Azerbaijan’s President Ilham Aliyev used the informal summit of the Organisation of Turkic States (OTS) in Budapest to showcase his country’s growing regional economic influence, highlighting investments exceeding $20bn across member states, major logistics infrastructure and the outcomes of COP29 hosted in Baku, according to the Azerbaijani presidential website.

Hungarian Prime Minister Viktor Orbán spoke of Azerbaijan’s role in European energy diversification, specifically noting that Hungary received natural gas from Azerbaijan for the first time in 2023. Orbán also credited Azerbaijani authorities for opening opportunities for Hungarian energy firms in Azerbaijan’s oil and gas sector, a strategic partnership described as vital given Hungary’s lack of domestic energy reserves.

The OTS leaders, including presidents of Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan, joined Aliyev in reaffirming support for the bloc’s first joint financial institution, the Turkic Investment Fund, which is expected to begin project activities in 2025. Kyrgyz President Sadyr Zhaparov stated that the fund would help develop national priorities in trade, logistics, infrastructure, energy, digital economy and tourism.

Aliyev highlighted Azerbaijan’s ongoing transformation into a critical Eurasian transport hub. In 2024 alone, 11mn tonnes of cargo were shipped via Azerbaijan from Turkey and Central Asia. Investments into the Baku-Tbilisi-Kars railway have lifted its annual capacity to 5mn tonnes, while expansion at the Alat International Trade Seaport will raise its capacity to 25mn tonnes from the current 15mn. Ten new cargo vessels are also under construction at the Baku Shipyard, adding to the existing fleet of over 50.

Digital connectivity was also a focus. A joint fibre-optic cable project between Azerbaijan and Kazakhstan, laid across the Caspian Sea, aims to establish a secure “digital corridor” and strengthen regional data exchange. Kazakh President Kassym-Jomart Tokayev pointed to the initiative as part of broader efforts to diversify energy exports and boost digital infrastructure.

On the climate front, Aliyev pointed to the success of COP29 held in Baku in 2024. The summit resulted in a tripling of global climate finance commitments to $300bn, the operationalisation of the Loss and Damage Fund, and a long-stalled consensus on international carbon markets. The Baku-hosted event, which drew over 77,000 participants and 70 heads of state and government, was described by Aliyev as the “Baku Breakthrough”.

In a major step toward energy transition, Azerbaijan, Kazakhstan and Uzbekistan signed a strategic partnership agreement at COP29 to export green electricity via a Caspian-Black Sea corridor. The Budapest Declaration, signed at the OTS summit, further reinforced commitments to green development, sustainable infrastructure and expanded energy cooperation.

The OTS also committed to launching the long-anticipated Turkic Investment Fund, praised the operational start of simplified customs corridors, and endorsed Azerbaijan’s readiness to host the 12th OTS summit in Baku later this year, where economic, green energy and digital transformation are expected to top the agenda.