EU's Energy Challenge: Navigating Azerbaijan's Gas Export Strategy

Azerbaijan's President Ilham Aliyev urges the European Union to reassess its financing and policy on long-term contracts concerning natural gas imports. Without this, Baku might seek other markets, raising concerns for EU's energy security as it diversifies post-Ukraine war.

Azerbaijan's President Ilham Aliyev has called on the European Union to re-evaluate its approach to financing and policy concerning long-term natural gas contracts. Speaking on Wednesday, Aliyev highlighted Baku's willingness to explore alternative markets should the EU fail to accommodate.

Aliyev pointed out the European Investment Bank's restrictions on new fossil fuel financing and the lack of long-term contracts as significant barriers. 'The EU market remains premium,' he stated, 'but we shouldn't solely focus westward. The future of Azerbaijan's gas industry and Europe's energy security could depend on it.'

Despite the EU increasing its gas imports from Azerbaijan since cutting Russian imports after the Ukraine conflict, Aliyev's remarks hint at potential hurdles. The Azeri leader urged a return to the previous infrastructure financing model critical for ongoing energy projects, emphasizing the Southern Gas Corridor network's expansion.

(With inputs from agencies.)