Serbia–Azerbaijan Relations: Strategic Depth through Energy and Connectivity

“We are bound by a sincere friendship, and there is no way anyone can turn Serbia against Azerbaijan or the other way round. We support each other's territorial integrity, that is how it has been and that is how it will be.” - A quote following a meeting between Presidents Vučić and Aliyev in Baku on December 21, 2022

From Initial Interaction to Strategic Connectivity

Serbia and Azerbaijan established diplomatic relations in August 1997, laying the groundwork for a partnership that has since evolved from cordial friendship into a genuine strategic alliance. Built on mutual respect for sovereignty and territorial integrity, shared economic priorities, and a growing energy partnership, the relationship reached a defining moment with the 2013 Declaration on Friendly Relations and Strategic Partnership signed in Baku. Since then, cooperation has expanded through frequent high-level meetings (especially between Presidents Ilham Aliyev and Aleksandar Vučić) and through 57 bilateral agreements signed between 2010 and 2023.

In this new geopolitical reality, Azerbaijan’s importance has surged as Europe works to reduce its dependence on Russian gas. Since the start of the Ukraine war in 2022, energy diversification has become not just an economic goal but a strategic necessity. The shift is now toward reliable partners who do not weaponize energy supply chains, and Azerbaijan stands out as a perfect example of that approach. With its expanding production capacity, strategic pipelines, and integration into key corridors like the Southern Gas Corridor and the planned US-backed India–Middle East–Europe Economic Corridor (IMEC), Baku aims to position itself as an important player on Europe’s evolving energy map. For Serbia, strengthening cooperation with Azerbaijan means more than securing energy; it is about anchoring itself within the new network of strategic connectivity and breaking up with its Russian-based energy dependence.

Political and Strategic Framework

The current institutional framework for deepening cooperation between Serbia and Azerbaijan consists of:

• Foundational Agreements: The 2013 Declaration on Strategic Partnership laid the groundwork for this relationship, affirming respect for sovereignty and territorial integrity (Serbia’s support for Azerbaijan’s position on Nagorno-Karabakh and Azerbaijan’s firm backing of Serbia regarding Kosovo*). This was followed by the 2018 Joint Action Plan, which turned broad commitments into practical cooperation across security, trade, and infrastructure, and the 2022 MoU on the Strategic Partnership Council, which created a permanent channel for top-level dialogue between Presidents Vučić and Aliyev.

  
  

• Mutual Support: On the international stage, this partnership has been consistently reinforced by reciprocal supportive actions. Azerbaijan stood by Serbia in key moments, such as abstaining on Kosovo’s UNESCO membership in 2015, while Serbia reaffirmed its backing of Azerbaijan’s territorial integrity. This alignment reflects not just diplomatic coordination but genuine political solidarity rooted in shared principles.

  
  

• Strategic Positioning: Both countries have their interests that benefit from cooperation. Azerbaijan expands energy exports further into Central Europe and the Balkans through Serbia (given the geography), and Serbia gains a valuable partner during its current efforts to diversify its energy supply as soon as possible.

Economic and Trade Cooperation

The Serbia–Azerbaijan economic partnership has transformed from modest beginnings into a dynamic and steadily expanding relationship in these critical sectors:

• Agreements and Mechanisms: The foundations were laid in 2010 with agreements on investment protection and double taxation avoidance, followed by the creation of an Intergovernmental Commission on Trade and Economic Cooperation in 2011, which continues to meet regularly (most recently for its 9th session in October 2025). Through these mechanisms, both countries have built a dense legal and institutional web: 57 agreements signed, and 13 more under negotiation, spanning energy, finance, agriculture, and digital trade. Cooperation between Serbia’s Development Agency and Azerbaijan’s SME agency (KOBIA), launched through a 2022 MoU, opened the door to new joint ventures and business exchange.

  
  

• Trade Growth: Although starting from a low base, trade between the two countries has accelerated impressively. Bilateral turnover rose from just $8 million in 2019 to roughly $56 million by 2021, driven by Serbian exports of industrial goods (machinery, pharmaceuticals, and processed materials) to Azerbaijan. The real breakthrough came in 2024, when Azerbaijan began supplying natural gas to Serbia. That year, total trade volume surged to over $190 million, with energy exports alone exceeding $100 million. This milestone not only diversified Serbia’s energy mix but also injected new momentum into overall economic ties. Officials on both sides now project 15–20% annual growth, driven by lower transport costs, SME cooperation, and the opening of new corridors of strategic connectivity.

  
  

• Investment and Connectivity Initiatives: Investment flows, though still emerging, carry symbolic and strategic weight. The State Oil Fund of Azerbaijan (SOFAZ) reportedly maintains a $72.7 million portfolio in Serbia, likely in real estate and bonds, while Azerbaijani construction company AzVirt has become an important player in Serbia’s infrastructure boom, building segments of the Ruma–Šabac highway and other key routes that strengthen regional transport links. Joint ventures in agriculture, tourism, and manufacturing are also advancing, with a 2025 Roadmap for Cooperation setting out plans for deeper SME and co-investment ties.

Serbia gains a gateway to the Caspian region, and potentially further into Central Asia, following President Vučić’s recent visit to Uzbekistan and the signing of over ten new cooperation agreements. Azerbaijan, on the other side, through Serbia, secures a stable entry point into the Balkans, a region of roughly 55 million people.

Energy Cooperation – The Core of the Strategic Partnership

Energy has emerged as the centerpiece of Serbia–Azerbaijan relations, giving the partnership its strategic depth and long-term direction. What began as a diplomatic framework has now evolved into one of Europe’s most promising examples of strategic connectivity in the energy sector.

Agreements and Milestones

A series of recent accords has rapidly advanced cooperation:

• The Energy Cooperation Agreement (June 2022) set the stage for collaboration in oil, gas, and renewables, just as Europe’s energy crisis was taking shape.

  
  

• The Natural Gas Supply Contract (November 2023) between Srbijagas and SOCAR secured deliveries of 400 million m³ of gas per year from 2024 to 2026, officially integrating Serbia into Azerbaijan’s expanding export network.

  
  

• The commissioning of the Bulgaria–Serbia Gas Interconnector (December 2023) was a true game-changer. With its 1.8 bcm/year capacity, this EU-financed pipeline connected Serbia to the Southern Gas Corridor via Bulgaria and to LNG sources through Greece, covering around 60% of Serbia’s gas demand.

  
  

• The Emergency Winter Supply Deal (September 2024) further strengthened Serbia’s security by guaranteeing an extra 1 million m³ of gas per day through the winter months. This arrangement, totaling about 150 million m³, highlighted Azerbaijan’s reliability during peak demand and included plans to expand annual volumes to 1 bcm after 2026.

  
  

• Finally, the MoU on Green Energy Cooperation (September 2024) signaled a forward-looking shift toward renewables. Covering wind, solar, hydrogen, and carbon capture, it also invited Serbia to join the visionary Green Energy Corridor, a 4 GW undersea cable across the Black Sea transmitting Azerbaijani renewables to Eastern Europe.

Strategic Significance

For Serbia, this energy partnership is transformative. In 2022, nearly all of Serbia’s 2–2.5 bcm gas imports came from Russia through a TurkStream offshoot. With Azerbaijani gas now flowing since January 2024, Serbia has, for the first time, secured alternative gas supplies, directly supporting EU diversification goals. By connecting to the Southern Gas Corridor, Belgrade became part of the wider Eurasian energy network, with President Vučić predicting imports will double by 2025 and reach full pipeline capacity by 2026. Azerbaijan, in turn, secures a permanent footprint in the Balkans, strengthening its presence in Europe’s energy landscape.

Handling Challenges

In January 2025, a temporary suspension of Azerbaijani gas flows, caused by a technical issue at the Shah Deniz field, tested the resilience of this new partnership. President Vučić announced that “because of force majeure… we cannot count on 1.7 million cubic meters per day”. Serbia relied on reserves from Banatski Dvor storage until flows resumed a week later. Rather than undermining confidence, the incident underscored the importance of diversified routes (including future access to LNG via Greece) and spurred faster cooperation on joint storage and backup infrastructure.

The next phase will likely see expansion of gas deliveries toward 1 bcm per year, the realization of the Black Sea Green Energy Corridor, and potentially cooperation on oil or LNG swaps, further embedding Serbia and Azerbaijan as central pillars of Europe’s new, diversified energy map.

Defense and Security Cooperation

Beyond economics and energy, Belgrade and Baku have gradually built a foundation for defense and security cooperation, a delicate yet meaningful dimension and another layer of their broader partnership. Given Serbia’s policy of military neutrality and the sensitivities surrounding arms trade in both the Balkans and the Caucasus, progress has been measured but steady. The key framework is the Military-Technical Cooperation Agreement, signed in October 2021, which opened space for collaboration in defense technology, training, and industry. Importantly, the agreement reaffirmed mutual respect for sovereignty and territorial integrity, ensuring that cooperation would not be directed against third countries. This careful approach allowed both sides to deepen military exchanges while upholding Serbia’s balanced security posture.

Major Defense Deal in 2024

In February 2024, President Vučić confirmed that Serbia had concluded a $340 million arms contract with Azerbaijan for the export of 48 NORA B-52 155mm self-propelled howitzers, one of Serbia’s largest-ever defense export deals.

Image Source: Ministry of Defense of the Republic of Serbia

The NORA B-52 is a Serbian 155 mm/52-caliber self-propelled howitzer, equipped with a fully automatic 30-round loader plus six additional rounds carried on the vehicle, mountable on a truck or MAN chassis, and designed to deliver rapid, long-range indirect fire (up to about 52 km with V-LAP ammunition).

For Serbia, it strengthens its domestic defense industry, diversifies its customer base, and demonstrates its ability to engage with both Eastern and Western partners. The deal likely includes elements of technology transfer and joint production, expanding Serbia’s industrial capabilities. Politically, it allows Belgrade to reinforce ties with Baku while maintaining neutrality toward Armenia and Russia, framing the transaction as purely commercial and consistent with its support for peace in the Caucasus.

For Azerbaijan, the deal complements its diversified procurement strategy, adding Serbia to a list of suppliers that includes Turkey, Israel, Russia, and Belarus. It also symbolizes Baku’s growing trust in Belgrade as a partner outside Western embargo frameworks. By acquiring Serbian artillery, Azerbaijan gains reliable access to advanced European-made systems while avoiding dependency on any single source. This collaboration also signals that Azerbaijan views Serbia as a trusted partner that respects its security interests, further deepening political alignment.

Strategic Outlook & Linking the Dots: From Baku to IMEC

Looking ahead, Serbia–Azerbaijan relations are poised to transcend bilateralism and plug into larger strategic corridors spanning Eurasia. Three interconnected corridors stand out as opportunities:

Current state of the South Gas Corridor

Image Source: SOCAR

IMEC Corridor

Image Source: Atlantic Council

Middle Corridor

Image Source: Royal United Services Institute

Policy Proposals - Turning Momentum into a Long-Term Partnership

For Serbia to maximize benefits from its partnership with Azerbaijan, certain actions should be implemented:

1. Build Serbia into the Western Balkans’ main gas and oil hub: Serbia should connect its gas system more tightly with its neighbors (North Macedonia, Romania, Hungary, BiH, etc.) so gas from Azerbaijan can reach the whole region. It could also invest in small LNG terminals on the Danube to provide extra energy during winter. Azerbaijan could help by co-financing new gas storage or even oil storage in Serbia, making the supply stable all year.

   
   

2. Build a joint green-energy alliance: Both countries can win big from cooperation in wind and solar power. Azerbaijan has huge wind potential on the Caspian Sea and solar capacity in its southern regions, while Serbia also has a renewable potential in those sectors. They could co-invest in renewable projects in both countries and connect Serbia to the Black Sea Green Energy Corridor. This aligns with EU climate goals and gives Azerbaijan a place in Europe’s green-energy future.

   
   

3. Connect their economies through new trade corridors: Serbia should join planning talks on the India–Middle East–Europe Economic Corridor (IMEC) and work with Greece and Italy to upgrade railways and logistics routes. These routes could move goods from Asia to Europe through the Balkans.

   
   

4. Strengthen cooperation in oil, defense, and investment. Azerbaijan’s SOCAR and Serbia’s NIS could create long-term oil-supply deals that diversify Serbia’s imports beyond Russia. In defense, the two countries can continue building on the NORA B-52 howitzer program, adding more arms deals, joint training, and maintenance facilities in Serbia. This would boost Serbia’s defense industry and give Azerbaijan reliable European partners. They could also launch a Serbia–Azerbaijan Investment Fund to support joint ventures in storage, logistics, renewable energy, and infrastructure, using European and development-bank financing.

   
   

5. Emphasize bilateral relations as a symbol of pragmatism (cooperation despite differences): Serbia and Azerbaijan can present their partnership as a model of non-aligned cooperation, a Christian and a Muslim country working together for shared economic goals. By jointly promoting infrastructure and energy projects, they will show that small and mid-sized states can strengthen regional stability through connectivity, not division. This could result in the elevation of both countries’ international image.