The European Union has committed up to €200 million — roughly $228 million — in grant funding aimed at improving transport, energy, and digital infrastructure across the South Caucasus, European Commission President Ursula von der Leyen announced Wednesday during a trip to Baku.
Von der Leyen met with Azerbaijani President Ilham Aliyev alongside EU Enlargement Commissioner Marta Kos. She described the funding package as a way to reinforce peace between Azerbaijan and Armenia by improving regional connections and directing aid to communities on the ground.
The two neighboring countries spent nearly four decades in conflict over the mountainous territory of Nagorno-Karabakh. That dispute came to an end last August when the two sides reached a peace agreement brokered by the United States, following a meeting with President Donald Trump at the White House.
Von der Leyen framed the effort as a bridge between diplomatic progress and real-world results. “Our ‘Peace through Connectivity Package’ will help build a peaceful and prosperous future for the South Caucasus,” she said. “Together, we can turn peace on paper into peace in practice.”
Beyond the main funding commitment, the European Commission announced an additional €20 million earmarked for a program supporting communities in both Armenia and Azerbaijan. That money would go toward healthcare, land mine removal, job skills training, and assistance for local businesses.
