Ministry of Investment, Industry and Trade of the Republic of Uzbekistan

Uzbek-Azerbaijani relations demonstrate a stable and steadily advancing dynamic, underpinned by deep trust, mutual support, and increasingly close interaction at all levels. Since the establishment of diplomatic relations on October 2, 1995, cooperation between Tashkent and Baku has evolved from its initial phase into the formation of a full-fledged alliance.

 

The foundation of political cooperation was laid by the Treaty of Friendship and Cooperation. This was logically followed by several key documents: the Declaration on Further Strengthening of Strategic Partnership; the Declaration on Deepening Strategic Partnership and Expanding Comprehensive Cooperation, signed on June 21, 2022, in Tashkent; the Agreement on the Establishment of the Supreme Interstate Council, concluded on August 22, 2023, in Baku; and finally, the Treaty on Allied Relations, formalized on August 23, 2024, in Tashkent. These documents reflect not only the intensification of political dialogue but also a strategic convergence based on a shared vision for the future of the region.

 

High-level reciprocal visits have become vivid examples of strong political coordination: the official visit to Uzbekistan on June 21–22, 2022; the state visit to Azerbaijan on August 22–23, 2023; and the return state visit to Uzbekistan on August 22–23, 2024. These events not only confirmed the commitment to close cooperation but also served as platforms for launching practical initiatives in economics, investment, and regional collaboration.

 

Trade and economic cooperation between the two countries is developing within the framework of a free trade regime. The main coordinating mechanism is the Joint Intergovernmental Commission on Cooperation, co-chaired by Uzbekistan’s Minister of Investment, Industry and Trade, Laziz Kudratov, and Azerbaijan’s Minister of Economy, Mikayil Jabbarov. Fourteen commission meetings have been held to date, the latest on June 20, 2025, in Baku. A major outcome of the June 2022 summit was the signing of the Intergovernmental Agreement on Interregional Cooperation, which led to successive Regional Forums: the first held on February 14, 2023, in Tashkent; the second on May 21, 2024, in Guba; and the third on June 20, 2025, in Baku. In parallel, Business Council meetings were held — the third took place on February 24, 2023. The council has been operational since 2020.

 

Regional cooperation has reached a qualitatively new level: agreements have already been signed between the cities of Tashkent and Baku, Samarkand and Ganja, Bukhara and Lankaran, Khiva and Shusha, Kokand and Sheki, Gulistan and Fuzuli, Namangan and Mingachevir, Termez and Bilasuvar. A phased roadmap is currently being developed to further expand city-to-city partnerships.

 

The growth in mutual trade is one of the most striking indicators of economic convergence. Between 2017 and 2024, trade turnover increased from $32.4 million to $253.5 million. In 2024 alone, trade volume rose by 7.3%, reaching $253.5 million, including $208.1 million in exports (up 56%) and $45.4 million in imports. In the first five months of 2025, trade turnover totaled $90.5 million — a 25.2% increase — with exports at $80.9 million (up 26.6%) and imports at $18.5 million. The main growth in exports came from food products, vehicles, and mechanical equipment, while imports saw increases in ferrous and non-ferrous metals and food. Overall, exports include industrial goods, machinery and transport equipment, food products, beverages and tobacco, chemical goods, and various finished products; imports consist of similar categories, complementing the countries' mutual needs.

 

Investment cooperation also shows a positive trend. As of June 1, 2025, there are 280 enterprises in Uzbekistan with Azerbaijani capital participation, including 58 joint ventures and 222 individual entities. These enterprises operate in sectors such as trade, mechanical engineering and metalworking, finance and insurance, real estate, energy, services, jewelry manufacturing, and the food and light industries.

 

Investment collaboration between Uzbekistan and Azerbaijan is becoming increasingly practical, covering key economic sectors.

 

In the textile industry, two large-scale clusters are actively being developed. The first project, worth $104.8 million, is implemented by “Global Textile” in partnership with PASHA Holding. High cotton yield indicators have already been achieved in the Yevlakh and Aghjabedi districts, with 1,045 hectares allocated for sowing in 2025 and spring planting completed. Modernization of a cotton-processing plant in Ujar is underway, laying the foundation for deep local processing of raw materials. The second cluster is being created by “TST Textile” on 5,800 hectares in the Imishli district and Mingachevir, with the support of the Azerbaijan-Uzbek Investment Company. Planting has been completed on 2,000 hectares, and construction of a plant will begin in August 2025. The Azerbaijani side is investing $19 million in infrastructure — electricity, roads, and gas — and the company is negotiating the construction of spinning, weaving, and sewing facilities in the Mingachevir Industrial Park.

 

An important initiative in sericulture is the launch of a silk fabric production project. The company AzSilk, supported by Azerbaijan’s Ministry of Economy, has launched the first phase of a processing facility in Barda with an annual capacity of 11,000 tons, with drying facilities already leased and a feed base established. The second phase — production of finished goods — is planned for launch in September 2025.

 

In the tourism sector, a major project is underway to build the Ritz-Carlton hotel in Tashkent at a cost of $200 million, along with the elite residential complex Tashkent Luxury Residences, valued at $133 million and developed with the participation of Agalarov Development. In Namangan, a new city is being built, including a business center and high-rise residential buildings, at an investment of $55 million.

 

Equally important is the project to expand car production in Hajigabul, implemented by Uzavtosanoat JSC in cooperation with Azermash, with investments totaling $54 million. Additionally, a building materials production facility is being developed in Uzbekistan’s Kashkadarya region, including gypsum and dry mixes, with a total investment of $100 million, involving the company Matanat-A.

 

These initiatives show that investment projects span a wide range of industries and contribute to further strengthening economic ties, deepening industrial cooperation, and integrating production chains between the two countries.

 

Cooperation in the transportation sector is also progressing steadily. In 2024, the total volume of cargo transported between the countries reached 105,000 tons — 50,300 tons by rail and 54,500 tons by road. Transit of Uzbek goods through Azerbaijan’s territory reached 1,091,700 tons, underscoring Azerbaijan’s role as a reliable transport hub. Air connectivity remains a vital link: regular flights between Tashkent and Baku operate eight times a week — three by Uzbekistan Airways and five by AZAL. Agreements have been reached to increase the number of flights to 21 per week. In 2024 alone, Uzbekistan Airways operated 358 flights, transporting over 45,000 passengers and 138 tons of cargo.

 

In conclusion, Uzbek-Azerbaijani relations can confidently be described as a model of next-generation strategic partnership. They are based on political trust, economic pragmatism, and cultural affinity, allowing them not only to withstand the tests of time but also to set the pace for integration processes in Central Eurasia.