Express analysis
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BAKU, 2026 — Azerbaijan’s environmental and ESG agenda gained greater practical importance in the first quarter of 2026, moving beyond climate diplomacy to become a factor shaping the country’s investment profile, according to official data and analyst estimates.
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President Ilham Aliyev has ordered the expansion of the Alat Free Economic Zone, allocating 1,453.09 hectares of state-owned land for permanent and free use, underscoring Azerbaijan’s drive to accelerate economic diversification and strengthen its position in regional logistics.
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On the eastern edge of the Black Sea, far from Brussels yet increasingly central to its concerns, the Kulevi oil terminal has emerged as an unlikely focal point in Europe’s evolving sanctions architecture. Operated by SOCAR and located on Georgian territory, the facility sits at the intersection of geography, geopolitics and energy logistics—three forces that have become inseparable since the reshaping of global oil flows following sanctions on Russia.
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European Union has included a reference to Azerbaijan in the explanatory materials to its 20th package of sanctions against Russia, reads the documents published on Thursday.
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