KYIV, 14 July 2025 — Ukrainian Energy Minister Herman Halushchenko met in Baku with his Azerbaijani counterpart Parviz Shahbazov to advance a potential agreement for importing Azerbaijani natural gas and expanding bilateral energy ties.
Key Outcomes
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Gas-import option on the table.
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Ukraine is evaluating volumes and routes for Azerbaijani gas as part of the EU-backed diversification strategy that reduces dependence on Russian supplies.
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Ukraine’s storage offer.
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Kyiv proposed that Azerbaijan—and other international shippers—store gas in Ukraine’s 31 billion-m³ underground facilities under duty-free “bonded-warehouse” conditions.
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Renewables collaboration.
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Existing Azerbaijani support to Ukraine’s power sector has reached US $42 million; new joint solar and wind projects are under review.
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Signed roadmap.
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The ministers endorsed a bilateral action plan and a protocol of the Intergovernmental Commission session on 12 July, setting milestones through 2026.
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“We’re ready for new gas-sector formats and grateful for Azerbaijan’s ongoing assistance. Together we’re building a resilient energy partnership,”
— Herman Halushchenko, Minister of Energy of Ukraine
Strategic Significance
| Pillar | Benefit to Ukraine | Benefit to Azerbaijan |
|---|---|---|
| Supply diversification | Reduces exposure to Russian gas flows | Opens new Central-European market |
| Underground storage | Monetises idle capacity; stabilises winter supply | Provides seasonal swing flexibility for SOCAR |
| Green-energy projects | Accelerates solar-wind build-out in war-damaged regions | Generates JV opportunities and technology transfer |
Next Steps
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Technical teams to model pipeline interconnectors and LNG swap scenarios.
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Storage term-sheet expected by September, detailing entry/exit fees and customs-free regime.
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Renewables taskforce to draft EPC timelines for pilot 100 MW solar farm in southern Ukraine.
Context
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Ukraine operates the largest underground gas storage network in Europe, much of it currently under-utilised due to wartime demand shifts.
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The EU’s diversification roadmap encourages member states and partners to tap non-Russian gas sources, including the Caspian region.
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Azerbaijani humanitarian and energy assistance to Ukraine has climbed steadily since 2022, underscoring Baku’s balancing role in regional energy security.
Bottom line: AUkraine–Azerbaijan gas deal—coupled with the use of Ukraine’s cavernous storage sites—would mark a significant step toward both countries’ energy-security goals while strengthening their broader economic partnership.
