Azerbaijan Calls on EU to Reassess Gas Financing Rules

Azerbaijan has called on the European Union to reconsider its approach to financing natural gas projects, saying current restrictions are limiting the bloc’s ability to secure stable energy supplies. The statement comes as Europe continues efforts to diversify away from Russian gas while meeting climate commitments.

Speaking at an energy forum in Baku, government representatives said that natural gas should be treated as a transitional resource that supports both security of supply and the gradual shift toward renewables. Officials emphasized that investment in new pipelines, interconnections and storage remains critical if Europe is to meet demand during the coming decade.

Azerbaijan has already increased gas exports to the EU through the Southern Gas Corridor, delivering more than 12 billion cubic meters in 2024. Authorities in Baku noted that with additional financing the corridor could be expanded, raising capacity to serve new markets in Central and Eastern Europe.

The government also underlined that gas projects could be developed alongside renewable energy initiatives. Azerbaijan has announced several large scale wind and solar projects and said balanced investment is needed to ensure reliability while renewable capacity grows.

EU officials have previously stated that financing for fossil fuel infrastructure should be phased out under the bloc’s Green Deal, but Azerbaijan is pressing for an exemption that recognizes its role as a long term supplier during the transition period.

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