President Ilham Aliyev said Azerbaijan has formally ended the Armenia-Azerbaijan conflict at the political level, secured a strategic reset in relations with the United States, and positioned itself as a regional transport, energy and security hub, during a wide-ranging interview with local television channels on January 5.

Speaking after meetings in Washington and at the United Nations last year, Ilham Aliyev said 2025 marked the first period of sustained peace since independence, following the end of hostilities and the initialling of a peace agreement with Armenia in the US capital. He described the White House events as placing a “political seal” on Azerbaijan’s military victory, adding that the outcome had already begun to deliver political and economic dividends.

Aliyev said relations with Washington had entered a “completely new phase” after years constrained by Section 907 of the US Freedom Support Act. He said US President Donald Trump had effectively ended the application of Section 907 during their meeting, calling the move symbolically significant even though Congress has yet to repeal it formally. According to Aliyev, Baku and Washington have since established a strategic working group tasked with preparing a strategic partnership charter, covering economic, trade, transport and military-industrial cooperation.

He said the US-backed arrangements also cleared the way for the opening of the route linking mainland Azerbaijan with its Nakhchivan exclave, formally called the Trump Route for International Peace and Prosperity (TRIPP), but referred to in Azerbaijan as the Zangezur Corridor. Azerbaijan’s sections of the road and railway are close to completion, with the remaining construction primarily on Armenian territory.

On foreign policy more broadly, Aliyev highlighted the signing of a Comprehensive Strategic Partnership with China, Azerbaijan’s accession as the sole new member of the D-8 Organisation of Islamic Cooperation economic bloc, and its election as a full member of the Consultative Meeting of Central Asian Heads of State. He said these moves reflected Azerbaijan’s growing role as a connector between Central Asia and the West, noting that more than 100,000 containers had transited the country for the first time.

Aliyev said Azerbaijan’s strategic partnership with China had already translated into tangible economic results. Bilateral trade exceeded $4bn, up more than 20%, with Chinese companies investing in renewable energy, electric transport and industrial projects in Azerbaijan. He added that military-technical cooperation with China had also begun, including joint ventures, though details remain confidential.

On defence and security, Aliyev said Azerbaijan continued to strengthen its armed forces despite the end of the war, arguing that global developments showed “might is right” had become the dominant reality. He proposed holding joint military exercises among Turkic states in Azerbaijan, stressing this did not imply the creation of a formal military bloc but practical cooperation. He said Azerbaijan’s army is now “several times stronger” than at the end of the 2020 war.

Aliyev said Azerbaijan had no plans to participate in combat operations abroad and rejected claims that Baku had agreed to join any international force in Gaza. He said Azerbaijan would only consider peacekeeping missions under a clear mandate and had already submitted detailed questions to the US side after what he called inaccurate public statements by American officials. He said Azerbaijan would only consider participation in a peacekeeping mission under a strictly defined international legal mandate, with clear rules of engagement, a limited timeframe and guarantees that its forces would not be drawn into active hostilities, adding that detailed questions had already been sent to the US side after public remarks by American officials. Aliyev reiterated Azerbaijan’s long-standing political support for Palestinian rights within the framework of international law, while avoiding any endorsement of armed groups, and stressed that Baku’s engagement would be limited to humanitarian assistance and diplomatic support. He linked this position to Azerbaijan’s broader foreign policy principle of avoiding external wars and regional entanglements, arguing that global instability shows how quickly even limited involvement can escalate.

Turning to the economy, Aliyev said Azerbaijan remained financially independent, with foreign debt reduced to just over 6% of GDP and foreign exchange reserves exceeding external debt by more than 16 times. He said Azerbaijan would resume limited borrowing to finance large transport, water and connectivity projects without cutting defence, social spending or reconstruction in Karabakh and East Zangezur.

Aliyev said non-oil GDP grew 3.2% over the first 11 months of last year, while natural gas output is set to rise through new phases at Shah Deniz, Absheron and deep gas production at Azeri–Chirag–Gunashli. Azerbaijan exported more than 25 bcm of gas last year and currently supplies pipeline gas to 14 countries, with two more expected to be added this year.

He said renewables are central to Azerbaijan’s long-term model, with plans to integrate 6 GW of solar, wind and hydropower capacity by 2030 and 8 GW by 2032. Aliyev linked this expansion directly to ambitions to develop Azerbaijan as a regional data, IT and artificial intelligence hub, citing surplus electricity capacity of around 2 GW.

On social policy, Aliyev said five social reform packages over seven years had covered about 4 million people, with total spending of AZN8bn. He said the minimum wage has increased more than 40-fold over two decades, while the state has provided housing to 16,000 families of martyrs and war veterans and advanced prosthetics to hundreds of wounded servicemen.

He said the First State Programme on the Great Return is progressing in Karabakh and East Zangezur, with energy, water, roads and railways rebuilt to enable permanent resettlement. Around 70,000 people currently live in 32 cities and villages, with the population expected to rise significantly this year as housing construction accelerates.

Aliyev said the Zangezur Corridor would integrate Karabakh, East Zangezur and Nakhchivan into a single economic space, complemented by an alternative route through Iran via a new bridge over the Araz River. He said the corridor would form part of both East–West and North–South transport routes, with cargo capacity eventually reaching 15mn tonnes.

Addressing governance, Aliyev said a new administrative model piloted in the liberated territories could be expanded nationwide, but warned that personnel quality remains decisive. He said officials who fail public trust are dismissed or prosecuted, adding that public oversight plays a key role in identifying abuses.

Aliyev also reiterated calls to protect the Azerbaijani language, warning that excessive use of foreign words undermines national identity, and said reforms in science and education are aimed at turning natural resource wealth into human capital through universities, research and international partnerships.