As the Iran war and geopolitical tensions continue, the role of the South Caucasus region has come to the fore.
“Cooperation among the countries of the South Caucasus opens new horizons for the entire region”, Georgian Prime Minister Irakli Kobakhidze said after meeting with Azerbaijan President Ilham Aliyev.
He also stated that global geopolitical shifts have further elevated the importance of the Middle Corridor, also known as the Trans-Caspian International Transport Route, as well as the strategic significance of the Black Sea and the South Caucasus as a whole.
The Middle Corridor’s significance is growing, mostly the situation with the Strait of Hormuz, which is considered one of the world’s most critical shipping chokepoints.
It is currently partially blocked by Tehran due to the ongoing Iran war, which has resulted in worldwide energy supply disruptions.
An alternative route being considered to reduce reliance on the Strait of Hormuz is the Caspian Sea. It is a multimodal logistics network linking China to Europe via Central Asia and the South Caucasus.
It passes through Azerbaijan and Georgia while bypassing Russia, thus reducing dependency on Russian transit and shortening transportation times.
These developments are also reshaping the situation across the whole region.
Aliyev said in a press statement that “a completely new situation is emerging in the South Caucasus”, and the countries of this region “must not miss these opportunities”.
“Unfortunately, peace, security, stability, and tranquility are being disrupted in many parts of the world, resulting in bloody clashes, wars, suffering, and losses”, Azerbaijan's head of state said, emphasising that “a similar situation once existed in the South Caucasus”.
“But today, the South Caucasus is turning into a space of peace, tranquility, security, and cooperation”, added Aliyev, highlighting Georgia’s role in this process.
Georgia is allowing its territory to be used for trade between Azerbaijan and Armenia, making its role more visible in facilitating the peace process between these neighbouring countries.
Azerbaijani oil and gas are exported to global markets via Georgia, and oil resources from the eastern shores of the Caspian Sea are also transported through both countries.
With regards to bilateral cooperation, last year, trading between the nations exceeded $800 million (€735 million).
To date, Azerbaijan has invested $3.7 billion (€3.4 billion) into the Georgian economy, and new investment projects are in discussion.
