The European Union is seeking to boost its ties with Azerbaijan as European Commission President Ursula von der Leyen has announced plans for up to €200 million in EU grants for transport, energy and digital links across the South Caucasus, during a visit to Baku with Azerbaijani President Ilham Aliyev.
Von der Leyen said the funding would be delivered through the EU’s Global Gateway investment programme, which backs infrastructure projects outside the bloc, and could help mobilise up to €2 billion in public and private investment.
Projects mentioned included a railway connection through Nakhchivan and work to develop the Port of Baku, according to her remarks released by the Commission on Wednesday.
The Commission president said the EU was proposing to launch an “EU — Azerbaijan Connectivity Partnership”, alongside a high-level dialogue covering transport, energy and digital connectivity.
Plans also include a regional connectivity investment conference, which she said could be held in Baku.
Von der Leyen also announced a new €20 million programme “to help peace take root in the region”, including investment in healthcare such as procuring ambulances, support for demining, and measures aimed at strengthening local economies through rural development, water management, precision farming and support for small and medium-sized enterprises.
Energy and trade ties
Energy was described as one of the main pillars of the EU’s relationship with Azerbaijan, with von der Leyen calling the country “a reliable trusted energy partner for Europe”, according to her statement.
She referred to the Southern Gas Corridor, a network of pipelines that delivers natural gas from the Caspian region to Europe, and said the EU welcomed Azerbaijan’s plans to develop offshore wind in the Caspian Sea and proposals for a “Green Energy Corridor” linking Azerbaijan with the EU.
Von der Leyen also said discussions had taken place on deepening economic ties, noting the EU is Azerbaijan’s largest trading partner and biggest investor, and that talks on a new comprehensive agreement had resumed.
