By Dr. Vugar Bayramov, Member of the Parliament of Azerbaijan

President of Azerbaijan Ilham Aliyev held important high-level meetings within the framework of his official visit to Germany. Germany, one of the leading countries of the European Union, is ranked among the top three in the world in terms of size of its economy. With a nominal gross domestic product of more than $5 trillion, Germany is the largest economy in the European Union.

The strategic partnership between Azerbaijan and Germany creates new opportunities for the development of economic relations. In 2025, the trade turnover between the two countries amounted to $1 billion 376 million. Although this represents a certain decrease compared to the previous year, the trade turnover between Germany and Azerbaijan has increased by 68 percent in the last 5 years.

The European Union, of which Germany is a member, has long been Azerbaijan’s main trading partner. In 2025, more than 42 percent of Azerbaijan’s trade turnover of $43 billion 830 million fell to the European Union. 69 percent of Azerbaijan’s total exports of $22 billion 642 million were directed to the union states. A quarter of the foreign trade turnover falls to Italy, a member of the union. Of the 25.2 billion cubic meters of annual gas exports, 12.8 billion cubic meters are transported to Europe.

The fact that 10 countries from which Azerbaijan exports natural gas, including Germany, are members of the European Union means that our country’s position as an important partner in the European energy market is strengthened. Azerbaijan has transported about 60 billion cubic meters of natural gas to Europe in the last 5 years. Azerbaijan is among the top five countries exporting natural gas to the European Union.

Energy cooperation between Azerbaijan and Germany creates new opportunities for increasing trade turnover between the two countries. At the same time, the parties are strengthening cooperation in the field of investments. The visit of the President of Azerbaijan to Germany will open a new page in relations between the two countries.

During the visit, one of the important directions in the statements to the press by President Ilham Aliyev and Federal Chancellor Friedrich Merz was related to the establishment of the Azerbaijan-Germany Business Council.

As noted at the press conference, the establishment of the Azerbaijan-Germany Business Council is an important signal to the companies of both countries. This institutionally confirms the political will of the parties to further deepen economic and business relations between the countries.

The establishment of the Council will increase the volume of mutual investment between the countries. German companies have invested $938 million in Azerbaijan. 94 percent of German investment was directed to the non-oil and gas sector. Azerbaijan’s investment in Germany is $668 million. It is clear that the new agreement will create new opportunities for both the approximately 250 German companies currently operating in Azerbaijan and other potential investors.

More foreign investment means the creation of more jobs, along with the transfer of new technologies. In this regard, the establishment of the new Council can also make a special contribution to employment. The use of more innovative approaches in the labor market is among the main goals of the new era and the Employment Strategy.

It is expected that transport corridors between Azerbaijan and Germany will be expanded and cooperation in the field of international freight transportation will also be strengthened. This cooperation will not only increase Azerbaijan’s foreign exchange earnings, but also further strengthen its geopolitical position.

The signing of the “Joint Declaration on the Strategic Agenda for Bilateral Partnership between the Republic of Azerbaijan and the Federal Republic of Germany” in Berlin, as well as the establishment of the Azerbaijan-Germany Business Council, indicate that the strategic partnership between the countries has entered a new stage.

Further deepening economic relations with Germany, which has the third largest economy in the world, is considered a priority in foreign trade for Azerbaijan. In particular, starting new cooperation in the non-oil and gas sector is one of the main goals.

So, what products do we buy from Germany and what do we sell to that country?

A fairly large number of trade transactions are carried out between Germany and Azerbaijan, with a trade turnover of 1 billion 376 million dollars, under 2355 product codes. This indicates diversification in trade turnover, especially in imports.

As for the main products we import from Germany, gold, strips or ribbons ($95.859 million), passenger cars, vehicles with an engine capacity of 1500-3000 cubic cm ($48.413 million), trucks ($39.840 million), pharmaceuticals put up in forms or packages for retail sale ($36.691 million), vehicles propelled by an electric motor ($34.443 million), lubricating oils ($27.903 million), tractors ($18.169 million), passenger cars, vehicles with an engine capacity of over 3000 cubic cm ($16.773 million), vehicles propelled solely by an electric motor ($15.159 million), other trailers and semi-trailers for the transport of goods ($13.962 million), passenger cars, vehicles with an engine capacity of 1500-2500 cubic cm ($11,860 million), parts of gas, energy, liquid meters ($9,209 million), equipment for the distribution of electric current with a voltage not exceeding 1000 V ($7,703 million), medical examination apparatus and devices ($7,435 million), postage stamps, state duty stamps, stamped papers, checkbooks, excise stamps, banknotes ($6,851 million), products used for animal feed ($6,215 million), sugar syrups containing flavoring or coloring additives ($5,523 million), personal deodorants and antiperspirants ($4,581 million) and other products are imported.

 Energy products have a large share in Azerbaijan’s exports to Germany. Thus, in 2025, Azerbaijan exported crude oil and petroleum products worth $502 million to Germany. In addition, last year, shelled hazelnuts ($40.403 million), seamless pump-compressor pipes for drilling oil and gas wells made of ferrous metals ($967 thousand), kerosene fuel for jet engines ($477 thousand) and a number of other products also entered the German market.

The meetings hold during the official visit of the President of Azerbaijan to Germany are expected to affect not only the volume of trade turnover, but also its structure. One of the main goals is to export more non-oil and gas products to Germany.