Germany's Merz and Azerbaijan's Aliyev sign gas and oil deal

German Chancellor Friedrich Merz and Azerbaijani President Ilham Aliyev signed a gas and oil supply deal during a meeting in Berlin on Tuesday.

The two leaders also set up a joint economic council to deepen ties between Germany and the authoritarian South Caucasus republic.

Merz said Azerbaijan is one of the few countries in the region with a surplus of energy resources, making it "an interesting partner" for helping to secure Germany's energy supply.

Since Russia's full-scale invasion of Ukraine, Germany has sought to end its dependence on Russian natural gas and has been looking for alternative sources of supply.

Azerbaijani natural gas has been flowing to Germany since the beginning of the year. Current agreements provide for annual deliveries of 1.5 billion cubic metres of gas.

During his visit to Berlin, Aliyev indicated that Azerbaijan could supply larger volumes in the future. However, he said doing so would require the construction of additional pipeline infrastructure.