Following talks with Azerbaijani President Ilham Aliyev in Baku, European Commission President Ursula von der Leyen announced the launch of a new package of EU initiatives for the South Caucasus. Brussels expects to support the peace process between Armenia and Azerbaijan not only politically, but also through the development of transport, energy, and social infrastructure.

The Peace through Connectivity program will be the central element of the initiative. It provides up to €200 million in grants for infrastructure projects. The European Commission believes these funds could leverage up to €2 billion in public and private investment. An additional €20 million will be allocated to support border communities in Armenia and Azerbaijan. The funds are planned to be used for healthcare development, mine clearance, specialist training, and support for small businesses.

"Together, we can turn peace on paper into peace in reality," von der Leyen said.

According to her, the purpose of the visit is to strengthen the partnership between the European Union and Azerbaijan. She also congratulated Baku on the initialing of the peace agreement with Armenia, calling it "historic."

"You have demonstrated leadership in promoting peace and cooperation throughout the region, and this creates new opportunities for stability, trust, and shared prosperity," the head of the European Commission said, addressing Aliyev.

She emphasized that the EU intends to continue supporting the peace process.

At the same time, Brussels and Baku agreed to establish a new partnership that will identify priority projects in transport, energy, and digital infrastructure, seek funding, and coordinate their implementation. Among the areas under consideration is the development of rail links with Nakhchivan. Furthermore, before the end of 2026, Baku will host a ministerial conference on investments in regional connectivity, bringing together representatives of the South Caucasus and Central Asia, international financial institutions, and businesses.

Ilham Aliyev, without breaking the general chorus of diplomatic pleasantries, stated that relations between Azerbaijan and the European Union are developing on an upward trajectory.

"Today we are witnessing a very active and dynamic dialogue between the European Union and Azerbaijan," he said, adding that both sides are interested in further deepening cooperation and strengthening their partnership.

As the European Commission previously explained, von der Leyen's visit to Azerbaijan, followed by Armenia, is being considered in the context of the peace process between the two countries. At a briefing in Brussels, EC Spokesperson Paula Pinho noted that the regional visit is taking place following the initialing of the "historic" peace agreement between Azerbaijan and Armenia, and that the EU is committed to promoting transport and energy connectivity in the region.

"When I talk about connectivity, I mean energy and transport. This can play a decisive role in bringing people together and ensuring integration," Pinho emphasized.