Yerevan/Baku – January 27, 2026 – In a significant step forward for economic cooperation amid ongoing normalization efforts, Armenia and Azerbaijan have finalized an agreement allowing the railway transportation of liquefied natural gas (LNG, often referred to as liquefied petroleum gas or LPG in regional contexts) and bitumen through Azerbaijani territory to Armenia.
Armenian Minister of Economy Gevorg Papoyan announced the breakthrough on social media, stating: “An agreement has been reached between Armenia and Azerbaijan on the railway transportation of liquefied gas and bitumen through the territory of Azerbaijan. Our entrepreneurs can already take advantage of this opportunity.”
The deal, reported widely by Armenian and Azerbaijani media outlets including News.Az and Aze.Media, comes as Armenia grapples with supply challenges for liquefied gas. Traditional import routes from Russia via the Upper Lars checkpoint have faced disruptions due to weather conditions, while supplies from Iran have encountered complications related to regional logistics and other factors. These issues have driven up domestic prices in Armenia, with reports of shortages and price spikes prompting the search for alternative transit paths.
Under the new arrangement, Russian-sourced liquefied gas will be transported by rail through Azerbaijan to reach Armenian markets, marking a pragmatic use of existing infrastructure to address immediate energy needs. Bitumen, a key material for road construction and infrastructure projects, is also included in the transit protocol, potentially supporting Armenia’s ongoing development efforts.
This agreement builds on recent progress in bilateral economic ties. Late last year, Azerbaijan began direct shipments of petroleum products, including gasoline, to Armenia for the first time in decades. Those initial deliveries—transiting via Georgia due to the lack of direct rail links between Baku and Yerevan—were hailed as historic milestones. They followed high-level discussions, including meetings between deputy prime ministers, and contributed to broader confidence-building measures in the post-conflict era.
The transit deal aligns with the broader peace process facilitated in part by international mediation, including U.S.-brokered initiatives like the TRIPP (Trump Route for International Peace and Prosperity) framework. Such arrangements underscore a shift toward mutual economic benefits, regional connectivity, and reduced dependencies on single supply sources. Armenian officials have framed similar imports as part of an energy diversification strategy to enhance security and affordability for consumers.
While Azerbaijani authorities have not issued an immediate official comment on the latest agreement, the move reflects growing pragmatism on both sides. Previous fuel shipments from Azerbaijan have already helped lower gasoline prices in Armenia by up to 15% in some cases, breaking local monopolies and demonstrating tangible dividends from improved relations.
Analysts view this as another concrete sign that economic cooperation can serve as a foundation for lasting stability in the South Caucasus. With parliamentary elections approaching in Armenia and ongoing border delimitation talks, such practical steps may help sustain momentum toward a comprehensive peace deal.
As implementation begins, Armenian businesses are positioned to leverage the new route for more reliable and potentially cost-effective supplies of essential energy products and materials. This development could pave the way for expanded trade in other sectors, further integrating the region’s economies after years of separation.
Azeri Times will continue to monitor developments in this evolving story.
