The European Union is set to bolster its ties with Azerbaijan through a significant financial pledge aimed at enhancing the country’s infrastructure. European Commission President Ursula von der Leyen announced that the EU will allocate up to €200 million in grants to Azerbaijan. This funding is intended to support various projects in transport, energy, and digital infrastructure, with the potential to stimulate up to €2 billion in public and private investment. The announcement was made during a meeting with Azerbaijani President Ilham Aliyev in Baku, where both leaders engaged in discussions on energy cooperation, regional connectivity, and the ongoing Armenia-Azerbaijan peace process.
In a bid to further strengthen ties, Von der Leyen introduced a proposal for a new EU-Azerbaijan connectivity partnership. The collaboration comes at a time of significant growth in Azerbaijani gas exports to the EU, which have surged by approximately 65% since a 2022 energy agreement was reached. Currently, ten EU countries are beneficiaries of Azerbaijani gas imports, reflecting the deepening energy relations between the EU and Azerbaijan.
In addition to infrastructure financing, the European Commission president unveiled a €20 million program aimed at supporting border communities in Azerbaijan. This initiative will focus on improving healthcare services, clearing mines, developing rural areas, and assisting small businesses, thereby addressing some of the critical needs of these communities.
Von der Leyen’s visit to Azerbaijan is part of a broader tour of the South Caucasus, which also includes scheduled talks in Armenia. Her engagements aim to reinforce the EU’s commitment to fostering regional cooperation and stability, with a particular emphasis on energy and connectivity projects that can drive economic growth and development in the region.