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  • ERC
  • 2026-03-29

Europe's Energy Interests and the Authoritarian Trade-Off

Abstract
In response to Russia's full-scale invasion of Ukraine, the European Union has accelerated efforts to diversify its energy supply and reduce structural dependence on Russian gas. Within this strategy, Azerbaijan has emerged as a significant alternative supplier through the Southern Gas Corridor and the 2022 EU-Azerbaijan Memorandum of Understanding, which sets a target of increasing gas exports to 20 bcm annually by 2027. Azerbaijani pipeline gas deliveries to the EU rose from 8.2 bcm in 2021 to 12.8 bcm in 2025, elevating Azerbaijan to the position of the EU's fifth-largest external pipeline supplier. This expansion of energy cooperation has coincided with a pronounced deterioration in Azerbaijan's human rights environment. Since mid-2022, the number of political prisoners has increased substantially, while European institutions-including the European Parliament, the Parliamentary Assembly of the Council of Europe, and the European Court of Human Rights- have documented persistent violations of fundamental freedoms. The article examines the structural tension between the EU's energy security imperatives and its normative commitments to democracy, rule of law, and human rights. It advances the concept of an "authoritarian trade-off," whereby strategic diversification objectives may inadvertently reinforce authoritarian governance in supplier states. The analysis argues that the absence of enforceable conditionality in EU-Azerbaijan energy agreements risks undermining the Union's normative credibility. It concludes that embedding transparency requirements, governance reforms, and human rights conditionality into future energy frameworks is essential for aligning the EU's strategic interests with its foundational values.

Keywords: European Union; Azerbaijan; energy security; energy diversification; Southern Gas Corridor; pipeline gas; foreign policy; authoritarian governance; political repression; petrostate dynamics; human rights conditionality; transparency; rule of law; geopolitical energy strategy.

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About

Economic Research Centre (ERC) is a policy research oriented think tank established in 1999. The Center is conducting regular research on macro-economic policy, including conceptual definitions, calculation, and modeling of alternative macro-economic indicators.

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  • Office Azerbaijan, Baku

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  • Goals and history
  • Strategy Management And Documents
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