Azerbaijan expands investment and energy ties with Asia and Turkey

Azerbaijan’s State Oil Fund (SOFAZ) has joined five major Asian sovereign and pension investors to launch the China-ASEAN Joint Investment Council. The council was established during the China International Fair for Investment and Trade in Xiamen. Founding members include the China Investment Corporation (CIC), Thailand’s Government Pension Fund, Malaysia’s Khazanah Nasional Berhad and KWAP, and the Indonesia Investment Authority (INA).

SOFAZ’s participation highlights Azerbaijan’s strategic role in the Middle Corridor, a transport route connecting Asia and Europe via the Caspian Sea. The fund aims to facilitate the movement of capital along these trade routes, mirroring the flow of goods.

In a separate development, SOCAR and Turkey’s TPAO are expanding their energy partnership. Discussions in Baku focused on transitioning from traditional oil and gas cooperation toward electricity-oriented projects and new exploration initiatives in Azerbaijan, Turkey, and third countries. This includes maximizing the capacity of existing infrastructure like the Baku-Tbilisi-Ceyhan pipeline and TANAP.