The trip is Putin's second to Azerbaijan since he became president in 2000. Azerbaijan is the starting point for a newly completed U.S.-backed pipeline that transports Caspian oil to Western markets, bypassing Russia.
Putin said historic ties between the two ex-Soviet nations would help foster cooperation.
Azerbaijani President Ilham Aliyev noted a steady increase in bilateral trade that exceeded $1 billion last year.
Tomorrow, the two presidents are expected to meet and sign a series of bilateral agreements.
(compiled from agency reports)
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