In a significant move to boost infrastructure and economic collaboration, the European Union has pledged up to €200 million in grants to Azerbaijan. This funding is earmarked for crucial transport, energy, and digital infrastructure projects and is anticipated to catalyze up to €2 billion in additional public and private investment. This announcement was made by the European Commission President Ursula von der Leyen during her recent visit to Baku, where she met with Azerbaijani President Ilham Aliyev.
During their discussions, von der Leyen and Aliyev focused on enhancing energy cooperation and regional connectivity, as well as addressing the ongoing Armenia-Azerbaijan peace process. In an effort to further solidify ties, von der Leyen proposed a novel EU-Azerbaijan connectivity partnership. Highlighting the growing energy relationship, Aliyev noted that Azerbaijani gas exports to the EU have surged by approximately 65% following a 2022 energy agreement, with a total of ten EU countries now receiving gas from Azerbaijan.
In addition to infrastructure funding, the European Commission has introduced a €20 million support program aimed at assisting border communities in Azerbaijan. This initiative will focus on improving healthcare services, facilitating mine clearance, promoting rural development, and providing aid to small businesses. These efforts are designed to foster stability and growth in regions that are crucial to Azerbaijan’s development.
The announcement comes as part of von der Leyen’s broader efforts to strengthen EU ties in the South Caucasus. Following her engagements in Azerbaijan, she is slated to continue her regional tour with a visit to Armenia, where further discussions are expected to address similar themes of cooperation and development.