The 17th Economic Cooperation Organization (ECO) Summit was recently held in Khankendi, Azerbaijan, under the theme “New ECO Vision for a Sustainable and Climate Resilient Future.” This year’s summit focused on regional cooperation and sustainable development. Countries across South Asia, Central Asia and the South Caucasus are increasingly grappling with non-traditional security threats such as floods, heatwaves and wildfires that underscore the urgent need for coordinated responses. Also, amid unprecedented geopolitical shifts, organizations like ECO are now increasingly being used as instruments of influence by countries like Azerbaijan, Türkiye, Pakistan and Iran.
The summit was chaired by Azerbaijani President Ilham Aliyev. During his speech, he emphasized a renewed vision for regional integration and cooperation based on sustainable development goals. In the joint communique, the member states committed to finalizing the ECO Vision 2026–2035, focusing on climate resilience, clean energy, water management and digital infrastructure. The member states also recognized connectivity and transport as major pillars, with calls to enhance transit corridors and create a unified digital platform to streamline Middle Corridor logistics. As per the communique, the bloc aims to double intra-regional trade by 2035 through trade liberalization, removal of customs barriers and instruments like the ECO Trade and Development Bank. Complementing the agenda of this year’s summit, the First ECO Women Forum was held in Lachin, focusing on the critical role of women in building a sustainable and climate-resilient future. Additionally, bringing together several business enterprises and leaders across ECO member states, the 6th ECO Business Forum was held in Shusha, which focused on strengthening economic ties and promoting intra-regional trade.
This year’s summit highlighted Baku’s efforts to build consensus on contentious and divergent issues. Azerbaijan hosted the summit in Khankendi as a strategic move aligned with its commitment to integrating Nagorno-Karabakh into Azerbaijan amid regional and international concerns. In 2023, after launching a military offensive, Azerbaijani forces regained full control over the region. Despite longstanding disputes, Armenia and Azerbaijan are now pursuing peace, and their foreign ministers met in Washington for a new round of US-mediated talks. Furthermore, Armenia and Azerbaijan held peace talks in the UAE to advance a draft deal, and both countries remain committed to dialogue and diplomatic efforts.
ECO member states are diversifying ties with global powers while investing in regional connectivity. Sanctions on Russia have redirected trade from the Northern Corridor to the Middle Corridor, boosting its importance in Asia-Europe transit. Azerbaijan also used the summit to advance its goal of establishing the Zangezur Corridor linking mainland Azerbaijan to Nakhchivan and Türkiye. The Zangezur Corridor has also acquired greater prominence amid shifts prompted by regional priorities, enhancing regional integration and strengthening Azerbaijan and Türkiye’s logistical roles. However, Iran has maintained its opposition to the project, viewing it as a geopolitical threat that could undermine its influence and embolden Turkish and Azerbaijani ambitions. Tehran supports alternative transit routes that preserve Armenian sovereignty and include Iran in regional connectivity. Senior Iranian adviser Ali Akbar Velayati recently claimed that Iran successfully blocked the corridor, warning of its broader strategic risks.
At the summit, Azerbaijan sought to engage with Iran and de-escalate tensions, particularly following the Israel-Iran war, during which Iran expressed suspicion over Azerbaijan facilitating Israeli operations against it and harboring Israeli spies. Azerbaijan strongly rejected these allegations and urged Iran to refrain from making such claims. Baku claims it adopted a neutral stance but refrained from explicitly condemning the attacks against Iran. Tensions had escalated after Iranian cleric Seyyed Hassan Ameli accused President Aliyev of collaborating with Israel, prompting condemnation from Baku and a diplomatic protest over hostile Iranian media content. Both countries are now trying to reconcile despite past tensions, as evident from recent meetings as well as the joint military drill Aras-2025 in the Karabakh region.
On the sidelines of the summit, leaders held bilateral meetings with counterparts to explore ways to strengthen cooperation, making the summit a platform for advancing regional dialogue. Uzbek President Shavkat Mirziyoyev met Aliyev and discussed ways to enhance cooperation on trade, energy and regional connectivity. Iranian Foreign Minister Abbas Araghchi met his Pakistani counterpart and discussed bilateral issues and reaffirmed their commitment to the ECO’s goals. Pakistani Prime Minister Shehbaz Sharif met Aliyev and signed an agreement worth $2 billion in various sectors of Pakistan’s economy. Sharif also met leaders of Türkiye, Iran and Uzbekistan and discussed prospects to deepen engagement in trade, defense, energy, connectivity and projects like the Trans-Afghan Railway. The Taliban delegation representing Afghanistan, headed by Deputy PM Abdul Ghani Baradar, also attended this year’s summit, marking its first participation in four years, using the platform to urge member states to formally engage with Afghanistan. Baradar emphasized Afghanistan’s role in regional connectivity and stability and praised Russia’s recent recognition as a step toward international legitimacy. On the sidelines of the summit, he also met Azerbaijani Prime Minister Ali Asadov to discuss ways to strengthen ties in trade, transit and humanitarian sectors. Türkiye supported the participation of Northern Cyprus at the summit, using the ECO to further its interests, and Ankara is expected to continue advocating for the de facto recognition of Northern Cyprus through such regional engagements.
Despite growing convergences and shared interests, ECO’s strategic ambitions face certain challenges, like intra-member differences and weak institutional mechanisms. Moreover, shifting geopolitical alignments and recent recalibrations have paved the way for competing and opposing push-and-pull dynamics in the region. ECO member states maintain diverse and, on some issues, divergent relationships with Russia, China and the United States. China plays a central economic role through the Belt and Road Initiative, with strong infrastructure and trade ties across Central Asia, Pakistan and Iran. Despite challenges amid the ongoing Russia-Ukraine war, Russia continues to try and retain its deep strategic influence and security cooperation in Central Asia, rooted in Soviet-era ties, through the Collective Security Treaty Organization (CSTO), energy partnerships and the Eurasian Economic Union (EAEU). However, since the outbreak of the Russia- Ukraine war, Moscow has increasingly faced challenges in the region, including recent tensions with Azerbaijan. Meanwhile, Iran has deepened its ties with Russia and China in recent years, while Türkiye balances NATO membership while engaging with both Moscow and Beijing on economic, political and strategic issues.
According to trade reports, the ECO member countries’ top exports include energy, minerals, metals, agricultural products, textiles and machinery. The leading export destinations are China, followed by EU countries and the United States. This reflects a predominantly resource-driven export profile, and the Central Asian countries have in recent years taken steps to diversify their trade. Kazakhstan continues to pursue a multi-vector foreign policy aimed at enhancing economic cooperation with global and regional powers. Similarly, other ECO member states are also deepening their trade engagement by focusing on expanding export capacity, improving infrastructure and attracting investment.
As ECO member states increasingly recognize their shared challenges, mutual concerns and unique geostrategic advantages, they remain committed to enhancing the region’s potential as a transit hub. In recent years, this has translated into substantial bilateral and joint investments in transport infrastructure and connectivity initiatives, even through other regional organizations like the Organization of Turkic States. Moreover, amid Russia-US tensions and growing uncertainty over US policy in the region, it is crucial to adopt a resilient and coordinated approach among member states. In this context, ECO holds relevance despite internal divergences and challenges related to economic disparity and increasing competition among member states.
