European Commission President Ursula von der Leyen has unveiled a plan for the European Union to extend up to €200 million in grants to Azerbaijan. This funding is aimed at bolstering projects in transport, energy, and digital infrastructure, which are anticipated to catalyze up to €2 billion in additional public and private investments. The announcement was made during von der Leyen’s visit to Baku, where she met with Azerbaijani President Ilham Aliyev to discuss enhancing energy collaboration, improving regional connectivity, and advancing the Armenia-Azerbaijan peace process.

During their discussions, von der Leyen also introduced a proposal for a new EU-Azerbaijan connectivity partnership. President Aliyev noted a significant increase in Azerbaijani gas exports to European Union member states, which have surged by approximately 65% since the 2022 energy agreement with the EU was established. As of now, ten EU countries are sourcing gas from Azerbaijan, reflecting the growing energy ties between the two regions.

In addition to the infrastructure grants, von der Leyen announced a €20 million support initiative specifically aimed at border communities. This program will focus on crucial areas such as healthcare, mine clearance, rural development, and support for small businesses, aiming to improve the living conditions and economic prospects in these areas.

The meeting in Baku marks just one segment of von der Leyen’s broader visit to the South Caucasus region, with plans to continue discussions in Armenia. Her visit underscores the EU’s strategic interest in strengthening partnerships and fostering stability and development in this geopolitically significant area.