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EU to provide 200 million euros to boost South Caucasus connectivity, von der Leyen says

By Thomson Reuters Jul 1, 2026 | 1:11 PM

(Fixes typo in headline)

BAKU, July 1 (Reuters) – The European Union will provide up to €200 million ($228 million) in ​grant funding to boost transport, ‌energy and digital links across the South Caucasus, European Commission President Ursula von der Leyen said during a visit to Baku on ‌Wednesday.

Von ​der Leyen, who met ⁠Azerbaijani President Ilham ⁠Aliyev alongside EU Enlargement Commissioner Marta Kos, said the initiative was designed to support peace between Azerbaijan and Armenia ​by strengthening regional connectivity and delivering targeted assistance to local communities.

Armenia ⁠and Azerbaijan were at ⁠war for nearly four decades ​over the mountainous region of Nagorno-Karabakh, and ​reached a U.S.-brokered peace agreement last ‌August after meeting President Donald Trump at the White House.

“Our ‘Peace through Connectivity Package’ will help build a peaceful ⁠and prosperous future for the South Caucasus,” von der Leyen said. “Together, we can turn peace ⁠on paper ‌into peace in practice.”

The ⁠Commission said a further €20 million ​would ‌be allocated to a programme ​supporting local ⁠communities in Armenia and Azerbaijan, including through investment in healthcare, demining, skills development and local businesses.

($1 = 0.8787 euros)

(Reporting by Nailia BagirovaWriting by Maxim Rodionov; Editing by ​Chizu Nomiyama )