Italy and Azerbaijan are broadening their longstanding bilateral partnership beyond energy, focusing on critical raw materials, artificial intelligence (AI), robotics, and digital infrastructure. The collaboration aims to strengthen Europe’s strategic autonomy by diversifying supply chains and expanding industrial cooperation amid evolving geopolitical and economic challenges.
The Meloni government considers Azerbaijan a key partner in its “Global Mediterranean” strategy, which seeks to strengthen Italy’s position along emerging trade routes connecting the Caucasus and the Mediterranean.
New Agreements and Growing Trade
The Italy and Azerbaijan parnership gained momentum during an event organized by Confindustria in collaboration with Italian and Azerbaijani ministries. Azerbaijani Economy Minister Mikayil Jabbarov visited Rome to advance bilateral agreements ahead of the upcoming Italy-Azerbaijan Business Forum in Baku.
Bilateral trade reached €8 billion in 2025, with Italy serving as the primary destination for Azerbaijani exports. Italian exports to Azerbaijan totalled €432 million during the same year, while economic analysts estimate that bilateral trade holds more than €110 million in additional growth potential.
Beyond Energy: Critical Raw Materials and Technology
Energy remains central to the relationship. The Trans Adriatic Pipeline (TAP) delivered nearly 48 billion cubic meters of gas to Italy between 2021 and 2025. However, both countries are now seeking to diversify their cooperation through emerging technologies and strategic industrial investments.
A new joint declaration on critical raw materials aims to combine Italian technological expertise with Azerbaijan’s mineral resources. Cooperation will cover extraction, processing, and recycling, supporting more resilient supply chains for European industries.
Italian Minister of Enterprises Adolfo Urso also identified Azerbaijan as a potential partner in a proposed European pilot facility for strategic raw material storage in Porto Marghera, Venice. The initiative could help protect industries against supply disruptions and fluctuations in global markets.
Expanding High-Tech Industrial Cooperation
The partnership also encompasses AI applications in manufacturing, advanced robotics, digital infrastructure, metallurgy, and mining. These sectors offer opportunities for joint innovation, technology transfer, and industrial modernization.
Financial instruments, including the National Made in Italy Fund, could further support investments in joint supply chains and strengthen commercial links between businesses in both countries.
By expanding cooperation beyond traditional energy ties, Italy and Azerbaijan are positioning their partnership to address Europe’s evolving industrial priorities, technological ambitions, and strategic resource requirements.
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