On the backdrop of the escalation of tensions between Azerbaijan and Armenia, and just two weeks after Azerbaijan’s offensive emptied Nagorno-Karabakh of over 100,000 ethnic Armenians, Israel Aerospace Industries (IAI) and the Azeri space agency Azercosmos announced on Tuesday they have signed an agreement for the sale of two Israeli-developed reconnaissance satellites for the Azersky-2 satellite program.
A picture published on X, formerly known as Twitter, shows IAI CEO Boaz Levy and Azercosmos Chairman Samaddin Asadov signing the agreement. The deal, announced last April, was signed Tuesday within the framework of the 74th International Astronautical Congress held in Baku.
Although Israeli-Azeri defense ties remain discreet, according to the Stockholm International Peace Research Institute the majority of Azerbaijan’s arms imports come from Israel.
A statement issued by the IAI said that “the companies signed on a cooperation agreement for the sale of two of IAI’s cutting-edge multispectral electro-optical satellites,” adding that the “landmark deal represents a significant step forward in space technology and cooperation between the two companies.”
A statement issued by the Azeri Ministry of Digital Development and Transport said that “according to the contract, two satellites will be developed within the framework of the Azersky-2 program. These will be remote Earth observation satellites with high-resolution electro-optical sensors. IAI will design, assemble, integrate and test the first satellite of the satellite cluster with the participation of Azerbaijani experts.”
The Azeri statement noted that Israeli experts will also support Azercosmos in the design of a new satellite development center to be established in Azerbaijan.
The IAI did not offer details on the models of the satellites to be sold to Azerbaijan. It also did not specify whether the satellites would be manufactured in Israel or in Azerbaijan, though the Azeri statement indicates that at least part of the production process will take place in Azerbaijan.
The two countries maintain close relations in security, energy, infrastructure and smart agriculture. Azerbaijan is especially important for Israel because of its strategic location, neighboring Iran. Azerbaijan is also a major oil supplier for Israel. In 2022, it exported more than 2 million tons to Israel, which constituted approximately 40% of Israel’s oil consumption that year.
Reports over the years have claimed that Israel exports weapons to Azerbaijan, though Israel has always declined to confirm that officially. That being said, during his visit to Baku last July, Israel’s Defense Minister Yoav Gallant said, “We discussed important cooperations in the security, intelligence and industrial fields. The visit will strengthen strategic relations and deepen cooperation in many ways.”
Last March, Azerbaijan opened an embassy in Israel. A month later, Israeli Foreign Minister Eli Cohen visited Baku, emphasizing bilateral efforts at deepening the security and strategic alliance between the two countries. In an interview with The Times of Israel shortly after the visit, Cohen confirmed that IAI will supply Azerbaijan with two satellites at a total cost of $120 million.
Israeli lawyer and human rights activist Eitay Mack, considered an expert on Israel’s weapons exports, told Al-Monitor that Israeli authorities do not limit security exports to Azerbaijan. This means that Israeli authorities allow for the export to Azerbaijan of sensitive technologies. It is unclear, he said, whether the satellites now being sold to Azerbaijan are destined for civil or military use, though satellite technologies are considered in general of dual use.
The Israeli Foreign Ministry and the Israeli Defense Ministry both declined to comment on the satellite deal.