The 17th Summit of the Economic Cooperation Organisation (ECO) took place in Khankendi, Azerbaijan, on July 4, bringing together heads of state and government from across the region to discuss economic cooperation and regional challenges.

Azerbaijan hosted the summit in Khankendi, located in the Karabakh region that was recaptured from Armenian forces following the 2020 conflict. This marked the third time Azerbaijan has hosted an ECO summit, with previous gatherings held in Baku in 2006 and 2012.

"Welcome to Khankendi – to the ancient Azerbaijani land of Karabakh," President Ilham Aliyev told summit participants. "Organisation of today's Summit in Karabakh, in Khankendi, holds particular symbolism."

Aliyev detailed the region's recent history, stating that "Armenia had held nearly 20% of Azerbaijan's territory under occupation for almost 30 years, conducting ethnic cleansing and expelling over one million of our fellow Azerbaijanis from their native lands." He said that during the occupation, "Armenia razed our cities and villages to the ground, along with our cultural and religious sites. Armenia had demolished 65 of the 67 mosques; the remaining two were severely damaged and used as barns for cows and pigs." 

The summit featured participation from leaders of Iran, Turkey, Uzbekistan, Kyrgyzstan, Pakistan, Kazakhstan, Tajikistan, Turkmenistan and Afghanistan, along with observer delegations.

Regional tensions and economic goals

Iranian President Masoud Pezeshkian used his address to detail recent military exchanges with Israel. "On June 13, amidst nuclear negotiations with the United States, the Israeli regime's aggressive and brutal attacks against Iran began, clearly violating all principles and norms of international law," he said. Pezeshkian stated that "over 12 days of brutal aggression, a series of criminal operations were carried out against military forces outside their mission area, university professors, ordinary citizens, peaceful nuclear facilities that were supervised by the International Atomic Energy Agency (IAEA) and public infrastructure."

He added that Iran's armed forces "delivered a significant lesson to the aggressors and prevented the expansion of war in the region."

Turkish President Recep Tayyip Erdoğan addressed regional stability, stating: "The region cannot bear another war, and Israel must immediately cease its attacks on Gaza." He stressed that "Iran's nuclear issue can only be resolved through dialogue and that Turkey is ready to play a facilitating role in this process."

On economic cooperation, leaders discussed expanding intra-regional trade, which currently stands at approximately 8-10% of member countries' total trade volume. Uzbekistan's President Shavkat Mirziyoyev noted that "in 2024, this figure stood at $95 billion, accounting for 10% of our countries' total trade turnover."

Mirziyoyev proposed developing an "ECO 2035 Strategy" and suggested creating "Green Corridors" for agricultural trade. "We propose holding a meeting of our trade ministers in Tashkent this year to discuss the strategic issues in this area and conclude the Agreement on Trade Facilitation," he said.

Iranian President Pezeshkian outlined ambitious goals for the organisation. "ECO can enhance the growth, prosperity, vitality and resilience of member states and the entire region," he said. He proposed establishing an "ECO Artificial Intelligence Centre" and called for free trade negotiations to "establish an ECO free trade zone by 2035."

Bilateral diplomacy and regional unity

During bilateral meetings, Aliyev and Pezeshkian discussed cooperation between their nations. "Azerbaijan and Iran are friendly, neighbouring and brotherly countries," both leaders said, noting "cultural, religious, traditional and ethnic ties of kinship and brotherhood between the two nations."

Aliyev extended condolences "on behalf of the Azerbaijani side to the people of Iran over the death of Iranian officials and civilians in this confrontation, expressing the solidarity and support of the Azerbaijani state and people with the state and people of Iran."

In his meeting with Turkish President Erdoğan, Aliyev heard reaffirmation that "brotherly Turkey always stands by brotherly Azerbaijan in all matters and at all times." Erdoğan stated that Khankendi "will become a new hub of development and peace in the Caucasus."

Pakistan's Prime Minister Muhammad Shahbaz Sharif met separately with both Aliyev and Pezeshkian. During his meeting with the Iranian president, Sharif "reaffirmed his condemnation of the Zionist regime's aggression against Iran, emphasising Iran's right to self-defence."

Pezeshkian told Erdoğan that "the only way to stop this trend is the unity of the Islamic Ummah," referring to Israeli actions in Gaza and recent attacks on Iran. He noted that "when the Zionist regime attacked Iran, it presumed that the aggression could sow discord among the Iranian people; however, everyone, including domestic critics, stood united against this attack."

Development projects and future cooperation

Alongside the summit, leaders visited reconstruction projects in Karabakh. Aliyev and Kyrgyzstan's President Sadyr Japarov inaugurated the first phase of Khidirli village in Aghdam district, which includes 719 houses designed to resettle approximately 3,000 people. "On your behalf and on behalf of all our former displaced persons, I express my gratitude to my dear brother, the President of Kyrgyzstan, Sadyr Nurgozhoevich Japarov, for his assistance in the restoration and revival of Karabakh," Aliyev told new residents.

"We share common values, and we must pass them on to the next generation. The Heydar Aliyev School in Bishkek and the Manas School in the village of Khidirli stand as symbols of the friendship between our peoples," Japarov said.

The leaders also toured a joint Azerbaijani-Uzbek textile factory in Khankendi that employs 250 people and plans to expand to 500 jobs, producing clothing for both domestic use and export.

ECO Secretary General Asad Majeed Khan concluded that "thanks to your leadership and foresight, several important firsts have been achieved at this Summit," noting the inaugural "ECO Week" that brought together government officials, women, youth and private sector representatives.

Iran announced its readiness to host the 18th ECO Summit, while Azerbaijan confirmed it will host the Organisation of Islamic Cooperation Summit next year. The gathering highlighted both opportunities for regional economic integration and ongoing geopolitical tensions affecting ECO member states, particularly regarding conflicts in the Middle East and efforts to balance relationships with global powers.