UK to provide £5 bln in credit guarantees for Azerbaijan projects

The UK’s Export Credit Agency, UK Export Finance (UKEF), will provide up to £5 billion in credit guarantees to Azerbaijan for priority projects in energy, transport, and infrastructure, the two governments announced following the 7th session of their Intergovernmental Commission on Economic Cooperation in London.

A memorandum of understanding was signed between UKEF and Azerbaijan’s Export and Investment Promotion Agency (AZPROMO).

The sides also agreed to enhance cooperation in digital construction, textiles, aviation, water resource management, and demining. Particular attention was given to simplifying export procedures and expanding engagement with industrial zones, including the Alat Free Economic Zone.

UK Minister for Small Business, Services and Exports Gareth Thomas said the agreements would strengthen commercial ties in infrastructure, energy, and education with “a key partner like Azerbaijan.”

Azerbaijan’s Energy Minister Parviz Shahbazov highlighted the strategic importance of UK-Azerbaijan relations, noting that the UK has invested over $37 billion in the country and that more than 500 UK companies operate in Azerbaijan, including BP, which plays a key role in both oil and green energy projects.

Construction of the "Shafag" solar power plant in Azerbaijan’s Jabrayil region is set to begin in 2025.

The next session of the commission will be held in Baku in 2026.

N.Tebrizli