Latvia & Azerbaijan: Trade Up 10% & Eye Green Tech, Logistics Cooperation
BAKU, Azerbaijan, March 25. Latvia is actively seeking to expand economic ties with Azerbaijan, viewing the country as a crucial partner in the South Caucasus, according to Raivis Bremšmits, State Secretary of the Latvian Ministry of Economics.
Bremšmits, in an interview with Trend, highlighted the consistent growth in bilateral trade and identified significant opportunities for increased collaboration in logistics, investment, and green technologies. He stated that Azerbaijan is “one of Latvia’s most important partners in the South Caucasus,” and that economic cooperation, while developing at a “gradual pace,” demonstrates “positive long-term potential.”
Trade turnover between Latvia and Azerbaijan reached EUR 47 million in 2024, a 10.2% increase. This positive trend continued into the first half of 2025, with trade volume reaching EUR 28 million – a substantial 43% growth compared to the same period in 2024. Latvian exports to Azerbaijan totaled EUR 37 million in 2024, representing a 17.2% annual increase, and further surged to EUR 21 million in the first six months of 2025, a 43% increase.
While imports from Azerbaijan decreased by 9.2% in 2024, totaling EUR 10 million, they rebounded with a 43% increase in the first half of 2025, reaching EUR 7 million. Azerbaijan’s position as a source of foreign investment in Latvia is also growing, ranking 40th in 2024 with EUR 15 million in investment. This figure rose to EUR 16 million in the first half of 2025, a 7% increase.
Bremšmits noted that Azerbaijan’s ongoing economic modernization, particularly its efforts to attract foreign investment in energy, agriculture, logistics, and digitalization, presents tangible opportunities for Latvia. He emphasized the alignment of these sectors with Latvia’s Research and Innovation Strategy’s (RIS3) priority areas, fostering favorable conditions for cooperation and allowing Latvian businesses to expand their regional presence.
Potential areas for collaboration extend beyond trade and investment, encompassing transport and logistics, agriculture and food production, education, research, and innovation. Bremšmits indicated that cooperation in these areas would be driven by market conditions and commercial interests, emphasizing the importance of continued dialogue between business communities and relevant institutions.
The Latvian State Secretary specifically highlighted the potential for cooperation in green technologies, citing Azerbaijan’s focus on sustainability and modernization as creating opportunities in areas such as waste management, water resource management, and the bioeconomy. He stated Latvia is prepared to share its experience and explore practical cooperation formats, aligning with each country’s priorities and long-term needs.
Latvia’s commitment to sustainable development, climate action, and the adoption of cutting-edge technologies provides a strong foundation for structured exchanges with Azerbaijan, particularly in areas like energy efficiency, renewable energy solutions, and the development of sustainable industry, Bremšmits concluded.