AGP Executive Report

AI on-device push: Apple is reportedly testing PrismML tech that compresses advanced AI models so they can run directly on iPhones, aiming for faster, more private Siri-style features without heavy cloud use. Digital economy rules: Azerbaijan’s parliament approved tax and legal amendments to formalize the digital economy, including definitions for AI, cybersecurity and cloud services, plus tax relief for freelancers and “digital nomads.” Cybersecurity enforcement: Azerbaijan introduces fines for violations of cybersecurity requirements, tightening compliance expectations for organizations. Energy connectivity & security: The EU approved the Black Sea submarine electricity cable to carry renewable power from Azerbaijan via Georgia into the EU grid, while critics warn NATO/EU lack a dedicated security system against sabotage. OPEC+ coordination in Baku: Azerbaijan hosted the first technical committee meeting of the OPEC+ Charter of Cooperation, focusing on market stability, technology and investment. Archaeology in Yardimli: A joint Azerbaijani-US expedition uncovered remains of a 2,200-year-old Atropatene-era urban settlement, adding new data on ancient production and structures. Tech & standards ties: Azerbaijan and Slovakia signed an MoU to expand cooperation in standardization, metrology, technical regulation and accreditation. Startup funding policy: Azerbaijan plans tax incentives for taxpayers holding Startup Certificates, supporting early-stage tech growth. Geopolitics affecting energy: A US Senate bill proposes up to 100% tariffs on major buyers of Russian oil, naming Azerbaijan among the targeted countries. Media cooperation: AZERTAC and Italy’s Adnkronos signed an agreement to expand news exchange and collaborate on emerging media technologies, including AI.

Azerbaijan Digital Economy Push: The Milli Majlis approved tax and legal amendments to formalize and incentivize digital tech, AI, cybersecurity, and crowdfunding, including tax relief for registered freelancers and “digital nomads,” plus new fines for cybersecurity requirement violations. Privacy-First AI on Phones: Apple is reportedly testing PrismML tech that compresses advanced AI models so they can run more directly on iPhones, aiming for faster, more private on-device Siri-style features. Space & Launch Watch: SpaceX set Starship Flight 13 for July 16/17 Baku time, targeting a first attempt to deploy a real payload into orbit with upgraded V3 hardware. Energy Corridor Diplomacy: OPEC+ Charter of Cooperation’s technical committee held its first meeting in Baku, with Azerbaijan stressing energy security through reliable connectivity and partnerships. US-Azerbaijan Tech/Trade Finance: A Russian-born investor, Konstantin Sokolov, was appointed to lead the U.S. State Department’s TRIPP+ fund overseeing $200m+ for transport, energy infrastructure, and critical minerals across the South Caucasus and Central Asia. Science From the Milky Way: Astronomers reported the first true sugar found in interstellar space, a potential clue to how life’s building blocks formed. Media Cooperation: AZERTAC and Italy’s Adnkronos signed a news exchange MoU, including collaboration on emerging media technologies like AI. Security & Justice: Azerbaijan agreed to extradite a Pakistani citizen accused of cyber-enabled financial fraud, while the UK moved to expand “state threats” rules that could sharply raise prison risks for journalists and aid workers.

Cybersecurity & Privacy: Azerbaijan is introducing fines for failures to meet cybersecurity requirements, including delays in incident response and reporting, as lawmakers move to tighten rules for critical infrastructure and hosting providers. Startup & Digital Economy: The Milli Majlis adopted tax relief measures for taxpayers holding Startup Certificates and extended incentives for digital nomads, aiming to reduce freezes on outgoing transactions and clarify tax treatment for remote tech work. Space & Tech Ambitions: SpaceX says Starship Flight 13 is set for July 16 (Baku time July 17), with an upgraded V3 test and a first attempt to deploy real payloads into orbit. Science Discovery: Astronomers report the first true sugar found in interstellar space near the Milky Way’s galactic center, adding to origin-of-life research. Media Cooperation & AI Literacy: Oman’s ONA and Azerbaijan’s AZERTAC signed an MoU to exchange news and training, while Azerbaijan’s Shusha Global Media Forum highlighted AI’s role in journalism and the need to fight disinformation. Regional Infrastructure: Azerbaijan and Slovakia leaders inspected Bash Garvand village progress in Aghdam and laid groundwork for a new 840-student school, alongside broader ties in energy and transport.

Azerbaijan–Slovakia Reconstruction & Education: Presidents Ilham Aliyev and Peter Pellegrini inspected Bash Garvand village in Aghdam and laid the foundation stone for the Milan Rastislav Štefánik Secondary School for 840 students, alongside major upgrades to roads, utilities and social infrastructure. Shusha Global Media Forum: Azerbaijan pushed a tech-and-trust agenda at the 4th Shusha Global Media Forum, with panels on AI in journalism, visual storytelling and combating disinformation; Hikmet Hajiyev warned that proving truth is harder as major platforms can amplify falsehoods. Media Cooperation Deals: AZERTAC and Oman News Agency signed an MoU to exchange news, photos, video and training, while Azerbaijan also discussed cooperation with TikTok and LinkedIn on digital governance and child online protection. Digital Platform Enforcement: TikTok said 3.6m videos were removed in Azerbaijan last year for rule violations, and 600,000+ more were taken down in the first half of 2026, with AI used for most moderation. Finance Innovation: Parliament’s first reading of a draft crowdfunding law signals a shift beyond bank-only funding for startups and tech entrepreneurs. Tech & Security Research: A moisture-activated stretchable battery was reported as a potential “kill switch” for IoT sensors by permanently disabling devices when exposed to water.

Azerbaijan–D-8 Media Push: At the 4th Shusha Global Media Forum, Hikmet Hajiyev backed the new D-8 Media Excellence Center, saying it’s already “fully functional” and should help member states use new media tech and training to tackle today’s information challenges. Digital Governance & Safety: Hajiyev also met TikTok and LinkedIn officials in Shusha, focusing on expanding cooperation and implementing Azerbaijan’s rules to better protect children online; TikTok says 3.6m videos were removed in Azerbaijan last year, with AI used for most moderation. Tech in Industry: Honda rolled out an internal AI bonus and certification ladder for employees, aiming to scale AI adoption across manufacturing and business operations. Energy & Connectivity Diplomacy: Slovakia’s President Peter Pellegrini is visiting Azerbaijan, with talks planned on energy cooperation, industrial and technology ties, and transport links, including a stop at the Smart Village project in Agdam. Customs Modernization: Azerbaijan’s FM Jeyhun Bayramov met the WCO chief to discuss digital customs systems, border security, and trade facilitation along major corridors. Environment Watch: New research flags drought and desertification risks in Azerbaijan, pointing to climate change plus water and land mismanagement.

Digital Governance & Media: At the 4th Shusha Global Media Forum, Hikmat Hajiyev met TikTok and LinkedIn officials to discuss expanding cooperation and implementing Azerbaijan’s child online protection rules, while TikTok’s Diana Ryan said 3.6 million videos were removed in Azerbaijan last year and over 60% of moderation is AI-assisted. Regional Tech Diplomacy: D-8 Secretary-General Sohail Mahmood said the D-8 Media Excellence Center is expected to start operations soon, with training, research and new technology adoption planned. Energy & Connectivity Talks: Slovakia’s President Peter Pellegrini begins an official visit to Azerbaijan, with talks focused on energy cooperation, industrial and technological collaboration, transport links, and possible Slovak involvement in reconstruction projects. Customs Modernization: Azerbaijan FM Jeyhun Bayramov met WCO Secretary General Ian Saunders on customs digitalization, border security, illicit trade control, and supply-chain resilience. Health & Education Cooperation: Prime Minister Ali Asadov met Russia’s health minister on healthcare, medical education and science ties, highlighting the Baku branch of I.M. Sechenov University. Biotech Access: Santhera expanded its AGAMREE® distribution deal via Biomedica to add Georgia, Kazakhstan, Belarus, Azerbaijan and Uzbekistan for Duchenne muscular dystrophy. Human Rights: Reports say researcher Iqbal Abilov was tortured in Baku pre-trial detention; his defense plans an ECHR complaint. Azerbaijan Tech in Aviation: Azerbaijan Airlines signed an Amadeus deal to deploy revenue management, shopping and distribution tools to speed digital transformation. Environment Research: Scientists at Azerbaijan’s Institute of Geography are studying drought and desertification drivers, including climate change, water depletion and land-use pressures.

Aviation Tech: Azerbaijan Airlines signed an Amadeus deal to roll out revenue management, shopping and distribution tools, aiming to speed up its digital transformation and improve smarter pricing and ticket sales. Biomedicine Access: Santhera expanded its Biomedica distribution agreement for AGAMREE® (vamorolone), adding Azerbaijan (along with Georgia, Kazakhstan, Belarus and Uzbekistan) to extend Duchenne muscular dystrophy treatment availability. Digital Privacy Research: A new moisture-activated stretchable battery concept could act as a “kill switch” for IoT sensors by permanently disabling devices when exposed to water, targeting privacy risks from always-on monitoring. Energy & Infrastructure: Ilham Aliyev joined the inauguration of new hydroelectric stations on the Hochaz River in Lachin, supporting Azerbaijan’s push for a green energy zone in Garabagh and East Zangezur. Tech & Travel Business: VOYAGE 1 was integrated with Tourism Futures.AI after a majority stake acquisition, with plans to expand destination management using AI-driven customer acquisition across multiple regions. Science & Heritage: Researchers reported a mysterious polished stone sphere found in Azerbaijan, adding a rare Neolithic artefact with unclear purpose to South Caucasus archaeology.

Azerbaijan Airlines + Amadeus Deal: AZAL signed with Amadeus to roll out revenue management, shopping and distribution tools, pushing faster digital transformation and smarter pricing. IoT Privacy Tech: Researchers unveiled a moisture-activated stretchable battery designed to permanently disable surveillance-style IoT sensors when exposed to water, aiming to protect user privacy. Archaeology in Azerbaijan: Excavations at Jalilabad’s Pasha Tepe uncovered a rare polished stone sphere from the Neolithic period, with researchers saying it has no known South Caucasus parallels. Energy in Lachin: Ilham Aliyev joined the inauguration of new hydroelectric stations on the Hochaz River (Aghbulag-1, Aghbulag-2, Sheylanli), supporting Azerbaijan’s green energy push for the region. Regional Connectivity: AECOM surveyed the TRIPP site in Armenia to support railway and infrastructure for connectivity and regional integration. Media & Decolonization: The Baku Initiative Group launched a Burkina Faso institutional MoU tied to joint research, training and decolonization-focused cooperation. EU Tech Regulation: The European Commission urged Meta to change Instagram/Facebook design features linked to harmful engagement, warning of major fines under the Digital Services Act.

Stretchable IoT Kill Switch: Researchers report a moisture-activated, stretchable battery that disintegrates when exposed to water, designed to permanently disable surveillance sensors and boost privacy control. Fiscal Resilience: Azerbaijan’s external public debt fell to $4.6168bn as of July 1, 2026, down 7.9% year-on-year, as the state retired nearly $396m in foreign liabilities. Green Power in Lachin: Ilham Aliyev joined the inauguration of three hydroelectric stations on the Hochaz River, with additional capacity under construction to support a green energy push. Azerbaijan–Zimbabwe Energy Links: Zimbabwe’s parliament speaker met Azerbaijan’s energy minister and SOCAR executives to explore energy security, technology transfer, and renewables. Archaeology in Jalilabad: Excavations uncovered a rare polished stone sphere from the Neolithic period, potentially unique for the South Caucasus. Baku Media & Decolonization: The Baku Initiative Group opened a conference on media and decolonization and signed its first institutional MoU with Burkina Faso’s foreign ministry research institute. Digital & AI Engagement: Azercell announced AI developer training with AWS, while Azerbaijan’s digital sovereignty push continues in OSCE forums. Cultural Heritage Tech: Azerbaijan’s heritage protection agency won an international award for public engagement, including digital services via the MyCulture portal. Energy Tech Diplomacy: A SOCAR–Technip Energies Italy MoU targets petrochemical decarbonisation and green energy cooperation. Defense Tech Abroad: The Pentagon awarded contracts for high-energy laser systems to counter drones and cruise missiles.

Moisture-Activated Stretchable Battery: Researchers report a moisture-triggered, self-disabling stretchable battery that could act as a “kill switch” for privacy-sensitive IoT sensors. Energy & Infrastructure: President Ilham Aliyev inaugurated new hydroelectric stations on the Hochaz River in Lachin via video link, supporting Azerbaijan’s push for a green energy zone in Garabagh and East Zangezur. Digital Transformation in Transport: Azerbaijan Airlines signed with Amadeus to roll out revenue management, shopping, and distribution tools to speed up its digital modernization. AI & Skills Training: Azercell expanded AI developer training with Amazon Web Services, aiming to grow local digital capabilities. Cultural Tech & Heritage Management: Azerbaijan’s heritage protection agency won an international award for public engagement, including digital services via the MyCulture portal and improved heritage databases. Regional Tech & Trade Corridors: Transport costs on the Middle Corridor are rising, with China-to-Azerbaijan container tariffs up nearly $500 since early 2026, reflecting regional instability. Defense Tech Watch: The Pentagon awarded contracts for high-energy laser systems to counter drones and cruise missiles under the JLWS program. Media & Decolonization: Baku hosted an international “Media and Decolonization” conference, with the Baku Initiative Group signing a Burkina Faso institutional MoU.

Moisture-Activated Battery: Researchers unveiled a stretchable, moisture-triggered battery that disintegrates on contact with water, designed to permanently disable IoT sensors—aimed at privacy protection for surveillance-style devices. EU Tech Regulation: The European Commission urged Meta to change Instagram/Facebook design under the Digital Services Act, targeting infinite scrolling, autoplay and engagement-focused recommendations, with possible fines up to 6% of global revenue. Azerbaijan–US Tech & AI: Azerbaijan’s deputy foreign minister met U.S. leaders and tech firms, including NVIDIA, discussing cooperation in technology, innovation and AI for public administration. Azerbaijan–China Science Ties: ANAS head Isa Habibbeyli met Hebei Academy officials in China to expand joint research, including a “China in Azerbaijani Literature” project. Azerbaijan Airlines Digital Push: AZAL signed with Amadeus to deploy revenue management, shopping and distribution tools to speed up its digital transformation. Defense Tech Partnership: Azerbaijan’s defense ministry met Baykar leadership in Baku to deepen UAV, electronic warfare and next-gen unmanned platform cooperation. Regional Transit & Logistics: Middle Corridor container shipping costs from China to Europe rose sharply in 2026 amid Middle East instability, with rates to Azerbaijan’s Alyat port climbing by nearly $500 over four months. Cultural Heritage Digitization: Azerbaijan’s cultural heritage protection service won an international award for public engagement, digital services and its MyCulture portal. TRIPP Infrastructure Survey: AECOM and Armenian counterparts surveyed the TRIPP corridor site for rail and related infrastructure planning.

Azerbaijan–China Science Ties: ANAS president Isa Habibbeyli met Hebei Academy of Social Sciences leaders in Shijiazhuang, pushing new joint research initiatives including “China in Azerbaijani Literature.” Baku–Washington Tech & AI: Azerbaijan’s deputy foreign minister visited Utah and California, meeting NVIDIA and discussing AI in public administration and digital transformation. Energy Decarbonisation Deal: SOCAR and Technip Energies Italy signed an MoU to explore petrochemical modernization, green energy and decarbonisation cooperation. Heritage Goes Digital: Azerbaijan’s cultural heritage protection agency won an international award for public engagement, digitalization and its MyCulture portal. Airline Digital Upgrade: Azerbaijan Airlines signed with Amadeus to deploy revenue management, shopping and distribution tools. Defense Cooperation: Baykar chairman Selçuk Bayraktar met President Ilham Aliyev; Azerbaijan’s Defense Minister also met Bayraktar to expand UAV, electronic warfare and autonomous systems cooperation. Logistics Watch: Middle Corridor container shipping costs from China to Europe rose in 2026 amid regional instability. AI Skills at Azercell: Azercell ran AWS-led AI training workshops for engineering and product teams. TRIPP Infrastructure Survey: AECOM teams surveyed the TRIPP rail/infrastructure site in Armenia, tied to the planned corridor linking Azerbaijan to Nakhchivan. Culture & Community: “Stone Chronicle of Karabakh” photography competition was announced, and Vagif Poetry Days set for July 16–18 in Gazakh and Shusha.

AI Training for Telecom Teams: Azercell ran AWS-led workshops to boost practical AI skills across engineering, product, and technology teams, using an AI-driven development life cycle approach. Digital Access for AI Users: Bakcell launched a campaign giving subscribers free monthly internet traffic to use major AI platforms like ChatGPT, Claude, DeepSeek, and Perplexity. Energy & Industry MoU: SOCAR and Technip Energies Italy signed an MoU to expand petrochemicals, energy efficiency, and low-carbon tech cooperation, including work tied to the Petkim Master Plan. Cultural Law Milestone: Azerbaijan held the first master’s thesis defenses in cultural law at Baku State University’s new specialization, aimed at training legal experts for heritage protection and cultural property safeguarding. Regional Tech & Trade Talks: Azerbaijan and Turkmenistan advanced economic cooperation through the Turkmen-Azerbaijani intergovernmental commission, with attention to trade growth and “advanced technologies.” New Materials for Privacy: Researchers reported a moisture-activated stretchable battery designed to permanently disable IoT sensors when exposed to water, targeting privacy risks from connected devices.

AI Skills for Industry: Azercell teamed up with Amazon Web Services to run AI developer training for engineering, product and technology teams, focusing on AI-assisted software development methods. Energy & Tech Partnerships: SOCAR and Technip Energies Italy signed an MoU to expand petrochemical, energy-efficiency and low-carbon cooperation, including green energy and decarbonization work under the Petkim Master Plan. Digital & Research Milestone: Azerbaijan held the first master’s thesis defenses in cultural law at Baku State University’s new specialization, aiming to build legal expertise for protecting cultural heritage and assets. Regional Economic Cooperation: Turkmenistan and Azerbaijan advanced economic ties through the 9th Joint Intergovernmental Commission meeting in Ashgabat, with talks on trade growth and cooperation in advanced technologies. Diplomacy & People-to-People Links: Jordan and Azerbaijan’s foreign ministers discussed expanding economic, energy, investment and tourism cooperation, signing a visa waiver MoU and an energy-sector agreement. IoT Security Research: A new moisture-activated stretchable battery concept could act as a self-disabling “kill switch” for privacy-sensitive IoT surveillance devices.

Privacy Tech: Researchers report a moisture-activated stretchable battery that can permanently disable IoT sensors after water exposure, aiming to give users a “kill switch” against unwanted tracking. Smart Agriculture Trade: Korea’s AgroSolution Korea signed a $2.6m deal to export a vertical smart farm factory platform to the UAE, as Gulf states push to localize food production amid Hormuz-linked risks. Regional Economic Ties: Azerbaijan and Turkmenistan advanced cooperation at the 9th Intergovernmental Commission meeting in Ashgabat, with talks on trade, investment, oil & gas, power, transport corridors, and advanced technologies. Foreign Policy & Mobility: Jordan’s FM met Azerbaijan’s FM in Baku, agreeing on expanded economic/energy/tourism cooperation, a visa waiver, and an energy-sector MoU. Energy + Digital: SOCAR met Zimbabwe’s parliament speaker to discuss energy collaboration, including SOCAR’s “green” agenda and digital transformation plans like data centers and AI. Cultural Heritage Tech: Azerbaijan’s State Service won an international prize for digitizing cultural heritage and running citizen-centered “one-stop shop” services via the MyCulture portal. Diplomacy Narrative: A commentary marks Azerbaijan’s Diplomatic Service Day, stressing diplomacy as long, precise work that shapes how the state is understood abroad.

Privacy Tech: Researchers report a moisture-activated, stretchable battery that can permanently disable IoT surveillance sensors once exposed to water—aimed at giving users a “kill switch” for privacy-sensitive devices. Defense & Drones: Zelensky signed drone cooperation deals with Denmark, Estonia, and the Netherlands, bringing Ukraine’s total drone accords to nine; the agreements focus on joint production and export transparency. Energy & Digitalization: SOCAR met Zimbabwe’s parliament speaker to discuss energy cooperation, highlighting a “green” agenda and digital transformation plans including data centers and AI. AI Controls: China is considering restricting foreign access to advanced AI models, with talks involving major tech firms—potentially reshaping global AI availability. Finance Tech: Baku hosted the International Finance & Banking Summit 2026, spotlighting AI in banking, tokenized payments, fraud prevention, and cybersecurity. Azerbaijan Tech Policy: Azerbaijan and the Council of Europe reviewed long-term justice and legal cooperation, with priorities including judicial expertise, probation, enforcement, legal education, and legal research. International Trade/Logistics: Georgia’s Anaklia port model shifts toward a landlord approach after China’s exit, raising questions for Middle Corridor transit.