Moody’s: Armenia-Azerbaijan détente shows results
The easing of tensions between Armenia and Azerbaijan is beginning to produce tangible economic results, according to a new update from international ratings agency Moody’s.
Since December, Azerbaijan has delivered three shipments of petroleum products to Armenia via Georgia, marking the start of direct trade between the two countries after decades of economic isolation. Moody’s notes that negotiations on expanded oil and petroleum trade are ongoing and, if finalized, could significantly reduce Armenia’s dependence on Russian fuel while reshaping regional energy dynamics, News.Az reports, citing Report.
The agency highlights that progress followed an agreement on the terms of a peace treaty reached in March, which led to more frequent diplomatic engagement between Armenian and Azerbaijani leaders. A key milestone was a US-brokered joint declaration in August committing both sides to mutual recognition, renunciation of territorial claims, accelerated border delimitation, and the reopening of transportation routes.
Moody’s reports that border restrictions for cargo transit were lifted in October. Shortly afterward, a train carrying 1,000 tonnes of Kazakh wheat passed through Azerbaijan to Armenia — the first such transit in decades — signaling the revival of regional trade connectivity.
Further developments followed in January, when the United States and Armenia formalized a framework for implementing the Trump Route for International Peace and Prosperity (TRIPP). The initiative aims to expand transport links, boost regional trade, and establish new corridors connecting Central Asia and the Caspian region with Europe.
One of the most significant outcomes is the creation of a direct transport link between Azerbaijan and its Nakhchivan Autonomous Republic, a long-standing strategic objective for regional integration.
Moody’s concludes that these steps indicate that the normalization process between Armenia and Azerbaijan is moving beyond diplomacy and beginning to deliver measurable economic and connectivity gains across the South Caucasus.
By Aysel Mammadzada
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