The Republic of Azerbaijan and the European Union (EU) have maintained a generally positive relationship through the years and have become more closely linked since 1991, although both have faced several challenges in recent years. Azerbaijan is currently part of the European Neighborhood Policy, the Eastern Partnership and the Council of Europe, although the country has announced that it will consider withdrawing from the latter. According to Charles Michel, former President of the European Council, relations between the two are difficult, with significant tensions over issues such as human rights, political dialogue, and regional cooperation.
History
Until the Dissolution of the Soviet Union, Azerbaijan had little contact with non-Soviet Europe. During the Soviet years, the Azerbaijan Democratic Republic (today's Republic of Azerbaijan) became the Azerbaijan SSR. It remained that way until the Azerbaijani Supreme Court declared independence from the Soviet Union in September 1989, only to have this declaration made invalid in November 1989 by authorities in Moscow. The state finally gained independence in October 1991, and joined the United Nations in 1992.“History of Azerbaijan.” http://www.azerb.com/az-hist.html. 2004, Accessed 12 November 2008
The European Council's Regulation (EC) No 1975/95 of 4 August 1995 provided for food aid to be provided for the people of Azerbaijan and several other countries in western Asia.EUR-Lex, Council Regulation (EC) No 1975/95 of 4 August 1995 on actions for the free supply of agricultural products to the peoples of Georgia, Armenia, Azerbaijan, Kyrgyzstan and Tajikistan, accessed on 18 February 2025
In 1996 formal relations with the European Union began with the signature of the EU-Azerbaijan Partnership and Cooperation Agreement (PCA). This agreement entered into force in 1999.“European Commission External Relations: Azerbaijan.” http://ec.europa.eu/external_relations/azerbaijan/index_en.htm. 25 November 2008, Accessed 26 November 2008.
On January 25, 2001, Azerbaijan became the 43rd state to join the Council of Europe.“Azerbaijan and the Council of Europe.” http://www.coe.int/T/E/Com/About_Coe/Member_states/e_az.asp#TopOfPage. 5 June 2008, Accessed 12 November 2008. Since joining, Azerbaijan has ratified 50 treaties.“Statistics on Signatures and Ratifications: Azerbaijan.” http://conventions.coe.int/Treaty/Commun/ListeStats.asp?PO=AZE&MA=999&CM=17&CL=ENG . 12 November 2008, Accessed 12 November 2008.
In July 2003, the EU appointed a Special Representative for the South Caucasus. Since 2004, Azerbaijan has been included (as a southern Caucasus country) in the European Neighborhood Policy (ENP), and since 2009 also in the Eastern Partnership initiative. In 2016, a Protocol on Azerbaijan's participation in EU Programmes and Agencies was adopted. Key items included on the plan are investment in Azerbaijan's infrastructure, partial integration of the Azerbaijani economy into Europe's, and partnerships with Azerbaijan in extracting oil from the Azerbaijan-controlled part of the Caspian Sea.“European Neighborhood Policy: Azerbaijan.” http://ec.europa.eu/world/enp/partners/enp_azerbaijan_en.htm. 19 March 2007, Accessed 12 November 2008.
In February 2017, the EU and Azerbaijan launched negotiations to replace the original agreement adopted 20 years prior.
On January 26, 2023, the Parliamentary Assembly of the Council of Europe (PACE) passed a resolution rejecting the ratification of the credentials of the Azerbaijani delegation. The resolution was adopted with 76 votes in favor, 10 against, and 4 abstentions, barring Azerbaijan’s delegation from participating in most PACE activities. On January 24, 2024, the Azerbaijani delegation to PACE announced at a meeting of the Assembly its decision to cease interaction and presence in PACE until further notice. President of Azerbaijan Ilham Aliyev clarified as well and stated that Azerbaijan will consider leaving and withdrawing entirely from the Council of Europe. Multiple statements from the Azerbaijani side have been released stating that "Azerbaijan no longer needs CoE."
On March 5, 2024, Parviz Baghirov, head of the National Erasmus+ Office in Azerbaijan announced that the Erasmus+ programme would put its activities on an unofficial hold, and that the National Erasmus+ Office would be closed. Baghirov affirmed that the Erasmus Mundus Joint Master’s Degrees would be left unaffected by the circumstances, since the programme is structured differently, as it is aimed at individual candidates. Azerbaijani opposition leaders such as Isa Gambar would go on to speak out against the suspension of activities of the programme. On August 8, 2025, the EU announced that it welcomed the peace agreement signed between Azerbaijan and Armenia, and that the EU fully supports the normalization process between Azerbaijan and Armenia.Armenia/Azerbaijan: Statement by the High Representative on behalf of the European Union on the initialling of the Armenia-Azerbaijan Peace Treaty
Political relations The EU and Azerbaijan have worked together on various political agreements, the EU-Azerbaijan Partnership and Cooperation Agreement of 1999 being the most important one. The agreement aims at enhancing trade, investment, the economy, legislation and culture within the framework of the EU-Azerbaijan Partnership and Cooperation. Azerbaijan is also the part of the European Neighbourhood Policy (ENP) and the Eastern Partnership initiative, and a member of the Organisation of the Black Sea Economic Cooperation (BSEC).
As of 2018 discussions on updating the legal basis for relations between the EU and Azerbaijan were ongoing.
The Azerbaijani government has been investigated by more than 10 European media organizations and was accused of laundering money to the United Kingdom. The "Azerbaijani Laundromat" consisted of sending 2.5 billion euros to European politicians and Azerbaijani elites; the money was also used to purchase luxury goods. One of the reasons why the laundering took place was because the Azerbaijani government needed to keep a positive image in Europe to gain support for the Southern Gas Corridor. The corridor is a main reason for the laundering and can explain the government's heavy lobbying at the European level. The scandal led to investigations by multiple European institutions. The Parliamentary Assembly of the Council of Europe expelled 13 members for accepting bribes from the Azerbaijani government.
Economic and financial relations EU-Azerbaijani economic and trade relations are regulated by the Partnership and Cooperation Agreement (PCA). The European Union is Azerbaijan's first trading partner representing 48.5% of Azerbaijan's total trade. The EU's exports to Azerbaijan, which were worth €1.8 billion in 2016, consist primarily of machinery and transport equipment whereas EU imports from Azerbaijan, worth €7.6 billion in 2016, cover mainly oil and gas (98% of total imports). The EU is a key foreign investor in Azerbaijan. In 2013, its Foreign Direct Investment (FDI) in the country was €4.7 billion. The PCA does establish economic cooperation aimed at strengthening business links and developing market-based rules and practices for trade in goods and services. Closer economic integration with Azerbaijan is also followed through the European Neighbourhood Policy (ENP) and the Eastern Partnership initiative of the EU. Azerbaijan is receiving technical assistance from the EU to help it become a World Trade Organization member. EU support to Azerbaijan amounts to around €30 million each year. Non-Government Organisation (NGO) projects under Human Rights, Democratisation and Non-State Actor budget lines (EIDHR and NSA) also get funding.
The EU is the largest foreign grant donor to and investor in Azerbaijan, both in the government sector and civil society, making available over 600 million EURO of bilateral EU assistance since 1992.
EU assistance used to focus on humanitarian aid, food security and social protection. As economic and political conditions in the country have improved dramatically, there is now more emphasis on the European Neighbourhood Policy Action Plan, Non-oil economy, government capacity-building and programmes like INOGATE, TRACECA, TEMPUS, and ERASMUS MUNDUS.
Opinions As of 2008, Azerbaijan and the European Union shared a common energy agenda, and both support the building of a pipeline to bring Azeri oil to Europe. on November 7, 2008, the European Commissioner for Energy, Andris Piebalgs said, that "recent events in the Caucasus have shown once again that this is a critical time for energy issues in the region and that EU-Azerbaijan energy cooperation should be strengthened now more than ever".Commissioner Piebalgs Underlines in Baku the Strategic Role of Azerbaijan for the Realization of the Southern Gas Corridor.” http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1664&format=HTML&aged=0&language=EN&guiLanguage=en. 7 November 2008, Accessed 12 November 2008.
Azerbaijan's president, Ilham Aliyev, stated on April 24, 2004, that "[Azerbaijan's] current strategic choice is integration in Europe, European family and institutions. We are strongly committed to this policy. We will do our utmost so that Azerbaijan meets all standards and criteria peculiar to Europe. Our policy is such and we have been pursuing it for a long time. Current events in Azerbaijan are the results of this continued policy."“President of Azerbaijan: Priorities/Foreign Policy.” http://www.president.az/browse.php?sec_id=34 . 18 September 2006, Accessed 12 November 2008. Aliyev's government sees the benefits of working with Europe and is engaged in welcoming European business, investment, and aid.
The government is focused on developing Azerbaijan with a combination of European and more regional investments. These interests occasionally clash.Mirfendereski, Guive. A Diplomatic History of the Caspian Sea. New York, Palgrave, 2001. Page 186.
In 2016 the President of Azerbaijan Ilham Aliyev responded to a moderator's question at the Munich Security Conference of why Azerbaijan didn't sign an Association Agreement with the European Union:
In a 2023 poll by think-tank the Agora Analytical Collective directed towards young Azeris it was determined that 61% of them supported joining the European Union, compared to the Eurasian Economic Union which appealed only to the 3,3% of pollsters.
Present situation
Azerbaijan and the European Union have similar beliefs on most policies and are presently working together to forward their combined interests. The European Community developed a three-year aid plan for Azerbaijan, called the National Indicative Program (NIP), with a budget of €92 million over three years (2007–2010). The main goals of this program are to develop government agencies, run them more efficiently, and help Azerbaijan to develop its internal infrastructure to promote foreign investment and business. The EU has also set up a European Instrument for Democracy and Human Rights (EIDHR) office in Baku to give advice to Azerbaijan's government and to make sure that human rights are protected.