopening of the Azerbaijani embassy in Tehran.

The reconciliation with Moscow also reflects Baku’s ongoing focus on maintaining balanced relations with its neighbors, particularly major powers. Ties with Russia remain important, as shown by the expansion of the International North–South Transport Corridor (INSTC), which runs from Russia’s interior through Iran to the Indian Ocean. A key branch of this corridor passes through Azerbaijan, making it a vital route for Russia’s access to the Middle East. In addition, strong bilateral trade between Azerbaijan and Russia provides another incentive for both countries to avoid any serious deterioration in their relationship.

However, this reconciliation is neither complete nor entirely sincere. Azerbaijan will continue to follow its multi-vector foreign policy, which increasingly limits its dependence on Russia. The broader geopolitical context favors Baku. Engaged in a prolonged conflict that demands vast economic and military resources, Russia has been unable to maintain the dominant position in the South Caucasus that it held before 2022. The regional states, Armenia, Azerbaijan, and Georgia, quickly moved to take advantage of this new flexibility. Azerbaijan regained territories long controlled by Armenia, while Russian peacekeepers in Nagorno-Karabakh largely stood by. Since the fall of the Armenian enclave in September 2023, Azerbaijan’s relations with Russia have steadily worsened. In Baku, the need to rely on Moscow’s goodwill has greatly diminished, giving the country greater confidence in its foreign policy. As a result, Azerbaijan has expanded ties with Israel and Pakistan, improved relations with Iran, strengthened strategic cooperation with Central Asian countries such as Uzbekistan and Kazakhstan, and, most notably, established a strategic partnership agreement with China.

To balance Russia, Azerbaijan needs not only Turkey, its traditional ally, and stable relations with Iran, but also strong ties with the U.S. Although Washington has at times encouraged dialogue with Moscow over the war in Ukraine, it has also demonstrated its ability to pursue an independent agenda in the South Caucasus, often at odds with Russia’s core interests. The TRIPP agreement is one example of this approach. It angered Moscow because the deal reduced Russian influence and encouraged both Azerbaijan and Armenia to follow Washington’s lead. For Baku, therefore, greater U.S. involvement in the region translates into reduced dependence on Moscow.

CONCLUSIONS: The current level of tension with Russia has eased, following a familiar pattern in Azerbaijan’s dealings with Moscow and other neighboring states. It also shows that Russia cannot afford to abandon Azerbaijan or enter a cycle of escalation with Baku. Moscow is unable to handle another major crisis along its borders and remains dependent on Azerbaijan for transit within the INSTC project. Looking ahead, a continued period of stable but cautious bilateral relations is likely, without major escalation, yet unlikely to develop into deeper cooperation. The relationship will remain based on pragmatic, transactional engagement, while over time the geopolitical gap between the two countries can be expected to grow increasingly evident.

AUTHOR’S BIO: Emil Avdaliani is a research fellow at the Turan Research Center and a professor of international relations at the European University in Tbilisi, Georgia. His research focuses on the history of the Silk Roads and the interests of great powers in the Middle East and the Caucasus.