Thursday, 10 April 2025

Azerbaijan's Inclusion in the Abraham Accords will Transform the Commercial Architecture of Eurasia's Southern Rim Featured

Published in Analytical Articles

By Michael Tanchum

The Eastern Mediterranean and the Black Sea are one natural waterway forming the core of a multi-modal connectivity arc that can serve as the transportation backbone of a commercial corridor spanning the Middle East and Central Asia. Azerbaijan’s inclusion in a wider Abraham Accords framework could radically reconfigure trade patterns and manufacturing value chains across the southern rim of Eurasia, to the benefit of U.S. strategic interests and those of its partners. While strengthening U.S.-Israel-Azerbaijan trilateral defense cooperation is a response to the looming prospect of a military showdown with Iran, the geo-economic significance of Azerbaijan’s inclusion in the Abraham Accords is of long-term strategic consequence. With the ports on Israel’s Eastern Mediterraneancoast and Azerbaijan’s Caspian Sea coast serving as anchor points, the India-Middle East-Europe Corridor can be linked to the Trans-Caspian International Transport Route, creating an crescent of commercial cooperation from India to the Central Asian Republics via the UAE, Saudi Arabia, Jordan, Israel, Georgia, and Azerbaijan, providing counterweight to the westward expansion of Chinese economic hegemony across the Central Asia-Caucasus region and the Middle East.

Screenshot 2025-04-10 at 1.42.40 PM

Photo source: Michael Tanchum

BACKGROUND: In early March 2025, the office of Israeli Prime Minister Binyamin Netanyahu made public that it favors elevating the trilateral partnership between Israel, Azerbaijan and the U.S.. Following a motion in the Israeli Knesset on "Upgrading the Strategic Alliance between Israel and Azerbaijan," a flurry of calls arose for Azerbaijan’s inclusion in the Abraham Accords. The September 15, 2020, agreement normalized relations between the United Arab Emirates (UAE) and Israel, followed by the establishment of relations between Israel and Bahrain and Sudan, respectively, and the restoration of relations with Morocco. The Abraham Accords also consists of an expanded framework of strategic and economic initiatives among the participants, developed in partnership with the U.S.

Azerbaijan and Israel have enjoyed an all-weather strategic relationship since diplomatic relations were established in the early 1990s following Azerbaijan’s independence. The two states have developed deep defense cooperation over the past 30 years, based on countering the threat Iran poses to both Israel and Azerbaijan, which shares a 428-mile (689 km) border with the Islamic Republic. Key proponents of extending the Abraham Accords to Azerbaijan have emphasized the Azerbaijani-Israeli defense relationship’s durability and Azerbaijan’s reliability as a principal oil supplier to Israel. Azerbaijan and Israel enjoy commercial cooperation in telecoms and other technology sectors. The State Oil Company of Azerbaijan (SOCAR) recently established the new subsidiary “SOCAR Tamar” following its March 17, 2025 acquisition of a 10 percent stake in Israel’s Tamar offshore natural gas field in the Eastern Mediterranean. Azerbaijan has also played an important mediating role between Baku’s close partner Turkey and Israel during times of tension.

Netanyahu’s public commitment to strengthen Israel’s trilateral relationship with Azerbaijan and the U.S was preceded by a collection of letters sent to U.S. President Donald Trump at the end of February by prominent rabbis advocating Azerbaijan’s inclusion in the Abraham Accords. Among them was a senior rabbi in the UAE and personal friend of Trump’s son-in-law Jared Kushner, who played a key role in the signing of the Abraham Accords. Additionally, opinion pieces from Israeli and American policy communities, including in the Wall Street Journal, added further political momentum amidst escalating tensions between Washington and Tehran over Iran’s nuclear weapons program. Two days after Iran’s Supreme Leader Ayatollah Ali Khamenei’s March 12, 2025, rejection of the U.S. proposal to hold negotiations about Tehran’s nuclear weapons program, Trump’s special envoy to the Middle East Steve Witkoff visited Baku after an overnight visit to Moscow, in what appears to be a coordinated effort to prepare for possible military action against Iran by Israel or the U.S., following the exhaustion of diplomatic efforts.

IMPLICATIONSBeyond defense cooperation, a compelling strategic and geo-economic logic exists to include Azerbaijan in a wider Abraham Accords framework, building upon the Azerbaijan’s parallel and separate bilateral economic relations with Israel and the UAE. Extending the Abraham Accords framework outside the Arab World has precedence in the quadrilateral cooperation among India, Israel, the UAE, and the U.S. – the “I2U2” framework – emerging from India’s robust yet parallel commercial cooperation and joint venture investments with Israel and the UAE. Trilateral cooperation emerged organically from the synergies between India’s commercial ventures with Israel and the UAE, traditionally India’s third-largest trading partner and Arabian Sea neighbor.

In February 2022, the UAE signed a Comprehensive Economic Partnership Agreement (CEPA) with India followed by the May 2022 signing of a similar UAE-Israel free trade agreement. The two trade agreements paved the way for initiating three-way coordination in developing an India-Middle East Corridor. Quadrilateral cooperation involving the U.S. was then formalized with the July 2022 I2U2 summit.

The extended Abraham Accords cooperation gave rise to a vision of an India-to-Europe commercial corridor in which the UAE’s ports serve as the Indian Ocean connectivity node with Israel’s Eastern Mediterranean ports serving as the maritime outlet to Europe, connected by a UAE-to-Israel railway network transiting Saudi Arabia and Jordan. Once the transportation route is operational, Indian goods leaving Mumbai could arrive on the European mainland in as little as 10 days. An initiative to realize this corridor, now known as the India-Middle East-Europe Corridor (IMEC) was formalized with the signing of the September 9, 2023, Memorandum of Understanding at the New Delhi G20 Summit, with India, the U.S., the UAE, Saudi Arabia, France, Germany, Italy, and the EU as signatories.

Research has shown that commercial corridors only emerge where the requisite large investments in port and rail infrastructure are coupled with an industrial base anchored in manufacturing value chains. The IMEC is highly conducive for value chain integration because of the existing synergies between India’s commercial ventures with its Arab Gulf partners and its commercial ventures with Israel, as exemplified by the manufacturing value chain in food production that is one of the leading drivers of the IMEC’s development. India’s “Food Corridor to the Middle East” is driven by India’s investment partnerships with the UAE and Saudi Arabia that rely on the transformation of India’s agriculture and water management sectors being implemented through India’s partnership with Israel. Similar synergies exist in other sectors, with the most promising in green energy and innovative technology, which has already lead to joint venture production facilities in green manufacturing.

The inclusion of Azerbaijan, along with Georgia, in the wider Abraham Accords framework holds a similar potential to create a new trans-regional commercial architecture. The UAE is Azerbaijan’s top Arab trading partner, accounting for 40 percent of Azerbaijan’s trade with the Arab World. The UAE is also the largest Arab investor in Azerbaijan and one of the top 10 global investors in Azerbaijan, accounting for 7 percent of Azerbaijan’s FDI inflow. In 2023, the UAE’s Abu Dhabi National Oil Company acquired a 30 percent stake in Azerbaijan’s Absheron natural gas field in the Caspian Sea. Similarly, the UAE is Georgia’s largest trading partner in the Arab world, accounting for 63 percent of Georgia’s trade with the region. Trade is likely to increase further with the UAE-Georgia CEPA, which came into effect in June 2024. The UAE is also invested in solar power plant development in both Azerbaijan and Georgia. Most significantly, in March 2024, the UAE’s AD Ports group, acquired a 60 percent ownership share in the Tbilisi Dry Port, a new custom-bonded and rail-connected intermodal logistics hub in Georgia. At the heart of the Trans-Caspian Route, the port is a key logistics facility for the rail connection linking Georgia’s Black Sea coast and Azerbaijan’s Caspian coast.

Azerbaijan’s Baku port is the connectivity node from where the Wider Black Sea region connects to Central Asia across the Caspian Sea. The Trans-Caspian International Transport Route (TITR) connecting the Caspian and Black Seas via Azerbaijan and Georgia, commonly referred to as the Middle Corridor, was developed as an alternative to the Russia-based Northern Corridor for China-to-Europe trade. The TITR consists of multi-modal transportation links for container transshipment via Kazakhstan’s Caspian port Aktau to the specially constructed port of Baku at Alat from where goods can be shipped by railway connection from Azerbaijan to Georgia’s Black Sea ports and in turn to Israel’s Eastern Mediterranean ports. By linking IMEC and the TITR, India will possess its own multi-modal corridor to access Central Asia, enabling India to effectively compete with China in Eurasia without being reliant on Russia or Iran. IMEC provides India with a streamlined alternative to its 25-year effort to establish the troubled International North-South Transit Corridor (INSTC) to access Central Asia through Iran’s Chabahar port, serving as the Indian Ocean connectivity node with overland transportation links running northward via Iran and Afghanistan.

The multi-modal corridor connecting India to Central Asia would also open the opportunity for Turkey to participate in IMEC. The UAE’s ports and logistics giant DP World operates Turkey’s Yarımca port, reputed to be the most technologically advanced in Turkey. Yarımca’s Marmara coast location is highly suited for intermodal transportation in which cargo can be transshipped to the Black Sea or Georgia and Azerbaijan by rail from Kars via the Baku-Tbilisi-Kars railway.

CONCLUSION: The September 2023 signing of the IMEC declaration was preceded by the July 2022 I2U2 summit, the first convening of the heads of government of India, Israel, the UAE, and the U.S. As a step toward linking IMEC with the Trans-Caspian Corridor, a CC-I2U2 summit should be convened with the heads of Azerbaijan and Georgia participating. The format can be extended to include Central Asian Republics as well as Saudi Arabia and Jordan in anticipation of the extended arc of joint venture manufacturing investments and commercial cooperation.

By including Azerbaijan in a wider Abraham Accords framework, the U.S. can upend the geopolitics of connectivity in Central Asia, halting the westward expansion of Chinese commercial hegemony across the Eurasian landmass. Linking the IMEC corridor to the Caspian shores of Kazakhstan via a multi-modal sea route with trans-shipment across Georgia and Azerbaijan will effectively end India’s isolation from Central Asia – a strategic objective long sought by New Delhi. Consolidating the triangle of bilateral economic relationships among Azerbaijan, Israel, and the UAE into a multilateral framework through U.S. facilitation under the Abraham Accords is a necessary first step and a boon to the U.S. strategic position across Eurasia’s southern rim.

AUTHOR BIO: Prof. Michaël Tanchum teaches international relations of the Middle East and North Africa at the University of Navarra, Spain and an associate fellow in the Economics and Energy at the Middle East Institute in Washington, D.C. He is also a Senior Associate Fellow at the Austrian Institute for European and Security Studies (AIES) and an affiliated scholar of the Centre for Strategic Policy Implementation at Başkent University in Ankara, Turkey (Başkent-SAM) and the NTU-SBF Centre for African Studies in Singapore. @michaeltanchum 

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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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