Fuel shipment from Azerbaijan reaches Armenia for first time since Soviet era

(Horizon Weekly) – Azerbaijan has delivered a shipment of petroleum products to Armenia, marking the first transfer of fuel between the two countries since the dissolution of the Soviet Union, Azerbaijani media outlets reported on December 18.

The shipment includes 22 rail tank cars carrying AI 95 gasoline produced by the state owned oil company SOCAR. The cargo was transported to Armenia by rail through Georgian territory, following discussions between senior Armenian and Azerbaijani officials late last month.

Talks addressing fuel exports took place on November 28 in Gabala during a meeting between Azerbaijani Deputy Prime Minister Shahin Mustafayev and Armenian Deputy Prime Minister Mher Grigoryan. While both sides later acknowledged that energy related exports were discussed, Armenian officials stressed that any potential transactions would depend on agreements reached by private companies rather than government directives.

Deputy Prime Minister Grigoryan confirmed that the subject had been raised, stating that discussions had occurred without providing details on volumes or contractual arrangements. Azerbaijani presidential aide Hikmet Hajiyev also indicated that petroleum exports were among several economic issues considered alongside negotiations on border related matters.

According to Azerbaijani sources, the fuel shipment is being treated as a commercial sale, with pricing based on international market rates. Georgian authorities facilitated the transit, with Georgian Railways instructed to carry the cargo without charge on a one time basis.

Armenia currently imports more than 60 percent of its fuel from Russia, including approximately 230,000 tonnes of petrol and 175,000 tonnes of diesel in 2024. The remainder is sourced from Iran, Romania, Malta and Turkey. Armenian officials have previously stated that diversification of supply remains constrained by infrastructure, pricing and geopolitical considerations.

The fuel delivery follows earlier cross border cargo movements involving Armenia, including the transit of Russian and Kazakh grain through Georgian territory. Armenian authorities have indicated that additional wheat shipments remain in transit.

While Armenian authorities frame these developments as technical measures to reopen communications and trade, critics warn that deepening economic engagement under existing conditions may strengthen Azerbaijan’s leverage over Armenia. This comes as Azerbaijan continues to occupy internationally recognized Armenian territory and detain Armenian prisoners, leading to concerns that commercial arrangements are proceeding in the absence of accountability, security guarantees or resolution of ongoing violations.

Conclusive information has not been released regarding future fuel deliveries, long-term supply arrangements, or Armenian companies involved in the shipment.