Azerbaijan Promotes Caucasus Corridors to Link Saudi Logistics With Central Asia

Azerbaijan's ambassador in Riyadh told Asharq Al-Awsat that new agreements are being developed and praised ACWA Power's projects in his country.

Azerbaijan's capital Baku with the city's famous architectural landmarks in the background (X)
Azerbaijan's capital Baku with the city's famous architectural landmarks in the background (X)
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Azerbaijan Promotes Caucasus Corridors to Link Saudi Logistics With Central Asia

Azerbaijan's capital Baku with the city's famous architectural landmarks in the background (X)
Azerbaijan's capital Baku with the city's famous architectural landmarks in the background (X)

As global markets search for logistical lifelines to secure supply chains and energy flows amid ongoing geopolitical disruptions, Azerbaijan is promoting major transport and logistics projects, foremost among them overland freight routes through the Caucasus and across the Caspian Sea, as a strategic safeguard for the future. These initiatives aim to create faster and more efficient shipping links while integrating the Gulf Cooperation Council states, particularly Saudi Arabia's logistics strategy, into a vital connectivity network stretching across the South Caucasus and deep into Central Asia.

Ahead of his country's Independence Day on May 28, Azerbaijan's Ambassador to Saudi Arabia Mutallim Mirzayev told Asharq Al-Awsat that Baku is leveraging its unique position as a strategic bridge to strengthen investment flows and trade, driven by a strong desire to deepen its comprehensive partnership with Riyadh and translate existing understandings into concrete projects on the ground. These include nearly 30 official agreements and important contracts covering the economy, trade, investment, and agriculture, in addition to a proposed joint investment fund. Mirzayev stressed that Azerbaijan is "uniquely positioned as a strategic bridge connecting Central Asia, the South Caucasus, and the Gulf region."

These logistics ambitions come at a time when Saudi-Azerbaijani relations are experiencing a peak in investment activity, with the two countries pursuing major strategic partnerships in both conventional and renewable energy sectors. In this regard, the ambassador praised the leading role played by Saudi companies in Azerbaijan, particularly ACWA Power, which he described as a vital partner driving the country's green energy transition, water management projects, and sustainable infrastructure development. He noted that cooperation is expanding rapidly, reflecting the peak level of investment activity between the two nations.

A key example is the Khizi-Absheron Wind Power Plant, officially inaugurated by Saudi Arabia's ACWA Power earlier this year. The project has a generation capacity of 240 megawatts and an investment value of $300 million. It is the first and largest fully foreign-funded renewable energy project in Azerbaijan and is expected to contribute significantly to the country's energy security.

In conventional energy, Saudi investments also maintain a significant presence through the participation of companies affiliated with the Kingdom's sovereign and development institutions in strategic oil and gas projects in Azerbaijan. These include contributions to the development of the giant Azeri-Chirag-Gunashli oil field, reinforcing the role of both countries in regional and international energy security.

Mutallim Mirzayev, Azerbaijan's ambassador to Saudi Arabia. (Asharq Al-Awsat)

Urban Momentum and the Joint Fund

Mirzayev praised Saudi Arabia's active, high-level participation in the 13th session of the World Urban Forum (WUF13), hosted recently in Baku. The forum featured leading Saudi initiatives and projects in urban development and sustainable housing, reflecting the growing depth of bilateral coordination.

The Azerbaijani ambassador noted that the forum successfully transformed Baku into a global platform for dialogue on the future of smart cities, modern urban planning, and climate resilience. He said these strategic principles are fully embedded in Azerbaijan's ongoing reconstruction and redevelopment plans, under which entire cities and villages are being rebuilt in the liberated territories.

Trade Momentum and the Joint Fund

Turning to economic cooperation, Mirzayev said efforts are advancing steadily to activate the proposal for a joint investment fund aimed at pooling capital and directing it toward priority sectors and shared economic objectives, including agriculture, food security, tourism, advanced technologies, and infrastructure, as well as strengthening trade in industry and advanced logistics services.

On people-to-people ties, he said tourism has become a key pillar of growth amid increasing visitor flows and growing interest among Saudi tourists in Azerbaijan as a distinctive cultural and tourism destination.

The official inauguration of the Khizi-Absheron Wind Power Plant, developed by ACWA Power, in January 2026. (X)

Vision 2030 and the Organization of Islamic Cooperation

"On the occasion of our Independence Day, I would like to express my sincere appreciation for the friendship, solidarity, and close cooperation between our two countries," Mirzayev said. He also praised the remarkable achievements and transformation witnessed in the Kingdom, noting that "the ambitious reforms and development initiatives implemented within the framework of Saudi Vision 2030 are making significant contributions to sustainable development, economic diversification, regional stability, and prosperity."

He added that Azerbaijan "highly values the Kingdom's principled support for Azerbaijan's sovereignty," while emphasizing that Baku attaches great importance to its relations with Saudi Arabia as one of the leading countries in the region. He reiterated Azerbaijan's future-oriented vision, highlighting the country's ongoing large-scale reconstruction and redevelopment efforts in the liberated territories, where entire cities and villages are being rebuilt in accordance with modern urban planning principles, smart city concepts, green energy, and sustainable development.

In the multilateral arena, Mirzayev revealed that Azerbaijan's upcoming chairmanship of the Organization of Islamic Cooperation summit will focus heavily on strengthening economic cooperation among member states, supporting climate action, science and innovation, youth empowerment, and sustainable development, all in the service of global stability.

He also reiterated that tourism has become an increasingly important pillar of bilateral relations, driven by the growing number of Saudi visitors traveling to Azerbaijan.

A view of Baku illuminated at night. (X)

The Geopolitics of the Middle Corridor and Shipping Alternatives

Azerbaijan's transport and logistics proposals are gaining strategic significance in economic circles. At the center of these plans is the Middle Corridor, officially known as the Trans-Caspian International Transport Route, which serves as a secure land-and-sea alternative connecting China with Central Asia, the Caucasus, Türkiye, and ultimately Europe. The corridor is particularly attractive because it can reduce cargo transit times to approximately 12 to 15 days, bypassing the constraints of traditional maritime shipping and the geopolitical complications associated with northern transport routes.

In the same logistics framework, the planned Zangazur Corridor, which would connect mainland Azerbaijan with the Nakhchivan Autonomous Republic and onward to Türkiye, represents a vital artery for regional economic integration. The corridor would establish direct and rapid road and rail connectivity and intersect with the Middle Corridor, creating an extensive logistics network stretching from the Turkic world and Central Asia to the ambitious transport systems being developed by the Gulf Cooperation Council states.

Shaping the Logistics Map

Regarding regional integration between the Gulf and Central Asia, Mirzayev emphasized that Azerbaijan's strategic location makes it a vital link connecting Central Asia, the South Caucasus, and the Gulf region. This geographical advantage is reinforced by modern transport infrastructure that enables Azerbaijan to facilitate trade, investment, and energy flows between the two regions in the face of global economic challenges.

The ambassador stressed that regional cooperation mechanisms are becoming increasingly important in addressing current global economic and geopolitical challenges, adding that Azerbaijan actively supports all initiatives aimed at strengthening integration, connectivity, and economic partnership between Central Asia and the Gulf region.

In this context, Mirzayev said major transport projects, particularly the Middle Corridor and the Zangazur Corridor, carry exceptional strategic weight for regional transportation, logistics services, international trade, and cross-border economic integration. Their ability to create faster, safer, and more efficient land and rail shipping links connecting Central Asia, the South Caucasus, and Türkiye with the Gulf region can strengthen global supply-chain security and open promising investment opportunities for all parties, including Saudi Arabia's logistics strategy as it seeks to diversify its gateways to the world.



Türkiye Says Iraq Seeks 750,000 Bpd Capacity on Kirkuk-Ceyhan Oil Pipeline

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
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Türkiye Says Iraq Seeks 750,000 Bpd Capacity on Kirkuk-Ceyhan Oil Pipeline

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)

Turkish Energy Minister Alparslan Bayraktar said Iraq wants to send 750,000 barrels per day of oil through the Kirkuk-Ceyhan pipeline under an arrangement to keep it operating for another year, and that Türkiye has set aside sufficient capacity for it.

The current pipeline agreement between Iraq and Türkiye expires this month. The two countries reached an understanding last week to keep it operating for another year and a deal is expected to be signed in the coming days.

The pipeline has regained importance following Iran's closure of ‌the Strait of ‌Hormuz and the resulting halt in Iraq's seaborne oil exports.

Türkiye ‌informed ⁠Iraq last year ⁠that it did not want simply to renew the existing agreement and preferred to negotiate a more comprehensive arrangement.

Exports through the line were halted in 2023 after an international arbitration tribunal awarded damages against Türkiye. Oil flows resumed only around two and a half years later, toward the end of last year.

According to BOTAS data, the pipeline, which has a total capacity of 1.4 million bpd and transported roughly 480,000 bpd before the shutdown, has carried ⁠only about 190,000 bpd since restarting.

"They told us they would need ‌750,000 barrels of capacity. Although only 180,000-200,000 barrels are ‌flowing today, we said that's fine - we can allocate 750,000 barrels to you,” Bayraktar told reporters ‌after a cabinet meeting on Monday.

GOAL OF EXTENDING PIPELINE

Bayraktar said Türkiye wanted to ‌sign a new, more comprehensive agreement within one year, reiterating Ankara's goal of extending the pipeline south from Kirkuk to the Basra Gulf region and increasing its capacity to 2.5 million bpd.

"If Kuwait wants to put its oil into this pipeline, let it do so. If others in ‌the Gulf wish to use it, they could as well," he said.

He added that a natural gas pipeline could be built alongside ⁠an extended oil ⁠line and could transport gas from Qatar or other sources.

Bayraktar also said the $1.5 billion arbitration award against Türkiye forms part of the negotiations over a new pipeline agreement.

In February 2023, an international arbitration tribunal ruled that Türkiye had violated the 1976 pipeline agreement by allowing oil exports from the semi-autonomous Kurdistan region between 2014 and 2018 without the approval of Iraq's central government, ordering Türkiye to pay net compensation of $1.5 billion.

Under the main ruling, Türkiye was ordered to pay Iraq around $2 billion, while Iraq was ordered to pay Türkiye more than $500 million for underpaid transportation fees dating back to the 1990s. Analysts have said Türkiye's net liability could be reduced further once interest calculations are taken into account.

Following the award, Iraq and Türkiye filed cases in Washington, DC relating to enforcement of the ruling and the calculation of interest. Bayraktar said those proceedings remain ongoing.


Gold Recovers from Two-Week Low Ahead of US Inflation Figures

A customer holds a gold chain at a jewellery store in Mumbai, India, January 30, 2026. (Reuters)
A customer holds a gold chain at a jewellery store in Mumbai, India, January 30, 2026. (Reuters)
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Gold Recovers from Two-Week Low Ahead of US Inflation Figures

A customer holds a gold chain at a jewellery store in Mumbai, India, January 30, 2026. (Reuters)
A customer holds a gold chain at a jewellery store in Mumbai, India, January 30, 2026. (Reuters)

Gold rose on Tuesday after hitting a two-week low earlier in the session, as markets awaited key US inflation data, with escalating US-Iran tensions driving oil prices higher and reinforcing expectations of further Federal Reserve rate hikes.

Spot gold was up 0.5% at $4,021.62 per ounce by 0440 GMT, recovering from its lowest level since July ‌1. US gold ‌futures for August delivery gained 0.6% at $4,028.

Gold shed ‌about ⁠3% in the ⁠previous session, its biggest daily percentage decline in more than a month, as continued fighting between the US and Iran drove oil prices to a one-month high.

While gold is often viewed as a hedge against inflation, higher rates tend to weigh on the non-yielding metal by increasing the appeal of interest-bearing assets.

"You ⁠have a situation where the markets probably ‌don't want to commit. They have ‌a big batch of event risks in front of them. There's, of ‌course, the Warsh testimony and then the CPI print, so ‌there's a lot for people to look at in addition to the headlines out of the Middle East," said Ilya Spivak, head of global macro at Tastylive.

Investors will closely watch June US CPI data ‌due later in the day for fresh clues on inflation and the Fed's policy path, ⁠with PPI data ⁠and Fed Chair Kevin Warsh's first semi-annual testimony before Congress this week also in focus.

The US central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the 2% target, Fed Governor Christopher Waller said on Monday.

Traders have ramped up bets on a September US interest rate hike, with CME Group's FedWatch Tool showing the probability rising to around 76% from 57% a week ago.

Elsewhere, spot silver inched 0.1% higher to $57.70 per ounce, having earlier touched a two-week low. Platinum fell 0.1% to $1,603.72 and palladium rose 1.4% to $1,264.61.


China’s June Oil Imports Hit Near 10-Year Low Amid Iran War

Containers are seen at the port in Shanghai on July 14, 2026. (AFP)
Containers are seen at the port in Shanghai on July 14, 2026. (AFP)
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China’s June Oil Imports Hit Near 10-Year Low Amid Iran War

Containers are seen at the port in Shanghai on July 14, 2026. (AFP)
Containers are seen at the port in Shanghai on July 14, 2026. (AFP)

China's June crude imports slumped 41.3% to their lowest in almost a decade as refinery run rates hit a ten-year low due to weak domestic demand and export curbs on refined oil products to safeguard energy security amid the Iran war.

China imported 29.27 million tons of crude oil in June, or 7.12 million barrels per day, the lowest since October 2016, customs data showed on Tuesday.

The slump extended into June from May, with imports falling by another 12%, after oil imports hit an eight-year low ‌in May.

China's seaborne ‌crude imports stood at around 6 ‌million ⁠bpd in June, with ⁠imports from the Middle East hitting their lowest level in ten years and Iranian oil imports also dropping 40% month on month to below 800 thousand barrels per day, according to ship-tracking company Vortexa.

In June, the utilization rate of China's crude distillation units stood at 57.72%, down 3.28 percentage points month on month and down ⁠13.09 percentage points year on year, according to Chinese ‌consultancy Oilchem.

"Refinery run rates were ‌likely near a 10-year low, weighed down by weak domestic demand and ‌refined oil product export restrictions. But if refined product exports ‌are eased, run rates could see a partial rebound," said Emma Li, analyst at Vortexa.

Lower Chinese imports are freeing up oil for other buyers, while the market is also weighing the permanent loss of demand from China, ‌as the steep drop in fuel consumption after oil prices soared suggests China can live on ⁠less oil ⁠due to its massive EV fleet.

Customs data also showed natural gas imports rose 3.7% year on year to 10.9 million tons in June.

However, natural gas imports in the first half of 2026 dropped 3.4% to 57.45 million tons from the same period last year.

The data does not separate LNG from gas piped overland.

China's refined oil product exports stood at 4.36 million tons in June.

In the first six months, China exported 23.59 million tons of refined oil products, down 13.2% year-on-year due to export restrictions imposed in March to safeguard domestic supply amid the Iran war.