"The recent diplomatic progress achieved between Azerbaijan and Armenia has strengthened regional stability and opened up new opportunities for economic cooperation," APA-Economics reports, citing international insurer and asset management group Allianz Group.
However, it was noted that despite ongoing international mediation efforts, a comprehensive peace agreement has not yet been reached.
Allianz Group stated that despite formal allied relations and a shared Soviet past, Azerbaijan balances its ties with Russia by developing relations with the West.
It was emphasized that relations between Azerbaijan and the United States have significantly improved amid official Washington’s mediation of initiatives that could contribute to a broader peace agreement between Baku and Yerevan. At the same time, Azerbaijan continues to deepen its energy cooperation with the European Union, advance regional connectivity projects with Türkiye, and strengthen ties with other regional partners. Nevertheless, the South Caucasus as a whole remains vulnerable to geopolitical shocks.
Allianz added that internal governance reforms are continuing in Azerbaijan, while noting that certain challenges remain in the implementation process.
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