EU launches connectivity and communities support programmes for peace in the South Caucasus

On 1 July in Baku, European Commission President Ursula von der Leyen, together with Commissioner for Enlargement Marta Kos, met with the President of Azerbaijan, Ilham Aliyev, to discuss ways to foster peace in the region through greater connectivity and support to border communities. They also discussed bilateral EU-Azerbaijan trade and energy partnerships.

“Our ‘Peace through Connectivity Package’ will help build a peaceful and prosperous future for the South Caucasus,” von der Leyen said. “With up to €200 million of grant funding, leveraging up to €2 billion of investments in connecting the region, fostering partnership and creating a lasting culture of peace between Azerbaijan and Armenia. Together, we can turn peace on paper into peace in practice.”

During the visit, von der Leyen unveiled concrete actions to advance regional cooperation and initiatives to anchor Azerbaijan in the Connectivity Agenda. To support this ambition, the President announced a Global Gateway investment package of up to €200 million for connectivity projects across the South Caucasus. 

An additional €20 million will be dedicated to a peace-fostering programme for local populations in both Armenia and Azerbaijan. This funding will support local communities in Armenia and Azerbaijan through peace-fostering investments in healthcare, demining, skills development and local businesses, helping ensure that people experience the tangible benefits of peace in their everyday lives.

The High-Level EU-Azerbaijan Connectivity Dialogue, covering transport, energy and digital connectivity, will further support this Partnership by ensuring strategic coordination and monitoring progress. It will be supported with the EU’s new Connectivity for Peace investment package of up to €200 million, which has the potential to mobilise up to €2 billion in public and private investment.

In Azerbaijan, the EU is committed to the development of the Nakhchivan railway project, a strategic investment that will improve mobility and economic flows across Azerbaijan and the wider region. The European Union and Azerbaijan with the European Bank for Reconstruction and Development launched a feasibility study for the development of the project in January 2026.

Additionally, President von der Leyen and President Aliyev announced a Ministerial Regional Connectivity Investment Conference, which will take place in Baku by the end of 2026. The Conference will bring together the EU, the South Caucasus, Central Asia, international financial institutions and private investors to showcase strategic connectivity projects, present investment opportunities, and mobilise financing for regional infrastructure.

Von der Leyen also spoke about the importance of deepening the economic partnership between the EU and Azerbaijan by resuming discussions for a new comprehensive agreement.

Find out more

Press release

Statement by President von der Leyen with Azerbaijani President Aliyev