BAKU, Azerbaijan, May 1. Azerbaijan has secured a major financial boost from the United Kingdom, with a $6.6 billion credit agreement aimed at supporting priority projects in the fields of energy transition, transport, and infrastructure, Trend reports.
The funding was officially announced at the 7th meeting of the Joint Intergovernmental Commission on Economic Cooperation between Azerbaijan and the UK, held in London.
The Memorandum of Understanding (MoU) signed between the UK Export Finance (UKEF) and Azerbaijan’s Export and Investment Promotion Agency (AZPROMO) outlines the terms for the loan, which will be directed towards key initiatives in renewable energy, energy efficiency, and the reduction of emissions. The agreement also focuses on advancing the country’s transition to a more liberalized electricity market.
During the meeting, discussions centered on further cooperation in various sectors, including the development of offshore wind, solar, and hydrogen energy infrastructure. The UK and Azerbaijan are also collaborating on enhancing energy networks and improving energy efficiency as part of Azerbaijan’s broader energy transition goals.
Azerbaijan’s Energy Minister, Parviz Shahbazov, highlighted the importance of the UK's role in the country’s economic development, emphasizing that the UK remains Azerbaijan's largest foreign investor with over $37 billion invested to date. This significant partnership in the energy sector is set to continue as Azerbaijan pursues ambitious projects aimed at reducing its carbon footprint and expanding its renewable energy capacity.