Azerbaijan Boosts Economic Ties with Serbia Amidst EU Enlargement Uncertainty

In a remarkable display of diplomatic and economic cooperation, Azerbaijan has emerged as a reliable partner for Serbia, particularly during the 2008 global financial crisis. This partnership has continued to flourish despite the EU's lukewarm response to Serbia's enlargement bid, with Azerbaijan offering significant credit lines to support various sectors in Serbia.

The economic cooperation between Serbia and Azerbaijan spans multiple sectors, including infrastructure projects, energy, defense industry, agriculture, food production, telecommunications, and information technology. Azerbaijan's involvement in the energy sector, especially in gas supply, has positioned Baku as a crucial partner for Belgrade, drawing it into the complex geopolitics of the Balkans. The two countries have already initiated gas imports, and there are plans for joint projects to construct a gas-powered power plant, further solidifying their energy partnership.

The development of infrastructure between Serbia and Azerbaijan requires a collaborative effort with other countries such as Romania, Bulgaria, Georgia, and Türkiye. Integrating new transport and logistics infrastructure into the broader efforts to enhance connectivity between Europe and Eurasia is essential for the long-term success of these projects. However, challenges have arisen, including a temporary halt in gas supplies from Azerbaijan to Serbia due to issues with the Shah Deniz field, highlighting the complexities and potential vulnerabilities in their energy cooperation.

As Serbia navigates its relationships with both the EU and countries like Azerbaijan, it must balance its economic and political interests carefully. The partnership with Azerbaijan offers Serbia a significant opportunity for economic growth and diversification, but it also underscores the need for strategic management of its international relations to maximize benefits while minimizing risks.