EU Grants Azerbaijan €200 Million for Enhanced Connectivity and Investments

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The European Union is set to bolster its support for Azerbaijan with a significant financial commitment, as announced by European Commission President Ursula von der Leyen. The EU is planning to offer up to €200 million in grants aimed at enhancing Azerbaijan’s transport, energy, and digital infrastructure. This funding is anticipated to catalyze up to €2 billion in public and private sector investments. The announcement was made during von der Leyen’s meeting with Azerbaijani President Ilham Aliyev in Baku, reflecting a mutual interest in strengthening energy cooperation and regional connectivity.

In addition to infrastructure support, von der Leyen proposed the establishment of a new EU-Azerbaijan connectivity partnership. This initiative is part of broader discussions that also include the Armenia-Azerbaijan peace process. President Aliyev highlighted the success of the 2022 energy agreement with the EU, noting a significant increase of around 65% in Azerbaijani gas exports to EU countries. Currently, ten EU member states are beneficiaries of Azerbaijani gas, underscoring the deepening energy ties between the EU and Azerbaijan.

Further extending the EU’s commitment to Azerbaijan, von der Leyen revealed a €20 million support package aimed at assisting border communities. This program will focus on improving healthcare services, mine clearance operations, rural development, and boosting small businesses in the region. Such initiatives are designed to support local populations and contribute to stability and growth in border areas.

Von der Leyen’s visit to Azerbaijan is part of a broader South Caucasus tour, with subsequent talks planned in Armenia. This regional engagement underscores the EU’s strategic interest in fostering cooperation and development in the South Caucasus, a region of increasing geopolitical significance due to its energy resources and strategic location.

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