Expert Opinion cdr

participating state in international and regional transport networks, with 
rail, road, and sea transportation capabilities. If the Zangezuri Corridor 
is developed, Georgia may lose some of its land cargo, but not in such a 
way that its regional transit potential will be called into question. In the 
medium term, it is necessary to increase demand for Georgian Corridor 
and to establish it as a competitive passageway.
The South Caucasus region and its potential were discussed at the 2023 
Davos Economic Forum, which was held from January 16 to 20. President of 
Azerbaijan Ilham Aliyev emphasized the importance of the “joint tripartite 
format” of cooperation between Georgia, Azerbaijan and Armenia. He 
noted the importance of creating the necessary conditions for the ever-
increasing cargo turnover. He also focused on the need to load the Baku-
Tbilisi-Kars railway and the Baku-Supsa pipeline, use new routes, and, 
accordingly, establish closer trade ties with Europe. The importance of 
the Georgian ports and their full-capacity operation was also emphasized 
(President Administration of Azerbaijan, 2023). According to Aliyev, by 
2027, Azerbaijan intends to export almost 20 billion cubic meters of gas 
to Europe, on a route that passes through Georgia. This agreement was 
signed in July last year by the President of Azerbaijan Ilham Aliyev and 
the President of the European Commission, Ursula von der Leyen, which 
envisages the doubling of Azerbaijani gas exports to Europe by 2027 
(European Commission, 2022). Azerbaijan also plans to export electricity 
to Europe.
The Azerbaijan-Georgia transit corridor is becoming a crucial issue for China 
and the Central Asian states. China has actively started bypassing Russia on 
the Trans-Caspian route by focusing more on the “Middle Corridor”. The 
demand for the South Caucasus Corridor is also seen to be growing from 
the Central Asian countries. Kazakhstan considers the Baku-Tbilisi-Ceyhan 
pipeline to be one of the best ways to transport crude oil to Europe, and 

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aims to transport oil to Baku by tanker, after which it will be loaded into 
the pipeline. Turkmenistan exports its energy resources to Europe in the 
same way. There is also active discussion on the loading of the Baku-Supsa 
pipeline. After the Russian invasion of Ukraine, the Baku-Supsa pipeline 
was stopped, with the security and safety issues of oil tankers in the Black 
Sea very much in mind.
In 2022, Georgia transited 19.7 billion cubic meters of gas, which is a 
record-high for the country. Compared to 2021, the increase is 19%, and 
compared to 2020 - 77%. In oil transit, last year the country transported 
29.8 million tons of oil, an increase of almost 13% compared to 2021 
(Georgian Oil and Gas Corporation, 2022). The growing statistics give us a 
reason to assume that the demand for the Georgian corridor will increase 
even more, both in terms of energy resources and in terms of the required 
ground transportation.
As part of the “Belt and Road Initiative,” a trade route through the South 
Caucasus is planned, the so-called “New Eurasian Land Bridge”, connecting 
China and Eastern Europe through Azerbaijan and Georgia. The countries 
of the South Caucasus support the initiative, seeing it playing an important 
role in economic, social, and infrastructural development, as well as 
political stability in the region. In 2015, all three South Caucasus countries 
signed the “Belt and Road” Memorandum with the Chinese government. 
The same year, Georgia and Azerbaijan became co-sponsors of the “Asian 
Infrastructure Investment Bank”, joined by Armenia in 2017 (Aliyeva, 2022). 
In terms of such cooperation, prospects for the South Caucasus region 
appear quite hopeful, first of all determined by the geographical location, 
then by the transport availability - with both railway and sea access. It 
can also claim a favorable investment business environment. In addition, 
China’s friendly partnership relations with these countries is important. 
China’s rapid economic development, financial capital, and technologies 
must reflect on the Caucasian countries, giving them the opportunity to 
also benefit. Thus, cooperation between Georgia, Armenia and Azerbaijan 
is critically important for each side, as, ultimately, this process contributes 
to the sustainable economic development and stability of the region.

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