Lithuania champions two-tracked strategy for enhancing Middle Corridor in cooperation with Azerbaijan, Kęstutis Vaškelevičius, the newly-appointed Ambassador Extraordinary and Plenipotentiary of the Republic of Lithuania to Azerbaijan, said in an exclusive interview with Trend.
“Azerbaijan and Lithuania could collaborate to further develop the Middle Corridor along two key tracks. First, Lithuania, as a member of the European Union, supports the Global Gateway initiative. Global Gateway is the EU’s strategy to enhance secure digital, transport, and energy links, while also strengthening international partnerships. The European Union is a crucial partner in this regard, and Lithuania, as an EU member, can play a significant role in supporting Azerbaijan in Brussels. The second track would focus on what our national institutions or companies can contribute to this development,” he said.
Vaškelevičius recalled that last October, the director of Klaipeda Port visited Azerbaijan, including Baku Port and the Alat Free Economic Zone.
“These are key actors in the development of the Middle Corridor. During his visit, they held discussions on how to strengthen their partnership and explore opportunities for future cooperation in both shipbuilding and shipping, which could bring added value to the Middle Corridor. In this context, Klaipeda Port could play an important role in facilitating the growth and efficiency of the corridor,” said the ambassador.
He went on to add that Lithuania has extensive experience, when it comes to connectivity and infrastructure, especially in understanding how they can be used as tools against countries, particularly smaller ones.
“We faced numerous challenges when Russia attempted to use energy as a means of blackmail. I think most, if not all, of Russia’s neighbors are familiar with how Moscow employs not only energy and infrastructure but even food exports as leverage. For instance, if a neighboring country tries to pursue an independent policy that Russia disapproves of, it’s not uncommon for the veterinary services to suddenly "discover" issues with that country’s products the very next day. In this context, Lithuania has been at the forefront of efforts to achieve energy independence. We took proactive steps to construct transport and energy links that would reduce our reliance on Russia,” said Vaškelevičius.
He pointed out that Lithuania was the first country in the European Union to achieve full energy independence from Russia, covering both gas and oil.
“We built one of the first LNG terminals in Klaipeda and constructed an oil terminal, paving the way for alternative energy routes. From our own experience, we understand the critical importance of developing routes that are not dependent on authoritarian or aggressive states. In this context, we view initiatives like TRACECA, the Middle Corridor, and the Southern Gas Corridor as vital projects. These not only enhance security for the regions and countries involved but also bring greater prosperity to their people. It is essential that these corridors—whether for energy or transport—are used to advance economic relations, strengthen economies, and support businesses, rather than being exploited for political purposes. For businesses and economies to thrive, it is crucial that these links and corridors operate based on economic logic, not political agendas,” said the envoy.
In this context, he believes it is crucial to develop corridors that are independent and serve as alternatives to those on which both Asia and Europe have relied for so many decades.
“Unfortunately, this longstanding dependence not only generated significant economic benefits for certain actors but also had profound economic and political consequences.”
Investment opportunities
Talking about the investment opportunities, the ambassador mainly focused on renewables and agriculture.
“Regarding Karabakh, we see that some Lithuanian companies are interested in the region, with an investment made last year by the furniture company Dominari. In terms of sectors of interest, I believe energy, especially renewable energy, is a key area for cooperation. This sector brings significant benefits to both sides, and Azerbaijan is one of the most active countries in pursuing the economic opportunities presented by renewable energy, especially with the presidency of COP29. Lithuania can contribute its expertise in this area. While we may not have vast financial resources to offer, we can provide valuable know-how. Lithuania has undergone a remarkable transition since independence, moving from 100% dependence on Soviet oil and gas to energy independence. Next month, Lithuania will complete its transition to full independence from Russia, with our electricity system being connected to the European grid on February 8. Before, we already built electricity connections to Poland and DC cables to Sweden,” said Vaškelevičius.
He pointed out that infrastructure development is crucial when Azerbaijan is planning to develop renewables.
“While it's possible to build renewable energy sites, it's equally important to think about how to connect them to the grid. Renewables are especially challenging because their output fluctuates depending on factors like wind and sunlight. Lithuania's experience in overcoming such challenges could be very valuable for Azerbaijan as it pursues its renewable energy goals,” said the envoy.
The Lithuanian ambassador believes the agricultural sector is very important.
“I don't think Azerbaijan has fully utilized its capacity to export its products to the global market. Lithuania exports a wide range of products, from dairy items like milk, yogurt, and cheese, to bread, reaching markets worldwide, including Japan, which is a significant export market. It's a complex and extensive logistics chain. We incorporated many innovative solutions and modernized the process, especially in how to package products to keep them fresh, even months after being opened, in remote markets around the world. This is an area where Azerbaijan can also benefit from such expertise. There are considerable untapped opportunities. Now, it’s up to business-to-business cooperation, and part of my role is to identify where our interests align and where we can create mutually beneficial partnerships,” he said.
Vaškelevičius also mentioned another initiative that he believes could be significant for Azerbaijan's climate-friendly policies: the deposit system for recycling.
“Lithuania is a global leader in recycling plastic bottles, and we have developed an extremely efficient deposit system. For every drink, juice, or water bottle purchased, people pay an additional 10 euro cents. When they return the empty bottle to the system, they get that 10 cents back. As a result, we have achieved a 95 percent return rate. This system works for both environmental and financial motivation. For some, it's about being conscious of nature and doing the right thing, but for others, it's a financial incentive to return the bottles. This is a policy that directly contributes to protecting the environment. I know Azerbaijan is very interested in such initiatives, and we are ready to share our experience in implementing a system that functions almost at 100 percent efficiency,” he explained.