In a move that cements their growing partnership, Uzbekistan and Azerbaijan have signed a Treaty on Eternal Friendship, pledging to raise bilateral trade to $1bn (€856mn) by 2030. The agreement was reached during Azerbaijani President Ilham Aliyev's two-day state visit to Tashkent, where he and Uzbek President Shavkat Mirziyoyev held talks and chaired the third meeting of the Supreme Interstate Council, a body created in 2023 to coordinate long-term cooperation.
The treaty follows the Treaty on Allied Relations signed in 2024, reflecting a rapid deepening of ties between the two nations. Mirziyoyev described Azerbaijan as "our reliable ally, strategic partner and brotherly state," while Aliyev noted that trade had already surged to $795mn (€680mn) in 2025, more than triple the previous year's figure. In the first five months of 2026, trade reached $144mn (€123mn), up 33% year-on-year.
Investment and energy projects
The leaders inaugurated or launched several Azerbaijani-backed projects in Uzbekistan, spanning banking, construction, education, fuel retail, tourism, housing, mining, and agriculture. These include a gypsum plant, two STEAM schools, five planned SOCAR filling stations, and a facility to process silver-bearing ore. Mirziyoyev said these are part of a broader investment portfolio covering energy, geology, chemicals, construction, finance, and agriculture.
In banking, Azerbaijan's state-owned ABB is negotiating to acquire a 51% stake in Uzbekistan's Davr Bank. According to S&P Global, the deal is valued at over $100mn (€86mn) and is subject to regulatory approvals. If completed, it would give the Azerbaijani lender a direct foothold in Uzbekistan's banking market.
On energy, Aliyev said bilateral oil and gas exploration projects are nearing their final stage, with drilling of production wells potentially starting next year if results are positive. The two countries are also exploring a green-energy corridor to connect their power systems and transmit renewable electricity across the Caspian, potentially onward to European markets.
The largest disclosed project is Sea Breeze Uzbekistan, a planned year-round tourism and residential development by Azerbaijan's Agalarov Development at the Charvak reservoir in the Bostanlyk district of Tashkent region. Uzbek government figures put planned investment in the 577-hectare project at $5bn (€4.28bn). A public environmental impact assessment hearing was held in January, with authorities saying wastewater would be carried outside the reservoir's coastal zone to treatment facilities.
Strengthening the Middle Corridor
Both leaders agreed to enhance connectivity through the Middle Corridor, focusing on improving logistics infrastructure and increasing freight traffic along the trans-Caspian network linking Central Asia with the South Caucasus and Europe. Mirziyoyev announced plans to create a joint fleet on the Caspian Sea. Transit freight between Uzbekistan and Azerbaijan reached 1.4 million tonnes in 2025, and in the first half of 2026 volumes rose 12.2% year-on-year to 675,000 tonnes, according to figures Aliyev gave to Uzbekistan's state news agency UzA.
Aliyev also noted that the China-Kyrgyzstan-Uzbekistan railway, now under development, could eventually connect with the Middle Corridor and other routes through the South Caucasus. The European Union is backing the trans-Caspian network through its Global Gateway strategy, aiming to connect Europe and Central Asia in 15 days or less. In 2024, European and international partners announced €10bn in ongoing and planned transport investment commitments in Central Asia. In June, the European Commission signed agreements with international financial institutions expected to mobilise up to €2bn for connectivity projects in the Black Sea region and South Caucasus.
Energy could provide another cross-Caspian link. Azerbaijan, Kazakhstan, and Uzbekistan are developing a green-energy corridor to connect their power systems and explore transmitting renewable electricity across the Caspian to Azerbaijan and potentially onwards to European markets.
Cultural and sporting ties
The two sides also signed agreements on pensions, culture, and tourism, as well as cooperation between their foreign and justice ministries. City-to-city partnerships will pair Urgench with both Khankendi and Nakhchivan, and Bukhara with Lachin.
In a notable sporting development, Uzbekistan and Azerbaijan will jointly host the FIFA U-20 World Cup in 2027, following a FIFA Council decision in 2025. Mirziyoyev announced a joint programme dubbed "Two countries – one championship" as part of preparations for the tournament.
The deepening alliance reflects a broader trend of Central Asian and South Caucasus countries seeking to diversify their international partnerships. For Europe, the strengthening of the Middle Corridor offers an alternative trade route that could reduce reliance on traditional chokepoints. As Uzbekistan's economic reforms continue, its ties with Azerbaijan are likely to play an increasingly important role in regional integration.
