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

This article is brought to you in association with the European Commission.

Today 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.

President von der Leyen said: “Our ‘Peace through Connectivity Package’ will help build a peaceful and prosperous future for the South Caucasus. 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, President von der Leyen unveiled concrete actions to advance regional cooperation, as well as 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. The President also stressed the significance of investing together in energy and specifically on renewable energies.

Advancing Connectivity in the South Caucasus

By linking regions together, the EU’s Connectivity Agenda contributes to shared prosperity and peace in the South Caucasus. In this context, President von der Leyen announced the launch of the EU–Azerbaijan Connectivity Partnership. It will provide a structured framework to identify projects, mobilise financing and coordinate their implementation. 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.

Strengthening peace measures in the region

The announced €20 million in Peace Dividends 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. By improving livelihoods and strengthening local resilience, the package will also contribute to building a lasting culture of peace.

This complements existing initiatives such as the support package for Karabakh and other conflict-affected areas, focusing on healthcare, rural development and human capital development, as well as the EU’s initiatives for continued support for humanitarian mine action. Through a Team Europe Initiative, the EU remains the largest donor in this field.

Enhanced trade and energy cooperation with Azerbaijan

President von der Leyen also reaffirmed the EU’s commitment to strengthening cooperation on renewable energy, electricity interconnections and regional energy networks, as Azerbaijan remains a reliable partner in the diversification of Europe’s energy supplies. The President also stressed the importance of deepening the economic partnership between the EU and Azerbaijan by resuming discussions for a new comprehensive agreement.

Background

Relations between the European Union and Azerbaijan are based on the EU-Azerbaijan Partnership and Cooperation Agreement, which has been in effect since 1999. In February 2017, the EU and Azerbaijan launched negotiations on a new framework agreement aimed at revitalising political dialogue and fostering mutually beneficial cooperation. On September 2018, the Cooperation Council further endorsed these priorities, setting out the joint policy directions that guided and strengthened the EU-Azerbaijan Partnership over the following years.  Partnership priorities were also endorsed on 28 September 2018 by the Cooperation Council. In June 2026, the EU and Azerbaijan provisionally concluded discussions on a new set of EU–Azerbaijan Partnership Priorities for the period 2026–2030. The EU and Azerbaijan also resumed negotiations on a new bilateral agreement.

The initialling of the peace agreement between Azerbaijan and Armenia marks a historic opportunity to achieve lasting peace, strengthen regional stability and deepen regional economic integration.

For more information

EU-Azerbaijan Partnership and Cooperation Agreement

Statement by President von der Leyen