TASHKENT — Uzbekistan and Azerbaijan have formally cemented their diplomatic and economic ties by signing a Treaty on Eternal Friendship, setting an ambitious target to increase bilateral trade to $1 billion (€856 million) by the year 2030. The landmark agreement was signed on Sunday during a two-day state visit to Tashkent by Azerbaijani President Ilham Aliyev, who held extensive talks with his Uzbek counterpart, President Shavkat Mirziyoyev.
The state visit featured one-on-one discussions between the two leaders, as well as their joint chairmanship of the third meeting of the Supreme Interstate Council. Established in 2023, the presidential-level council serves as the primary body coordinating long-term bilateral cooperation. This diplomatic push follows a previous upgrade in relations in 2024, when the nations signed a Treaty on Allied Relations. Speaking to reporters after the meetings, President Mirziyoyev warmly characterized Azerbaijan as "our reliable ally, strategic partner and brotherly state."
Economic cooperation between the two countries has experienced rapid growth. In an interview with Uzbekistan's state news agency UzA prior to his arrival in Tashkent, President Aliyev revealed that bilateral trade reached $795 million (€680 million) in 2025, representing more than a threefold increase compared to the previous year. This upward trajectory has continued into 2026, with trade between January and May hitting $144 million (€123 million), a 33% increase year-on-year. To support joint initiatives, the two governments previously established the Azerbaijan-Uzbekistan Investment Company in 2023, backed by $500 million (€428 million) in capital.
During the visit, the presidents inaugurated or initiated several Azerbaijani-backed projects in Uzbekistan. These ventures span multiple sectors, including banking, construction, education, fuel retail, tourism, housing, mining, and agriculture. Specific undertakings include a new gypsum plant, two STEAM schools, five planned SOCAR-branded filling stations, and a processing facility for silver-bearing ore. President Mirziyoyev noted that these projects form part of a broader investment portfolio that also covers energy, geology, chemicals, and finance. Additionally, Azerbaijan's state-owned bank ABB is currently in negotiations to acquire a 51% stake in Uzbekistan's Davr Bank.
In the energy sector, President Aliyev announced that bilateral oil and gas exploration projects are nearing their final stages. If the exploration yields positive results, the drilling of production wells could begin as early as next year. The largest disclosed commercial venture is Sea Breeze Uzbekistan, a year-round residential and tourism development planned by Azerbaijan's Agalarov Development at the Charvak reservoir in the Bostanlyk district of the Tashkent region. Uzbek government figures estimate the planned investment for the 577-hectare project at $5 billion (€4.28 billion). Following a public environmental impact assessment hearing in January, Uzbek authorities confirmed that wastewater from the project will be transported outside the reservoir’s coastal zone to dedicated treatment facilities.
Transport and logistics connectivity emerged as another major focus of the talks, with President Aliyev describing Central Asia and Azerbaijan as "a single geopolitical and geo-economic region." Both leaders committed to strengthening the Middle Corridor, aiming to upgrade logistics infrastructure and boost freight volumes along the trans-Caspian network that connects Central Asia with the South Caucasus and Europe. President Mirziyoyev also announced plans to accelerate efforts toward establishing a joint shipping fleet on the Caspian Sea.
According to figures provided by Aliyev, transit freight between the two countries reached 1.4 million tonnes in 2025, and grew by 12.2% year-on-year to 675,000 tonnes in the first half of 2026. He highlighted that the China-Kyrgyzstan-Uzbekistan railway, currently under development, could eventually link up with the Middle Corridor and other routes crossing the South Caucasus. This network aligns with the European Union's Global Gateway strategy, which aims to reduce transit times between Europe and Central Asia to 15 days or less. In 2024, European and international partners pledged €10 billion in transport investments for Central Asia, and in June, the European Commission signed agreements expected to mobilize up to €2 billion for connectivity projects in the Black Sea and South Caucasus regions.
Energy connectivity may also bridge the Caspian Sea. Azerbaijan, Uzbekistan, and Kazakhstan are actively developing a green-energy corridor to link their national power grids, exploring the feasibility of transmitting renewable electricity across the Caspian Sea to Azerbaijan and potentially onward to European markets.
Beyond commerce and infrastructure, the two sides signed agreements covering pensions, culture, tourism, and direct cooperation between their respective foreign and justice ministries. They also established city-to-city partnerships, pairing Urgench with Khankendi and Nakhchivan, and Bukhara with Lachin. The deepening relationship comes ahead of the 2027 FIFA U-20 World Cup, which the two nations will jointly host following a 2025 FIFA Council decision. President Mirziyoyev announced a joint preparation programme for the tournament under the banner "Two countries – one championship."
The leaders also marked several cultural and educational milestones, including the inauguration of the new 40-hectare campus of the Nizami National Pedagogical University in New Tashkent, designed to accommodate 20,000 students. Additionally, they launched work on a four-hectare Azerbaijan Park in New Tashkent, which will mirror a planned Uzbekistan Park in Baku. To conclude the high-level visit, the presidents exchanged their countries' highest state honors: President Aliyev was presented with Uzbekistan’s Order of Oliy Darajali Dustlik, while President Mirziyoyev was awarded Azerbaijan’s Heydar Aliyev Order.
