European Union and Azerbaijan

The legal framework of relations of the Republic of Azerbaijan with the European Union

• The Partnership and Cooperation Agreement (PCA) was signed on April 22, 1996 and came into force on July 1, 1999;
• The European Union-Azerbaijan Action Plan adopted on November 14, 2006;
• Memorandum of Understanding aimed at strategic partnership in the field on energy between the EU and Azerbaijan signed on November 7, 2006;
• Framework Agreement between the Government of the Republic of Azerbaijan and the Commission of the European Communities signed on June 16, 2008;
• Eastern Partnership Declaration signed on May 7, 2009;
• “Joint Declaration” on the establishment of the Southern Gas Corridor signed on January 13, 2011;
• “Protocol of Intention” on the establishment of the working group on the Southern Gas Corridor signed on January 13, 2011;
• Memorandum of Understanding on National Indicative Program (NIP) for 2011-2013 within the framework of the EU's European Neighbourhood and Partnership Instrument between the Republic of Azerbaijan and the European Commission signed on January 13, 2011;
• Memorandum of Understanding on Framework Document of Comprehensive Institution Building (CIB) Program between the Republic of Azerbaijan and the EU signed on January 13, 2011 within the framework of Eastern Partnership;
• “Agreement between the European Union and the Republic of Azerbaijan on the facilitation of the issuance of visas” signed on November 29, 2013;
• “Agreement between the European Union and the Republic of Azerbaijan on the readmission of persons residing without authorization” signed on February 28, 2014;
• “Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part, on a Framework Agreement between the European Union and the Republic of Azerbaijan on the general principles for the participation of the Republic of Azerbaijan in Union programmes” signed on June 14, 2014. The Protocol came into force on June 14, 2016;
• The Partnership Priorities document between the European Union and the Republic of Azerbaijan was initialed on July 11, 2018 and entered into force on September 28;
• “A Memorandum of Understanding on Strategic Partnership in the field of energy between the European Union represented by the European Commission and the Republic of Azerbaijan” was signed between Azerbaijan and the European Union on July 18, 2022.

Partnership and Cooperation Agreement (PCA)

A legal basis of comprehensive relations between Azerbaijan and the European Union is "Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part (PCA)" signed in Luxembourg on April 22, 1996 and came into force on June 22, 1999. This agreement covers all possible, including political and economic spheres of cooperation between Azerbaijan and the EU. The agreement ensures frameworks of all kinds of cooperation between Azerbaijan and the EU, except military area. PCA was signed for 10 years period and its execution is extended for a period of one year each year as implementation period of the agreement ended in 2009.

European Neighbourhood Policy (ENP)

The recommendation of the European Commission on attraction of South Caucasus countries to the ENP was adopted in the meeting of Council of the heads of European Union state and government in 2004. 5-year Action Plan was adopted on November 14, 2006. 10 priority directions were determined in the Action Plan: 1) Peaceful solution of the Nagorno-Karabakh conflict, 2) Strengthening democracy, 3) Strengthening protection of human rights and fundamental freedoms and the rule of law, 4)Improving business and investment climate, 5) Improving customs service, 6) Support balanced and sustained economic development, 7) Further convergence of economic legislation and administrative practices, 8) Strengthening of EU-Azerbaijan energy and transport cooperation, 9) Enhancement of cooperation in the field of justice, freedom and security, including in the field of border management, 10) Strengthening regional cooperation.

Memorandum of Understanding aimed at strategic partnership in the field of energy between the Republic of Azerbaijan and the European Union

Memorandum of Understanding aimed at strategic partnership in the field of energy between Azerbaijan and the European Union was signed by the President of the Republic of Azerbaijan on November 7, 2006.  

“A Memorandum of Understanding on Strategic Partnership in the field of energy between the European Union represented by the European Commission and the Republic of Azerbaijan” was signed between Azerbaijan and the European Union on July 18, 2022.

Eastern Partnership Initiative

Eastern Partnership (EP) initiative nominated by Poland and Sweden aims to strengthen bilateral cooperation between the EU and Azerbaijan, Georgia, Armenia, Ukraine, Belarus, Moldova, referred as Eastern Partners and to continue on multilateral direction within the framework of ENP. Within the framework of the EP new cooperation agreements on deep and comprehensive Free Trade Areas, the programs financed by the EU, "mobility and security pacts", visa-free travel, accession to the EU labour market, approximation to the EU legislation and standards, people-to-people contacts were considered. The following platforms were established for carrying out discussions within the multilateral format of EP:

-Platform on strengthening institutions and  good governance and stability (Platform 1); 
-Platform on economic development and market opportunities (Platform 2);           
-Platform on connectivity, energy efficiency, environment and climate change (Platform 3);        
-Platform on mobility and people-to-people contacts (Platform 4).

The Ministry of Economy takes part at the general meetings of Platform 2 and meetings of the panels on “Trade” and “Structural reforms, Financial sector architecture, agriculture and Small and medium-sized entrepreneurship” created under this platform.
Meetings are held within the framework of the platforms on a regular basis.

State Commission of the Republic of Azerbaijan on cooperation with the European Union

New composition of the State Committee of the Republic of Azerbaijan on European integration was approved by the Order No 2597 of the President of the Republic of Azerbaijan dated 13 December 2012 on the amendments to the Order No 834 of the President of the Republic of Azerbaijan dated 1 June 2005 on "Establishment of State Commission of the Republic of Azerbaijan on European integration", and the Minister of Economy of the Republic of Azerbaijan was appointed the head of the Commission. 

4th meeting of the Commission was held on August 24, 2013. "Actions Plan on the approximation of the legislation of Azerbaijan to the EU legislation for 2013-2014" was approved at the meeting.

Several working groups operate within the Commission. One of the Working Groups operating within the Commission chaired by the Minister of Economy of the Republic of Azerbaijan is the Working Group on Economic Issues. The function of the Working Group is focused on the execution of "Work Plan" designed on the basis of the economic issues of the Action Plan approved in 2006 within framework of the European Neighbourhood Policy and "Action Plan on the approximation of the legislation of Azerbaijan to the EU legislation over 2013-2014".        
The name of the Commission was changed as the State Committee of the Republic of Azerbaijan on cooperation with the European Union by the Order No 1382 of the President of the Republic of Azerbaijan dated 31 August 2015. According to the Order No 1807 of the President of the Republic of Azerbaijan dated 11 February 2020, the composition of the Commission was changed and 40 members were approved. Mr. Shahin Mustafayev, Deputy Prime Minister of the Republic of Azerbaijan, has been appointed Chairman of the Commission.

Cooperation on assistance between Azerbaijan and the EU

Within the framework of the EU TACIS Program, the Emergency Assistance Program (EXAP), ECHO Humanitarian Assistance Program, Food Assistance Program, Food Security Program (FSP), Rehabilitation Program (REHAB), Emergency Humanitarian Assistance Program (EHA) humanitarian, technical and food assistance were provided to Azerbaijan over 1992-2006.

Assistance Instruments of the European Union

Between 2007 and 2013, the European Neighborhood and Partnership Instrument (ENPI) and between 2014 and 2021, the European Neighborhood Instrument (ENI) were applied. From 2022, European Commission started to apply new Neighborhood, Development and International Cooperation Instrument (NDICI). Within the framework of this instrument, assistance will be provided through twinning, technical assistance, TAIEX and other instruments for the implementation of the European Neighborhood Policy.

Assistance to Azerbaijan within the framework of the NDICI instrument will be directed to the following priority areas defined in the European Union Multiannual Indicative Program for Azerbaijan for the years 2021-2027:

• resilient, sustainable and integrated economies;

• accountable institutions, the rule of law and security;

• environmental and climate resistance;

• resilient digital transformation;

• resilient, gender-equal, fair and inclusive societies.

Twinning Instrument
Currently, Azerbaijan is the leader in the region according to the number of Twinning projects. The project of which Ministry of Economy was beneficiary was selected as a one of the four successful projects in 2010 and the project of which Ministry of Economy was beneficiary was one of the three successful projects in 2011 by the European Commission. Twinning project under the beneficiary of the Ministry of Culture and Tourism was selected one of the most successful projects among the implemented projects in all countries during 2014 by the EU, as well as the project under the beneficiary of the State Committee for Standardization, Metrology and Patent during 2016, the project under the beneficiary of the State Agency on Mandatory Health Insurance during 2018 and the project under the beneficiary of Ministry of Ecology and Natural Resources during 2019, respectively.

50 Twinning projects have already been completed and 6 projects are on-going.

TAIEX

34 TAIEX applications were submitted to the European Commission in 2011. 10 of these applications were on workshop in Azerbaijan, 15 of them were on expert mission and 9 of them were on study visits.

39 TAIEX applications were submitted to the European Commission in 2012. 12 of these applications were on workshop in Azerbaijan, 16 of them were on expert mission and 11 of them were on study visits.

50 TAIEX applications were submitted to the European Commission in 2013. 16 of these applications were on workshop in Azerbaijan, 20 of them were on expert mission and 14 of them were on study visits.

21 TAIEX applications were submitted to the European Commission in 2014. 6 of these applications were on workshop in Azerbaijan, 6 of them were on expert mission and 5 of them were on study visits.

54 TAIEX applications were submitted to the European Commission in 2015. 17 of these applications were on workshop in Azerbaijan, 21 of them were on expert mission and 16 of them were on study visits.

 33 TAIEX applications were submitted to the European Commission in 2016. 13 of these applications were on workshop in Azerbaijan, 6 of them were on expert mission and 14 of them were on study visits.

 71 TAIEX applications were submitted to the European Commission in 2017.17 of these applications were on workshop in Azerbaijan, 22 of them were on expert mission and 30 of them were on study visits, 2 of them were series of events.

100 TAIEX applications were submitted to the European Commission in 2018. 24 of these applications were on workshop in Azerbaijan, 33 of them were on expert mission and 37 of them were on study visits, 6 of them were series of events.

22 TAIEX applications were submitted to the European Commission in 2019. 3 of these applications were on workshop in Azerbaijan, 7 of them were on expert mission and 9 of them were on study visits, 3 of them were series of events.

23 TAIEX applications were submitted to the European Commission in 2020. 4 of these applications were on study visit, 10 of them were on expert mission and 9 of them were on workshop in Azerbaijan.

26 TAIEX applications were submitted to the European Commission in 2021. 11 of these applications were on workshop, 8 of them were on study visits, 7 of them were on expert mission to Azerbaijan.

29 TAIEX applications were submitted to the European Commission in 2022. 7 of these applications were on workshop, 11 of them were on study visits, 9 of them were on expert mission to Azerbaijan.

SIGMA

Totally, 15 SIGMA projects were implemented.

Projects implemented within the framework of the EU assistance tools

On-going Twinning projects

The Ministry of Economy is the beneficiary of the following technical assistance project: