EU Announces New Peace and Connectivity Funding for the South Caucasus

(Horizon Media) – The European Union is preparing to launch a new package of support for the South Caucasus, including a €20 million peace initiative and up to €200 million in grants aimed at strengthening regional transport, energy and digital connectivity.

European Commission President Ursula von der Leyen announced the initiatives in Baku during a joint press statement with Azerbaijani President Ilham Aliyev, according to APA.

Von der Leyen said the €20 million programme is designed to support peace efforts in the region and ensure that communities, particularly those living in border areas, begin to see concrete improvements in their daily lives.

The programme is expected to include investments in healthcare services, including the purchase of ambulances, as well as support for demining activities. It will also focus on rural development, water resource management, precision agriculture, local community resilience and assistance for small and medium-sized enterprises.

In addition to the peace initiative, von der Leyen announced that the European Union will make available up to €200 million in grants under its Global Gateway investment strategy. The funding will target transport, energy and digital infrastructure projects across the South Caucasus.

According to von der Leyen, the grants could help mobilize as much as €2 billion in public and private investment for the region. Potential projects include the development of a railway connection through Nakhchivan and further investment in the Port of Baku.