In the document, Vladimir Putin and Ilkham Aliyev said the countries' governments must set out a program for cooperation in the military sphere that would not be aimed against third parties or run counter to the two countries' international commitments. They also ordered legal improvements to advance military-technical contacts.
Azerbaijan had earlier denied reports that it would double the rent for the radar station on its territory leased by Russia.
Russia leases the Gabala radar station from the South Caucasus republic. It has a range of about 6,000 kilometers (3,700 miles) and allows Russia's Space Forces to monitor launches of intercontinental ballistic and other missiles in the Middle and Far East and part of the African continent. Its personnel comprises 1,400 servicemen.
Putin and Aliyev also confirmed their plans to step up efforts against international terrorism, and drugs and arms trafficking, and ordered their security services ensure more effective coordination in these spheres.
They agreed to complete the delimitation of the Russian-Azerbaijani border, the effort that includes the need to determine the legal status of the hydrocarbon resources-rich Caspian Sea, to which both countries have access.
The common border, the presidents said, "must remain a border of friendship and cooperation."
The leaders reaffirmed their respect for the sovereignty and territorial integrity of countries, and other principles stipulated in international law.
"In this context, the presidents urged for the political settlement of the Nagorny Karabakh conflict in line with the relevant UN Security Council resolutions and decisions by the OSCE [Organization for Security and Cooperation in Europe] and its Minsk Group of mediators - Russia, the U.S., and France," the statement said.
The conflict between the former Soviet republics of Armenia and Azerbaijan over Karabakh, an Azerbaijani territory with a majority Armenian population, first erupted in 1988, when the region claimed independence from Azerbaijan to join Armenia. It evolved into a bloody war in 1992-1994 after the collapse of the Soviet Union.
Over 30,000 people are believed to have died on both sides between 1988 and 1994, and over 100 others died after a ceasefire was concluded in 1994.
Azerbaijan is worried by the future redeployment of Russian troops and military equipment from a base in Georgia to Armenia. Russia has a base in Armenia as part of a joint air defense system of the Commonwealth of Independent States (CIS), a loose association of former Soviet republics, which was deployed there in 1995.
The presidents' statement also touched on the economic aspects of Russian-Azerbaijani cooperation, such as the joint use of national and international transport infrastructure facilities and measures to advance the North-South transport corridor, stretching from India across the Caspian Sea to northern Europe.
Putin arrived in Azerbaijan to open Year of Russia in the Caucasus republic. He is being accompanied by about 500 officials, prominent businessmen, and cultural figures who will take part in business talks, forums, exhibitions, and various cultural events to mark the opening of Year of Russia.
