Tourism market in Azerbaijan remains stable, spending declines

The foreign ministries of Russia and Azerbaijan have announced the full settlement of issues related to the passenger aircraft of AZAL that was shot down over Russian airspace on December 24, 2024, confirming agreements on compensation payments and closing one of the most sensitive episodes in bilateral relations.

Russia appears to be reassessing its role in the transport architecture of the South Caucasus amid a shifting geopolitical landscape that is casting doubt on Western connectivity initiatives and opening space for Moscow’s return to regional projects.

Azerbaijan exported an estimated 6.6–6.8 billion cubic metres (bcm) of natural gas in the first quarter of 2026, maintaining stable supply flows to Europe, Turkey and Georgia, as structural constraints continue to limit further expansion.

The government has approved a standardized framework for contracts governing the use of water resources for special purposes, formalizing relations between the state and private users amid growing pressure on the country’s water reserves.