International Journal of Energy Economics and Policy Vol. 5, No. 1, 2015, pp.27-44 ISSN: 2146-4553 www.econjournals.com Turkey-Azerbaijan Energy Relations: A Political and Economic Analysis Cagla Gul YESEVI Faculty of Economics and Administrative Sciences, Istanbul Kültür University, Istanbul, Turkey. Email:
[email protected] Burcu Yavuz TIFTIKCIGIL Faculty of Economics, Administrative and Social Sciences, Gedik University, Istanbul, Turkey. Email:
[email protected] ABSTRACT: It is now widely recognized that Turkey-Azerbaijan relations have always been strong and described with the phrase "one nation with two states”. This paper is concerned with economic and political nature of Turkey-Azerbaijan relations. Initially, the evolution of Turkish- Azerbaijani relations after the independence of Azerbaijan has been examined. This paper gives an overview of the impacts of Nagorno-Karabagh issue and efforts to normalize the relations between Turkey and Armenia on relations between Turkey and Azerbaijan. Energy has a special place in the relationship between the two countries. Azerbaijan’s economy, energy sectors of Azerbaijan and Turkey has been assessed. Moreover, this paper gives a comparative analysis on economic relationship between Turkey and Azerbaijan. This study finally discusses the main trends and contributions of energy projects on Turkey-Azerbaijan relations. Keywords: Turkey; Azerbaijan; Politics; Economy; Energy JEL Classifications: O57; Q41; Q43; Q48 1. Introduction Turkey has distanced itself from the Turkic people of Soviet Union, with whom it has ethnic and language affiliations, since its establishment. The primary aim was determined as the prevention of the spread of communism within the country and Turanist movements were not supported.