Azerbaijan is currently negotiating to expand its natural gas exports to at least three additional European countries. While President Ilham Aliyev did not specify the countries involved, Azerbaijan has become a significant energy partner for Europe, especially since it began exporting gas to the region in 2020. Azerbaijan already supplies eight European countries and has plans to double its gas exports to the region by 2027.
At the same time, both Russia and Ukraine have approached Azerbaijan to help facilitate gas transit through Ukraine to Europe, as an important transit agreement between Russia and Ukraine is set to expire at the end of this year. Despite Russia halting most of its pipeline gas deliveries to Europe, some Russian gas still passes through Ukraine to meet the demand in Austria, Hungary, and Slovakia. The potential expiration of the agreement raises concerns about further reductions in Russian gas supplies.
One potential solution to maintaining gas transit through Ukraine could be replacing Russian gas with supplies from countries like Azerbaijan or Turkey. This arrangement would allow Ukraine to continue benefiting from transit tariffs and ensure Europe remains supplied with gas.
In 2024, Azerbaijan exported 24 billion cubic meters of gas, with half of that going to Europe. Italy is one of the most recent buyers, joining Greece, Bulgaria, Romania, Hungary, Serbia, Slovenia, and Croatia.
