What Will BRICS Bring to Azerbaijan?

The BRICS summit begins on October 22 in Kazan and will last for three days, taking place in two stages. The first day is reserved for meetings among BRICS members, while the following two days will include discussions with other participating countries. It has been announced that representatives from 32 countries will attend the event.

Azerbaijan has officially applied for membership in BRICS (an organization named after its founding members: Brazil, Russia, India, China, and South Africa. Egypt, Ethiopia, Iran, and the UAE later joined). Consequently, Azerbaijani President Ilham Aliyev will participate in the summit. Discussions about Azerbaijan's potential membership, along with that of Belarus, Turkey, and Mongolia, in this 18-year-old organization may also take place.

Some Western analysts believe that BRICS was created as an alternative to the political and economic dominance of wealthy countries in North America and Western Europe. The organization's goal is to bring together the most important developing nations. However, according to official statements from BRICS organizers, it is primarily an economic institution.

Azerbaijan's main trading partner is the European Union (EU). According to the State Customs Committee, last year the EU accounted for 64.4% of Azerbaijan's total exports, while BRICS members accounted for just 20%. However, this trend does not apply to imports, where, for example, Russia, one of BRICS' key countries, ranks first in terms of Azerbaijan's imports.

Azerbaijan applied for BRICS membership in early April. Ayxan Hacızade, head of the press service department at the Ministry of Foreign Affairs, explained in an interview with Report that Azerbaijan seeks to join BRICS because it covers over 30% of the world’s land area, 43% of its population, and 26% of global GDP. "Member states possess vast natural resources, large domestic markets, labor reserves, and some members have advanced technological industries," he noted.

Mehmet Yüce, a columnist for Turkey's Sabah newspaper, believes Azerbaijan could serve as BRICS' window to the West.

Mazahir Efendiyev, a member of the Azerbaijani Parliament's Regional Affairs Committee, told Turan that the world is experiencing a period of heightened tension: "The Russia-Ukraine war is seen as a primary cause of global security risks and disruptions to economic chains. At the same time, major powers have significant interests in our region. In this context, Azerbaijan aims to maintain its foreign policy principle of multi-vector diplomacy."

According to the MP, BRICS is a major international platform focused on economic relations, and Azerbaijan plans to participate to benefit from the opportunities it presents.

Natiq Jafarli, chairman of the REAL Party and an economist, offers a different perspective. In an interview with Azadliq Radio, he recalled that Turkey, Azerbaijan's strategic ally, has also reportedly applied for BRICS membership. "Here, Turkey and Azerbaijan act together, and Azerbaijan could serve as a bridge for Turkey's entry into BRICS markets."

However, Jafarli argues that BRICS holds limited significance for Azerbaijan: "The main economic partners and investors for Azerbaijan are Western countries. The majority of our exports and 85% of investments come from the West. Our largest trading partner is Italy. From this point of view, Azerbaijan's membership in BRICS does not promise significant economic gains."

Jafarli also points out that Azerbaijan's non-oil sector is not developed enough to enter BRICS markets. Nonetheless, he believes that since BRICS countries primarily conduct trade via land routes, they may be interested in new logistical routes passing through Azerbaijan, which could bring additional economic dividends to the country.

Regarding the ongoing strategic partnership talks with the EU, which have not yet yielded results since 2017, Jafarli emphasizes that joining the EU is not easy: "An application is enough to join organizations like BRICS, and the process is quite simple. There is no compelling narrative that requires countries to undergo difficult procedures for acceptance. The EU, on the other hand, is a serious organization with its own standards and principles, and meeting them requires significant effort."

According to Jafarli, Azerbaijan is not signing an agreement with the EU due to certain conditions: "These involve joining the World Trade Organization and opening up the country's markets, something the Azerbaijani government does not want."