While the world looks at Iran, a small Caucasus country becomes Europe’s great energy hope

Azerbaijan has become one of the great energy hopes for Europe and the Member States. Therefore, Ursula von der Leyenpresident of the European Commissioncarried out a route through the South Caucasus at the beginning of July, an area that is presented as vital for Europe to be able to supply itself with energy in the face of the crisis in the Middle East and the conflict in Russia. Consult in this article everything you need to know about what could be Europe’s great solution to the war in Iran.

The war in Iran and the conflict in the Middle East have shaken the foundations of the world economy and the closure of the Strait of Hormuz has made Europe reconfigure alliances to continue supplying itself with energy at an optimal price. If Russia’s invasion of Ukraine already represented an energy drama, the war in Iran has raised concerns about energy prices to the highest level, which rose up to 60% during the month of March.

So, faced with the conflict in the Middle East and the situation in Russia, Europe has had to look for new solutions to continue supplying itself with energy at a time when new technologies will exert great demand on the part of energy companies. For this reason, in the first week of July, the president of the European Commission, Ursula von der Leyen, visited the countries of the South Caucasus region, an area that is presented as key for member states to continue accessing energy.

Europe’s position in the South Caucasus

The president of the European Commission visited first Azerbaijanwhich, despite being an authoritarian regime, in recent months has become a great strategic partner for the energy diversification of the European Union. Ursula von der Leyen met in Baku with Ilham Aliyev, the country’s president, who made it clear to the press that: “Today, half of our gas exports go to the Member States of the European Union.”

The President of Azerbaijan reported that the Southern Gas Corridor has become “the main artery for the transportation of natural gas from Azerbaijan to Europe.” And no wonder, this corridor transports natural gas from the Shah Deniz field in Azerbaijan to Europe over 3,500 kilometers. «We have not forgotten that, at the moment when Russia used energy, specifically gas, as a weapon against Europe, Azerbaijan took a step forward. The Southern Gas Corridor has strengthened Europe’s energy security and is a remarkable success story,” said the President of the European Commission.

In addition to this corridor, Azerbaijan is also vital in connectivity with regards to the Media Corridor, also known as the Trans-Caspian International Transport Route (TITR), which connects China and Southeast Asia with Europe through Kazakhstan, Azerbaijan, Georgia and Turkey. This corridor serves as a strategic alternative to avoid crossing Russia and the Suez Canal.

Armenia and the European Union

After visiting Baku, Von der Leyen visited Armenia, another country that has become a partner of the European Union. Although this country does not produce important hydrocarbons, it is important as a connector for routes to the eastern Mediterranean. Welcoming democracy and partnering with Europe, the president of the European Commission announced significant new financial support packages and the removal of tariffs on most Armenian exports to the EU.

«I know that Armenia continues to face considerable economic pressure from Russia (…), but you can be assured that when pressure increases on our partners, the EU steps up. You can count on us,” said the president of the European Commission, who reiterated the promise to invest 200 million euros in a new EU connectivity initiative called the Global Gateway package and to “mobilize up to 2 billion euros for strategic transport, energy and digital projects throughout the South Caucasus.”