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Abstract
In the 21st century, the relations between states are being shaped by factors deriving from the national interest and the national security agenda. Many countries have shifted their foreign policies towards an economization strategy, i.e. assigning a particular importance to the economic priorities and instruments in foreign policy, as in the case of the small state of Azerbaijan, bordered by large neighbors and influenced by yet larger powers. Before Azerbaijan’s independence, Regional powers such as Russia, Turkey and Iran were active and after the independence, the US and EU, added to the competition over the rich oil and natural gas resources of the Caspian region. All of these countries created an external pressure and influence in Azerbaijan, turning the Caucasus region into a new playing field of the Great Power Game. Thus, the geopolitical ambiguity combined with oil and gas resources and further with geographical imperatives will shape and pose challenge to the country’s foreign policy.