Caucasus in July 2026: the most important developments in economy
The Caucasus economy in July 2026 was marked by Azerbaijan's push to present itself as a trade and transport hub. On July 27 Kazakhstan named Azerbaijan a priority partner in linking national product catalogues, and Kyrgyzstan sharply expanded trade with it. Azerbaijan described itself as a logistics link between Europe and Asia, launched the first digital single-window trade system among CIS countries on July 16, and introduced an e-permit system for freight with Georgia with an aim to speed up trade along the Middle Corridor. On July 21 Germany's Chancellor Friedrich Merz spoke of attractive economic prospects in Azerbaijan, and President Ilham Aliyev said specific proposals had been made about German companies operating there. Georgia's ports and railways reached decade highs in traffic, and Shanghai-Tbilisi flights began.
Azerbaijan's energy figures moved in both directions. Exports in the first half of the year included 10.1 million tons of crude oil and petroleum products, and gas production grew, while gas exports to Türkiye fell in January to May. Oil prices rose by more than 8% around July 24 and dropped later in the month. Azerbaijan suspended gold sales from its state oil fund.
Armenia faced pressure on its exports. Russia widened restrictions on Armenian dairy products, trade with Russia fell by 20.5% in the first five months of the year, and Armenia looked for other markets, sending its first flowers to the United Arab Emirates on July 20. On July 29 the World Bank urged Armenia to shift from investment-driven to productivity-led growth and reported that its economy was cooling. Armenia announced customs and logistics centers in Syunik and Yerevan with EBRD financing, and Iran proposed increasing gas exports to it.
In Georgia, an accident at the Inguri hydro plant in Abkhazia cut power across the country on July 23, including Tbilisi, and a second nationwide blackout followed on July 25. A $150 million expansion of Tbilisi Airport was launched in July.
by WorldBrief & Maksim Micheliov | AI-generated summary
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