Azerbaijan-Hungary relations: A model based on energy, strategic partnership
Editor's note: Faig Mahmudov is an Azerbaijan-based journalist. The article expresses the author's personal opinion and may not coincide with the view of News.Az.
Relations between Azerbaijan and Hungary have evolved over recent decades on the foundation of friendship and mutual understanding, reaching the level of a strategic partnership today. Bilateral ties have entered a new phase in areas such as energy security, transport and logistics, economic cooperation, cultural integration, and regional stability.
The official visit of President Ilham Aliyev to Budapest in May 2025 and his meeting with Hungarian Prime Minister Viktor Orban once again reinforced the political and economic foundations of these relations. Additional facts from open sources demonstrate how deep and multifaceted this partnership truly is.
Source: AzerTAG
Energy cooperation is the cornerstone of the strategic partnership between Hungary and Azerbaijan. Against the backdrop of the European Union’s energy security challenges, Azerbaijan has emerged as a key alternative source of natural gas. In the summer of 2024, Hungary’s state energy company MVM acquired a 5% stake in Azerbaijan’s Shah Deniz gas field and a 4% stake in the South Caucasus Pipeline project. These investments are strategically important for Hungary in diversifying its energy supply and reducing dependence on Russia.
During his speech in Budapest, President Ilham Aliyev stated that Azerbaijan is ready to fully meet Hungary’s annual gas demand. Since 2023, Azerbaijan has been exporting natural gas to Hungary, and agreements have been reached to increase volumes. Azerbaijan currently exports natural gas to 12 countries, 10 of which are European, and 8 are EU member states—reinforcing Azerbaijan’s role as a Pan-European gas supplier.
According to the 2022 agreement signed between Baku, Tbilisi, Bucharest, and Budapest, Azerbaijan plans to export renewable electricity to Europe via the Caspian Sea. To this end, a four-party consortium was established in 2024 to work on constructing the Green Energy Corridor. This project will enable the transfer of wind and solar energy from Azerbaijan’s Karakhana and Absheron regions to Europe. According to President Aliyev, Azerbaijan will generate 6,000 megawatts of green energy in the next five years, saving approximately 3-4 billion cubic meters of natural gas.
Source: IEEE Spectrum
These projects also strengthen Azerbaijan’s strategic position in the East-West Transport Corridor. Through this corridor, Azerbaijan plays a crucial role in the transit of goods from Asia to Europe, and Hungary’s engagement in this corridor expands logistics cooperation between the two countries.
Economic relations between Azerbaijan and Hungary are also on an upward trajectory. In the first four months of 2025, trade turnover between the two countries increased by 12% year-on-year, reaching $15 million. Hungary has invested over $1 billion in Azerbaijan’s economy, primarily in energy and engineering sectors. Future plans include the refining of Azerbaijani oil in Hungary and joint exports of petroleum products.
Hungary has participated in the Organization of Turkic States (OTS) as an observer since 2018 and plays an active role in this platform. The informal summit held in Budapest in May 2025 marked another significant step in Hungary’s integration with the Turkic world. The first informal summit was hosted by Azerbaijan in Shusha in 2023, and Hungary’s continuation of this tradition underscores the importance placed on shared cultural and historical ties.
Source: turkicstates
Within the framework of its “Opening to the East” policy, Hungary’s strengthening of ties with Azerbaijan has made Baku one of its key partners not only in the energy sector but also in cultural and political cooperation. The Orban government's policy of integration with the Turkic world enjoys broad support within Hungarian society.
Azerbaijan and Hungary not only share economic interests but also hold common positions on promoting regional stability and peace. Prime Minister Orban’s support for the Armenia-Azerbaijan peace agreement process highlights Hungary’s constructive role in the South Caucasus. During his visit, President Aliyev noted that Armenia has already accepted the main provisions of the peace treaty proposed by Azerbaijan, although some constitutional changes and issues related to the OSCE Minsk Group remain unresolved.
Today, Azerbaijan-Hungary relations represent a rare model of strategic cooperation in Europe, built on mutual trust, national interests, and shared benefits. This expanding partnership in energy security, green energy, economic investment, cultural proximity, and peace diplomacy can also serve as a bridge between the European Union and the Organization of Turkic States. This cooperation carries strategic importance not only for the two nations but also for broader regional stability and development.
(If you possess specialized knowledge and wish to contribute, please reach out to us at opinions@news.az).
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