BILATERAL RELATIONS

BILATERAL RELATIONS

Information on history of bilateral relations

On December 31, 1991 the Kingdom of The Netherlands recognized the independence of the Republic of Azerbaijan; on April 1, 1992 diplomatic relations between two countries was established.

The Embassy of the Republic of Azerbaijan was opened in the Kingdom of the Netherlands in May 2007. On November 18, 2020, Pauline Eyzema, the Ambassador Extraordinary and Plenipotentiary of the Kingdom of the Netherlands to the Republic of Azerbaijan, presented her credentials to Ilham Aliyev, the President of the Republic of Azerbaijan.

A working group on Azerbaijan–Netherlands interparliamentary relations operates within the Milli Majlis (National Assembly) of the Republic of Azerbaijan. The group is chaired by Gaya Mammadov.

Legal base of bilateral relations

11 documents were signed between the Republic of Azerbaijan and the Kingdom of the Netherlands 

1. Agreement between the Government of the Republic of Azerbaijan and the Government of the Kingdom of the Netherlands on air transportation (11 July 1996) 
2. Memorandum of Understanding between the Republic of Azerbaijan and the Kingdom of the Netherlands on cooperation program (24 April 1998) 
3. Agreement between the Government of the Republic of Azerbaijan and the Government of the Kingdom of the Netherlands on mutual administrative assistance for the correct application of customs legislation and customs offenses prevention, investigation and combating with them (30 January 2002) 
4. Memorandum of Understanding on cooperation between the Ministry of Justice of the Republic Azerbaijan and the Ministry of Justice of the Kingdom of the Netherlands (4 February 2002)
5. Memorandum of Understanding between Azerbaijan and Netherlands on the program of economic cooperation (21 February 2002) 
6. Agreement between the Government of the Republic of Azerbaijan and the Government of the Kingdom of the Netherlands on international road transport (25 May 2004) 
7. Convention between the Republic of Azerbaijan and the Kingdom of the Netherlands on avoidance of double taxation with respect to taxes on income and property and prevention of tax evasion (22 September 2008) 
8. Memorandum of Understanding between the State Border Service of the Republic of Azerbaijan and the Repatriation and Departure Service of the Kingdom of the Netherlands on the fight against illegal migration (1 July 2009) 
9. The Memorandum of Understanding between the Ministry of Internal Affairs of the Republic of Azerbaijan and the Ministry of Justice of the Kingdom of the Netherlands in the field of non-operating cooperation (10 August 2010)
10. The Memorandum of Understanding between the Ministry of Emergency Situations of the Republic of Azerbaijan and the Ministry of Infrastructure and Environment of the Kingdom of the Netherlands in the field of water management cooperation (6 November 2014)
11. Memorandum of Understanding for cooperation in the field of statistics between the State Statistical Committee of the Republic of Azerbaijan and Statistics Netherlands (22 January 2020)

Main high level visits and meetings

Economic cooperation

Azerbaijan is the Netherlands' major trading partner in the South Caucasus, with the foreign direct investment in the region exceeding USD 1.7 billion. The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has invested USD 407.2 million in fixed-income securities, capital markets, equities, and mutual funds in the Netherlands. Additionally, 156 Dutch companies are registered in Azerbaijan, with 130 actively operating across various sectors, including industry, construction, agriculture, finance, transport, ecology, and trade and services.

To date, a total of 11 agreements have been signed between Azerbaijan and the Netherlands. Key economic agreements include the Memorandum of Understanding on Economic Cooperation, signed on 21 February 2002. The two countries have also signed agreements across various sectors, including air transport, customs, international road transport, avoidance of double taxation and tax evasion, and water resources management.

Trade and Economic Indicators

In 2023, the total trade turnover between Azerbaijan and the Netherlands reached USD 157.23 million, comprising imports of USD 113.01 million and exports of USD 44.22 million. This reflects a growing trade volume, with the Netherlands being a key partner for Azerbaijan in industrial goods and technology imports, as well as a valuable market for Azerbaijani exports.

In the first half of 2024, trade turnover amounted at USD 116.39 million, with imports of USD 46.67 million and exports of USD 69.82 million. This indicates a strong upward trend in Azerbaijani, particularly in crude oil and fuel products.

Key Imports from the Netherlands: oxyethanol, digital data processing units, gas turbine parts, machines and parts for receiving, adapting, transmitting, or correcting sound, image or other information; pharmaceutical products packaged for retail sale; printers; copiers; and fax machines.

Key Exports from Azerbaijan to the Netherlands: crude oil and fuel products, fruit and vegetables, rusty metal products.

Investments and Business activities

The Netherlands has made investments in Azerbaijan, particularly in non-oil sectors, while Azerbaijan has invested in the Netherlands, focusing on industries such as oil, gas, and real estate.

From 1995 to 2023, Azerbaijan’s investments in the Netherlands totaled USD 493.4 million, with USD 191.6 million directed towards the oil sector and USD 301.8 million towards the non-oil sector. Conversely, Dutch investments in Azerbaijan amounted to USD 1.7 billion, including USD 147.4 million in the oil sector and USD 1.6 billion in non-oil sectors. This underscores the Netherlands’ role as a major investor in Azerbaijan’s economic diversification efforts.

Business Forums and Exhibitions

Business forums have been organized in both countries at various times, including in the Netherlands (Maastricht) in 2015, and in Azerbaijan (Baku) in 2012, 2013 (twice), 2014 and 2016. Additionally, Azerbaijan participated in the international exhibition "Floriade 2012", held in Venlo, Netherlands. Meanwhile, the Netherlands was represented by 22 companies at the "Caspian Agro-2019" exhibition held in Azerbaijan in May 2019.

Areas of cooperation

The Baku International Sea Trade Port (BISTP), a major hub for international trade, benefits from cooperation with Dutch seaports, which serve as critical intermodal distribution centers for cargo traveling between Asia and Europe. In 2019, a cooperation agreement between Baku Port (BBDTL) and the Cabooter Group was signed to promote the delivery of goods through the Middle Corridor via Azerbaijan. Moreover, Royal HaskoningDHV, a Dutch engineering consultancy, has provided design, engineering, and construction services for the development of Baku Port.

On January 17, 2023, President Ilham Aliyev met with Arnout Damen, the executive director of Damen Shipyards Group, during the World Economic Forum in Davos. Discussions focused on enhancing cooperation in Azerbaijan’s shipbuilding industry, particularly in the production of tankers, dry cargo ships, and ferries.

On January 18, 2023, the President of the Republic of Azerbaijan Ilham Aliyev met with the CEO of Signify, within the framework of the World Economic Forum in Davos. The meeting focused on the company’s activities in Azerbaijan, including lighting projects for the TV tower in Shusha and agricultural sector initiatives.

Agriculture is one of the key sectors of cooperation between Azerbaijan and the Netherlands. Dutch expertise in sustainable farming practices, greenhouse technologies, and water management has contributed to the modernization of Azerbaijan’s agricultural sector. Notably, Azerbaijani products such as "Balkhurma", "Minashirin", "Savalan" and "AzGranata" brand goods are exported to the Netherlands, showcasing the expanding role of Azerbaijani agricultural exports.

On July 9, 2024, Azerbaijan's Minister of Agriculture, Mecnun Mammadov, visited the Netherlands and met with Femke Mariye Viersma, the Dutch Minister for Agriculture, Fisheries, Food Safety, and Nature. Their discussions focused on strengthening cooperation in agriculture, fisheries, food safety, and nature conservation.

Economic cooperation between Azerbaijan and the Netherlands continues to thrive, driven by robust trade, investment, and collaborative projects in logistics, agriculture, infrastructure, and shipbuilding. The deepening ties underscore the strategic importance of this relationship, benefiting both nations and contributing to regional stability and development.

COP29

A delegation led by Sophie Hermans, Minister of Climate Policy and Green Development, visited Azerbaijan to participate in the 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), held in Azerbaijan from November 11 to 22, 2024. The delegation included the Netherlands' Special Envoy for Climate, Prince Jaime de Bourbon de Parme; Special Envoy for Water, Meike van Ginneken; Special Envoy for Energy, Frederik Wisselink; and Special Envoy for the Caribbean islands of Bonaire, St. Eustatius, and Saba, Edison Rijna.

On November 18, 2024 during the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), Bank Respublika, and the Dutch Development Bank (FMO) signed a significant loan agreement to finance green projects in Azerbaijan. According to the agreement, the international financial institution will provide the Bank with a loan in Azerbaijani manats (AZN), equivalent to USD 40 million for a term of four years. This funding will support Azerbaijan's goal of reducing greenhouse gas emissions by 40% by 2035.

Other fields of bilateral cooperation

Clingendael - the Netherlands Institute of International Relations organizes the annual training course for Eastern Partnership countries’ diplomats. There is cooperation between the Clingendael Academy and the Azerbaijan Diplomatic Academy.

In order to discuss problems of diaspora, key issues of agenda and coordinate activities the Embassy regularly organizes numerous meetings, debates, exchange of views, round tables with the heads and representatives of the leading diaspora organizations - Benelux Azerbaijanis Congress, the Azerbaijani-Turkish Cultural Association, "Motherland" Union of Azerbaijani Women of the Netherlands and others as well as with representatives of Dutch community Netherlands-Azerbaijani Communication Platform – NACP and Dutch Friends of Azerbaijan created by Dutch society.

Since 16^th of December 2013 with the aim to promote Azerbaijani language and literature with support of the Embassy the school named after Nizami Ganjavi was opened and started its activity under coordination of "Motherland" Union of Azerbaijani Women of the Netherlands. Besides the Azerbaijani language and literature students gain knowledge on ancient history of our country, rich culture and so on. In order to keep classes on needed level the Embassy provides the school with textbooks and manuals.