US Shifts Policy on Azerbaijan, Lifting Key Sanctions Amid Strategic Realignment in South Caucasus
According to the International Desk of Webangah News Agency, the US Congress has moved to permanently abolish Section 907 sanctions against Azerbaijan, a Cold War-era restriction that had limited direct government aid to Baku since 1992. This historic decision comes after President Donald Trump’s annual waiver of the sanctions in 2025, culminating a three-decade process that reflects Azerbaijan’s transformed geopolitical role.
The removal of Section907 follows Azerbaijan’s strategic positioning as a critical energy partner for Europe following Russia’s invasion of Ukraine, with Baku emerging as the sole non-Russian gas exporter with ready infrastructure to European markets. The Southern Gas Corridor (SCP-TANAP-TAP) has become instrumental in this realignment, receiving explicit US support for expanded Azerbaijani gas exports and Western investment in the Shah Deniz field.
Analysts note the decision formalizes Azerbaijan’s evolution through three distinct eras of US relations: initial post-Soviet tensions (1990s), post-9/11 security cooperation (2000s), and current energy-centered strategic alignment (post-2022). The trilateral US-Azerbaijan-Israel partnership has particularly intensified, with Baku serving as Tel Aviv’s primary energy supplier and intelligence partner in the region.
For Iran, the sanctions lift carries multidimensional consequences. The Islamic Republic faces diminished strategic depth along its northern borders as Azerbaijan solidifies ties with Western powers. Security analysts warn of increased Western-Israeli intelligence operations along Iran’s northwestern frontier, while energy experts highlight the erosion of Iran’s potential as a regional transit hub due to strengthened non-Iranian corridors.
The policy shift coincides with Azerbaijan’s enhanced military capabilities following its 2020 victory in Nagorno-Karabakh, with US defense cooperation now legally unconstrained. Regional observers suggest this may accelerate Baku’s efforts to reduce Russian peacekeeping presence in the region while increasing its strategic autonomy.
