Germany and Azerbaijan agreed to deepen their energy partnership on Tuesday as Chancellor Friedrich Merz hosted President Ilham Aliyev in Berlin, with both leaders signing declarations to establish a bilateral strategic agenda and a joint business council.
Berlin is seeking to increase imports of natural gas and crude oil from Azerbaijan as it diversifies supply sources. Azerbaijan has been delivering gas to Germany since the start of 2026 under a 10-year contract providing 1.5 billion cubic metres annually. Merz noted oil shipments could be particularly significant for southern Germany. Aliyev called on the European Union and European banks to finance new pipeline infrastructure to support expanded deliveries, saying Azerbaijan already supplies 25 billion cubic metres annually to 10 European countries.
Merz also praised the 2025 peace agreement between Azerbaijan and Armenia as historic. The talks follow a broader EU-Azerbaijan supply expansion agreed in 2022, under which 11.3 billion cubic metres were delivered to the bloc in 2025.