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Azerbaijan’s strategic repositioning

A look at Azerbaijan’s changing role in the geopolitics of Eurasia

January 7, 2026

6 min read

January 7, 2026

6 min read

Photo: Dreamstime.

Not long ago, Azerbaijan was widely treated as a geopolitical margin—important mainly for its oil and gas, constrained by unresolved conflict, and largely reactive to the agendas of larger powers. Today, that perception is increasingly outdated. From the Caspian Sea to Central Asia and from the South Caucasus to Europe, Azerbaijan has emerged as a state that not only adapts to regional change but actively shapes it.

This shift did not happen by accident. It reflects a convergence of post-conflict transformation, infrastructure-driven diplomacy, and a foreign policy that prioritises strategic autonomy over bloc politics. Under President Ilham Aliyev, Azerbaijan has turned geography into leverage, positioning itself as a connector of regions, energy systems, and political interests at a moment when global connectivity itself is being redefined.

The idea that Azerbaijan could one day play such a role is not entirely new. In the mid-1990s, when the country was still struggling with instability and unresolved war, the late US strategist Zbigniew Brzezinski argued that Azerbaijan possessed the core attributes of a successful, independent state—provided it could consolidate sovereignty and anchor itself economically.

When I interviewed Brzezinski in 1996 for my book The South Caucasus at the Crossroads, and later spoke with him again at the Jamestown Foundation in 2010, he consistently described Azerbaijan as a geopolitical hinge: a country whose success or failure would shape the wider Caspian and South Caucasus balance. Three decades later, that assessment appears less theoretical than empirical.

From conflict resolution to strategic reconstruction

The restoration of Azerbaijan’s territorial integrity in 2023 marked a decisive turning point. Yet what followed may prove just as consequential. Rather than freezing the post-conflict status quo, Baku moved quickly to integrate the formerly Armenian-occupied territories into national and regional development plans. Airports, highways, rail links, power infrastructure, and new urban projects have been launched at a pace rarely seen in post-conflict environments.

This reconstruction effort is not merely about rebuilding what was destroyed. It is about repositioning Karabakh within Azerbaijan’s long-term economic strategy—linking it to logistics corridors, renewable-energy projects, and digital infrastructure. By emphasising smart cities and green-energy zones, the government has sought to align post-war recovery with future growth rather than past dependency.

For external partners, the message is clear: Azerbaijan is not only capable of restoring territories to full control, but also of governing and developing them. That capacity matters in a region long defined by frozen conflicts and stalled transitions.

The Middle Corridor and the new geometry of Eurasia

Azerbaijan’s growing influence is most visible in the realm of connectivity. As tensions disrupt traditional East–West trade routes, the Middle Corridor—linking China and Central Asia to Europe via the Caspian Sea and the South Caucasus—has gained strategic importance. Azerbaijan sits at its operational core.

Through sustained investment in the Port of Alat, rail modernisation, Caspian shipping, and customs coordination, Baku has transformed itself from a transit country into a logistics hub. This has elevated Azerbaijan’s relevance not only for the European Union and Türkiye, but also for Central Asian states seeking diversified access to global markets. 

Kazakhstan, Uzbekistan, and Turkmenistan increasingly see Azerbaijan as their principal western gateway. Joint transport initiatives, energy cooperation, and coordinated infrastructure planning have created what amounts to a functional connectivity bloc across the Caspian. While not formalised as a political union, this network has tangible geopolitical effects: it reduces dependence on single routes, increases regional bargaining power, and places Azerbaijan at the centre of a widening Eurasian exchange.

Energy diplomacy beyond dependence

Energy remains central to Azerbaijan’s international profile, but its meaning has evolved. Gas exports via the Southern Gas Corridor have reinforced Azerbaijan’s role in European energy security at a time of acute uncertainty. At the same time, Baku has invested heavily in offshore wind, solar power, and future green-energy transmission projects.

This dual approach—meeting immediate demand while preparing for long-term transition—has strengthened Azerbaijan’s credibility as a strategic partner rather than a purely extractive supplier. It also explains the country’s growing visibility on global platforms, including high-level engagement at the United Nations and the hosting of major international forums. Such recognition reflects not only energy capacity, but diplomatic reliability.

A foreign policy built on strategic autonomy

Perhaps the most distinctive feature of Azerbaijan’s rise has been its foreign policy posture. Rather than anchoring itself to a single bloc, Baku has pursued a strategy rooted in strategic autonomy—maintaining working relationships across geopolitical divides. President Aliyev has engaged with a wide spectrum of leaders, including Türkiye’s Recep Tayyip Erdoğan, Russia’s Vladimir Putin, Iran’s President Masoud Pezeshkian, European Commission President Ursula von der Leyen, and US President Donald Trump. These interactions illustrate a diplomacy focused on access, autonomy, and pragmatic influence.

This approach has allowed Azerbaijan to retain room for manoeuvre in an increasingly polarised international system. Relations with the European Union are anchored in energy, transport, and regulatory cooperation, while ties with Russia remain pragmatic without compromising independence. 

Engagement with Iran has been recalibrated through economic and regional dialogue, and relations with Türkiye and the United States have been consolidated through defence, economic, and diplomatic cooperation. The result is not neutrality, but strategic manoeuvrability across competing spheres of influence.

From potential to power

Taken together, these developments suggest that Azerbaijan has crossed a strategic threshold. It is no longer simply responding to regional dynamics; it is helping define them. The South Caucasus—long shaped by external competition and unresolved disputes—is increasingly organised around initiatives originating in Baku.

These gains, however, are not self-sustaining. Azerbaijan’s emerging role will depend on its ability to manage complexity rather than simply accumulate leverage—balancing connectivity with security, economic integration with sovereignty, and regional ambition with long-term stability. The challenge ahead is less about expansion than consolidation: ensuring that today’s strategic advantages translate into enduring influence.

Still, power in today’s international system is increasingly network-based and transactional. By those measures, Azerbaijan’s performance has been notable. What Brzezinski once identified as potential has begun to materialise as agency: a state using connectivity, reconstruction, and strategic autonomy to shape its environment rather than be shaped by it.

Azerbaijan’s trajectory now poses a strategic question for its partners rather than for Baku itself. Can international actors engage Azerbaijan as a shaping force—one that anchors stability through connectivity and pragmatic diplomacy—rather than viewing it solely through inherited narratives of post-Soviet transition? The answer will influence not only the future of the South Caucasus, but the viability of a more connected Eurasia at a time when fragmentation has become the global norm.

Photo: Dreamstime.

Elkhan Nuriyev

Elkhan Nuriyev

Elkhan Nuriyev is a senior fellow with the Alexander von Humboldt Foundation.

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Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

2. The Challenge

Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
  • Slowed growth → lead generation plateaued despite increasing spend.
  • Internal friction → marketing, sales, and product teams disagreed on KPIs and priorities.

Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
    • The team assumed the problem was lack of budget, but it was actually lack of alignment.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
  • Internal cohesion → marketing + sales now use a single shared dashboard.
The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.

Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
  • Weak differentiation → founders and co-investors saw the fund as “one of many” in the region.
  • Stretched team → too many small bets, not enough clarity on which companies to double down on.

The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the partners and portfolio team.

  • Day 1–3: Intake → Reviewed pitch decks, pipeline funnel data, and start-up performance reports.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • No shared definition of a “high-potential founder.”
    • Support resources were spread too thin across the portfolio.
    • The fund’s positioning was more reactive than proactive — it didn’t own a distinctive narrative in the market.
  • Day 5–10: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

  1. Portfolio Prioritisation Framework → defined clear criteria for where to double down.
  2. Founder Success Playbook → standardised support model for portfolio companies.
  3. Differentiated Narrative → repositioned the fund as “the accelerator of reinvention-ready founders.”
These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
5. From Sprint to Action (4 Pillars Applied)

With clarity from the Sprint, Reinvantage created a tailored support plan:

  • Readiness → Coached partners on using the new prioritisation framework and trained the team on deploying the Founder Success Playbook.
  • Foresight → Ran scenario analysis on regional tech trends, helping the fund anticipate where capital would flow next.
  • Growth → Guided resource reallocation across the portfolio and supported new co-investor pitches for top-performing start-ups.
  • Positioning → Crafted a sharper brand story for the fund, positioning it as the reinvention partner for globally minded founders.
6. The Results
  • 10 portfolio companies onboarded to the new Playbook → greater consistency of support.
  • Raised follow-on capital for 3 top start-ups with the new prioritisation framework.
  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
  • Stronger internal cohesion → partners aligned on where to focus resources.
The client thought the problem was pipeline quality.
The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

The Sprint guaranteed at least £20,000 in value; here it set the stage for multi-million-pound upside in portfolio growth.

Case study: International impact Organisation

1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

2. The Challenge

The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

Key issues:

  • Fragmented delivery → each country office interpreted the programme differently.
  • Donor frustration → reporting lacked consistency and clear impact metrics.
  • Lost momentum → staff energy was spent on administration rather than scaling success stories.

Traditional programme reviews had produced long reports, but no real alignment or action.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

  • Day 1–3: Intake → Reviewed donor reports, programme KPIs, and field feedback.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Donors cared about quantifiable outcomes, but reporting focused on stories.
    • Staff were duplicating efforts across countries, wasting time and resources.
    • The initiative lacked a clear theory of change — everyone described its purpose differently.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

  1. One Unified Theory of Change → agreed narrative for why the programme exists.
  2. Core Impact Metrics → clear, comparable KPIs across all countries.
  3. Smart Resource Sharing → digital hub to stop duplication and accelerate knowledge flow.
By eliminating duplicated reporting and clarifying what success looks like, the client saw they could save the equivalent of £100,000 in staff time annually — while also unlocking stronger donor confidence and follow-on funding opportunities.
5. From Sprint to Action (4 Pillars Applied)

Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

  • Readiness → Trained programme leads on using the new metrics and integrated them into existing workflows.
  • Foresight → Analysed donor trends and expectations, aligning the initiative with the next funding cycle.
  • Growth → Developed a funding case based on the new unified theory of change, securing higher renewal chances.
  • Positioning → Crafted a regional success narrative and storytelling toolkit, helping them showcase results consistently across markets.
6. The Results
  • 30% less time spent on reporting → freed capacity for programme delivery.
  • Donor satisfaction improved → positive feedback on the clarity of impact evidence.
  • Secured new funding commitment → one major donor increased their contribution by 20%.
  • Stronger internal morale → staff felt they were working with clarity, not chaos.
The client thought it needed better donor management.
The Sprint revealed it needed a shared foundation across its teams.

By anchoring on the four pillars, Reinvantage turned alignment into efficiency gains and fresh funding opportunities.

The Sprint guaranteed at least £20,000 in value; here it unlocked both six-figure savings and future-proofed funding.

Case study: National digital development agency

1. The Client

A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

Key issues:

  • Siloed projects → each ministry developed digital tools independently, leading to duplication.
  • Citizen frustration → services were digital in name, but still required multiple logins and offline steps.
  • Funding pressure → international partners demanded clearer impact in the short term.

The agency wanted to accelerate momentum but struggled to get alignment across ministries.

3. The Sprint

We ran a 14-day Immersive Reinvention Sprint with the agency’s leadership and digital focal points from three ministries.

  • Day 1–3: Intake → Reviewed strategy docs, donor reports, and citizen feedback data.
  • Day 4: Immersive Sprint Session (half-day) → Breakthroughs:
    • Each ministry had different definitions of “digital service.”
    • 20% of budget was going into overlapping pilot projects.
    • Citizens’ top frustrations were known — but not prioritised.
  • Day 5–14: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the biggest blocker wasn’t lack of funding, but lack of shared priorities.

Three practical insights stood out:

  1. One Definition of Digital Service → agreed across ministries.
  2. Quick-Win Prioritisation → focus on top 3 citizen pain points (ID renewal, business registration, healthcare booking).
  3. Shared Resource Map → pool budgets to eliminate duplication.
These changes alone allowed the agency to unlock £75,000 in immediate savings and deliver 2–3 visible improvements in the next quarter — meeting donor expectations and building citizen trust.
5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

  • Readiness → Facilitated inter-ministerial workshops to embed the “one digital service” definition.
  • Foresight → Analysed citizen feedback trends to shape the quick-win roadmap.
  • Growth → Supported the reallocation of funds to joint projects, reducing overlap.
  • Positioning → Crafted a communication plan highlighting early digital wins to donors and citizens.
6. The Results
  • 2 pilot services integrated into the central portal (ID renewal + healthcare booking).
  • Budget savings of £75,000 from eliminating overlapping projects.
  • Citizen satisfaction up modestly → call centre complaints on digital services dropped by 12%.
  • Donor confidence improved → short-term impact report received positive feedback.
The client thought it needed more funding and bigger projects.
The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.

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