Azerbaijan and the European Union
Encyclopedia
Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...

 and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

have maintained a positive relationship through the years and are more closely linked. Azerbaijan is currently part of the European Neighborhood Policy and the Council of Europe, and is a large recipient of aid and infrastructure investment from the European Union.

Background

Until the fall of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

, Azerbaijan had little contact with non-Soviet Europe. During the Soviet years, North Azerbaijan (today’s Republic of Azerbaijan) became the Azerbaijan SSR. It remained that until the Azerbaijani Supreme Court declared independence from the Soviet Union in September 1989, only to have this declaration made invalid in November 1989 by authorities in Moscow. The state finally gained independence in August 1991, and joined the United Nations in 1992. Through the UN and government policies, Azerbaijan has reached out to the international community, especially Europe, and has opened up its economy.

Formal relations with the EU began in 1996 when the EU-Azerbaijan Partnership and Cooperation Agreement was signed. This agreement entered into force in 1999. This agreement marked the beginning of a mainly positive relationship between the Republic of Azerbaijan and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

, with both sides benefitting from the relationship.

Azerbaijan also strengthened its relations with Europe by becoming the 43rd state to join the Council of Europe
Council of Europe
The Council of Europe is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation...

 on January 25, 2001. By doing so, Azerbaijan opened itself up even more to Europe and the West. Since joining, Azerbaijan has ratified 50 treaties and has been actively involved in the Council.

As the EU grew in size and scope, it launched the European Neighborhood Policy (ENP). Azerbaijan joined the policy in 2004, and the ENP’s action plan for Azerbaijan was adopted on November 14, 2006, after being passed by the Azerbaijani government and the European Commission. Key items included on the plan are investment in Azerbaijan’s infrastructure, partial integration of the Azerbaijani economy into Europe’s, and partnerships with Azerbaijan on extracting oil from the Azerbaijani controlled part of the Caspian Sea.

Opinions

Opinions about Azerbaijan’s increased relationship with the European Union and the West are mostly positive, but there are concerns rising from the expanded relationship.
Azerbaijan and the European Union share a common energy agenda, and both support the building of a pipeline to bring Azeri oil to Europe. The European Commissioner for Energy, Andris Piebalgs
Andris Piebalgs
Andris Piebalgs is a Latvian politician and diplomat, currently serving as European Commissioner for Development at the European Commission. Between 2004 and 2010 he served as Commissioner for Energy.-Career:...

, said on November 7, 2008, that “recent events in the Caucasus have shown once again that this is a critical time for energy issues in the region and that EU-Azerbaijan energy cooperation should be strengthened now more than ever.” As more and more states are looking to Azeri oil, the Commissioner sees a strong relationship between the EU and Azerbaijan as crucial for securing future European energy supplies, as well as crucial for helping the Azerbaijani economy and infrastructure to develop.

Azerbaijan’s current government is pro-Western and is committed to working with the European Union to strengthen its economy and political structure. Azerbaijan’s President, Ilham Aliyev
Ilham Aliyev
Ilham Heydar oglu Aliyev is the President of Azerbaijan since 2003. He also functions as the Chairman of the New Azerbaijan Party and the head of the National Olympic Committee...

, stated on April 24, 2004 that “’[Azerbaijan’s] current strategic choice is integration in Europe, European family and institutions. We are strongly committed to this policy. We will do our utmost so that Azerbaijan meets all standards and criteria peculiar to Europe. Our policy is such and we have been pursuing it for a long time. Current events in Azerbaijan are the results of this continued policy.’” Aliyev’s government sees the benefits to working with Europe, and is engaged in welcoming European business, investment, and aid.

At the same time, Azerbaijan still has strong ties to Russia, Iran (where the majority of the ethnic Azeri population lives), and its neighboring states on the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...

 and in the Caucasus
Caucasus
The Caucasus, also Caucas or Caucasia , is a geopolitical region at the border of Europe and Asia, and situated between the Black and the Caspian sea...

. The government is focused on developing Azerbaijan with a combination of European and more regional investments. These interests occasionally clash.

Present situation

Azerbaijan and the European Union have similar beliefs on most policies and are presently working together to forward their combined interests. The European Community has developed a three year aid plan for Azerbaijan, called the National Indicative Program (NIP), for which the EU has allocated a budget of €92 million over three years (2007–2010). The main goals of this program are to develop government agencies, run them more efficiently, and help Azerbaijan to develop its internal infrastructure to promote foreign investment and business growth. The EU has also set up a European Instrument for Democracy and Human Rights (EIDHR) office in Baku to give advice to Azerbaijan’s new democratic government and to make sure that human rights are protected.

The European Union and Azerbaijan are strong partners on energy policy, and are working together on a number of projects. The main project is the building of a pipeline to connect the Caspian oil supply to Europe, providing a viable route for oil and gas to reach consumers. Europe is also supporting Azerbaijan’s state sponsored program for the increased use of alternative and renewable energy sources. Azerbaijan is a partner country of the EU INOGATE
INOGATE
INOGATE is an international energy co-operation programme between the European Union , Turkey and countries of the NIS, with the exceptions of the Baltic States and the Russian Federation. Formally it describes itself as supporting "international cooperation between the European Union, the...

 energy programme, which has four key topics: enhancing energy security
Energy security
Energy security is a term for an association between national security and the availability of natural resources for energy consumption. Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led...

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