1 July 2026 12:52 UTC · European Commission · EU Commission Press Release · Source · Email X Link

European Commission says von der Leyen announces connectivity and peace investments

Key points

EU to invest up to EUR 200 million in South Caucasus connectivity
EUR 20 million programme to support peace, healthcare, demining and local development

TL;DR

President von der Leyen announced up to EUR 200 million in EU grants for South Caucasus transport, energy and digital links and a potential EUR 2 billion mobilization of investment.
The EU will launch an EU–Azerbaijan Connectivity Partnership, a High-Level Connectivity Dialogue, and a Regional Connectivity Investment Conference, preferably in Baku.
The Commission announced a EUR 20 million peace-fostering programme for healthcare, demining and local economic support in border regions.
The statement welcomed Azerbaijan's role in regional energy security, supported renewable and interconnection plans including a proposed Green Energy Corridor and an electricity cable to Armenia, and noted resumption of talks on a comprehensive agreement.

Original text

European Commission - Statement Statement by President von der Leyen with Azerbaijani President Aliyev Baku, 1 July 2026 President Aliyev, Thank you for your warm welcome. It is good to be back in Baku. It is remarkable city, a place where a rich and ancient heritage meets striking modern architecture. And it is a reflection of the forward- looking ambitions of today's Azerbaijan. I am here today to deepen a partnership that matters greatly to the European Union. And one that has real momentum, as the President just described. But first, let me turn to the most important development in this region in decades. Peace. Let me congratulate you on initiating an historic peace agreement with Armenia. You showed personal leadership in promoting peace and cooperation across the region. And it is creating new opportunities for stability, trust and shared prosperity. The EU strongly supports this process. And we will continue to do so. Together, we can turn peace on paper into peace in practice. That is why we are working here today together. This brings me to my first announcement of today. We want to foster peace through connectivity. Through our Global Gateway Investment Programme, we will invest up to EUR 200 million in grants for transport, energy and digital links across the South Caucasus with the potential to mobilise up to EUR 2 billion in public and private investment. Projects could include the railway connection through Nakhchivan, or developing the Port of Baku. The South Caucasus is one of the world's great crossroads – connecting Europe, the Caspian and Central Asia. Its strategic importance continues to grow. And Azerbaijan has a central role to play. Few countries are as well placed as yours to drive regional cooperation and stability. Azerbaijan tactfully combines its strategic geography with its growing economic, political, and regional influence. This is why we are proposing to launch an EU– Azerbaijan Connectivity Partnership. This goes hand and hand together with a High-Level Connectivity Dialogue, covering transport, energy and digital connectivity. We will also work on the organisation of a Regional Connectivity Investment Conference, preferably right here in Baku. And thus bringing together Europe, the South Caucasus and Central Asia. My second announcement is on a new EUR 20 million peace-fostering programme, together we want to help peace take root in the region, to make the benefits of peace visible in people's everyday lives, those who live in border regions. We will invest in better healthcare, for example with the procurement of ambulances. We will also focus on safety through demining. And we will invest in strong local economies through rural development, water management, precision farming – you name it - and of course support for small and medium enterprises. Let me turn now to energy. It remains one of the strongest pillars of our partnership. In recent years, Azerbaijan has proven to be a reliable trusted energy partner for Europe. We have not forgotten that at the time when Russia weaponised energy and turned off the gas, Azerbaijan stepped up. The Southern Gas Corridor strengthened Europe's energy security, and it is a remarkable success story. And I want to thank you for that. Now we are preparing the next chapter. Azerbaijan is investing in the energy of the future. Such as your plans to develop offshore wind energy in the Caspian Sea. You have both the ambition and the potential to become a hub for clean electricity. This fits perfectly with Europe's own clean transition. So, we see enormous potential to deepen our cooperation. On renewables. On electricity interconnections. And on regional energy networks. We welcome your plans to build a Green Energy Corridor, linking Azerbaijan with the European Union. Greater renewable generation can also free up more gas for export and thus help reinforce regional energy security, by sharing with the neighbours. We very much welcome your suggestion of an electricity cable to Armenia. So, renewables are powering the future of our economies. And here in the South Caucasus, they can also help power peace. Finally, we discussed how to deepen our economic partnership. The EU is already Azerbaijan's largest trading partner and biggest investor. Now we want to build on that. The resumption of discussions on a new comprehensive agreement is an important step. This can open the road for even more trade between Azerbaijan and the European Union, and we will work together to make progress happen. President Aliyev, The European Union believes in a bright future for this region. So let us work together. For a peaceful South Caucasus. For a South Caucasus connected to Europe, the Caspian and Central Asia. And for an ever-stronger partnership between us. STATEMENT/26/1503 Press contacts: Paula PINHO (+32 2 29 20815) Arianna PODESTA (+32 2 298 70 24) Olof GILL (+32 2 29 65966) General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email

European Commission says von der Leyen announces connectivity and peace investments

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