Azerbaijan Shifts Away from Israel as US Firm Ondas Gains Ground in Defense Deals
The longstanding security relationship between Israel and Azerbaijan, once strengthened by the personal rapport between Prime Minister Benjamin Netanyahu and President Ilham Aliyev, is showing signs of strain. In recent months, Azerbaijan has increasingly criticized Israel, aligning more closely with Turkey and the Palestinian Authority, which has raised concerns within Israeli defense industries. The volume of Israeli defense purchases by Baku is shrinking amid intensifying global competition.
Two major deals currently test this partnership: a missile systems agreement and a satellite communications tender. Israel recently closed a government-to-government deal supplying Rafael-made Spike tactical missiles and torpedoes worth hundreds of millions of dollars. However, American defense companies, including Lockheed Martin, Boeing, RTX, and notably Ondas, led by former Mossad chief Dedi Barnea and staffed with Israeli veterans familiar with Azerbaijan, are aggressively pursuing the Azerbaijani market. Ondas benefits from established local ties and views Azerbaijan as a key target following the lifting of the US arms embargo after the Armenia-Azerbaijan peace framework.
South Korea also competes for Azerbaijan’s defense contracts, offering frigates equipped with Seoul-made systems, potentially reducing demand for Israeli technology. Diplomatic tensions have escalated since Israel’s government recognized the Armenian genocide, provoking sharp Azerbaijani condemnation and a halt to official recognition in the Knesset. Azerbaijan has since deepened ties with the Palestinians, with President Aliyev hosting Palestinian Prime Minister Mohammed Mustafa and pledging economic support to the Palestinian embassy in Baku. Analysts note Azerbaijan’s strategic alignment with Turkey, emphasizing "one nation, two states," and suggest that if forced to choose, Azerbaijan would side with Turkey over Israel.
Public opinion in Azerbaijan has grown more pro-Turkish and critical of Israel’s military actions, though officials maintain diplomatic restraint. Israeli defense officials acknowledge polite criticism but worry about its durability. Meanwhile, Azerbaijan is reducing reliance on Israeli systems by developing domestic production and purchasing from Turkey. A key satellite communications tender worth $300-$800 million remains unresolved, with Israel Aerospace Industries among four finalists competing against French-Italian and Turkish firms. Despite delays, Israel’s technological leadership and longstanding relationship with Baku make it a strong contender. In October 2023, Israel Aerospace Industries signed a $120 million deal to supply two OptSat500 satellites to Azerbaijan’s Azercosmos agency. Official responses from Israel’s defense ministry, Rafael, and Ondas were not provided.
Summary: Azerbaijan’s security ties with Israel are cooling amid closer relations with Turkey and the Palestinians, while US company Ondas, led by former Israeli officials, expands its defense presence. Major defense deals face stiff competition from US, Turkish, and South Korean firms, and a critical satellite tender remains pending as Azerbaijan diversifies its military suppliers.
