AZE.US
European Commission President Ursula von der Leyen said in Baku that the European Union is ready to mobilize up to €2 billion in public and private investment for transport, energy and digital connectivity across the South Caucasus, with Azerbaijan expected to play a central role in the process.
Speaking after talks with President Ilham Aliyev, von der Leyen said the EU’s Global Gateway investment program would provide up to €200 million in grants for regional connectivity projects. She said the grant package could help mobilize up to €2 billion in broader public and private investment.
Projects under discussion could include a railway connection through Nakhchivan and the development of the Port of Baku, she said.
“The South Caucasus is one of the world’s great crossroads connecting Europe, the Caspian and Central Asia,” von der Leyen said, adding that Azerbaijan has “a central role to play.”
The European Commission president also proposed launching an EU-Azerbaijan connectivity partnership, along with a high-level dialogue covering transport, energy and digital links. She said Brussels would also work on organizing a regional connectivity investment conference, preferably in Baku.
Von der Leyen linked the new connectivity agenda to the peace process between Azerbaijan and Armenia. She congratulated Aliyev on what she called a historic peace agreement with Armenia and said the EU wanted to help turn “peace on paper” into “peace in practice.”
She also announced a separate €20 million program to support peace in the region. According to von der Leyen, the funding will focus on visible improvements in border communities, including healthcare, ambulances, demining, rural development, water management, precision farming and support for small and medium-sized businesses.
Aliyev said Azerbaijan’s relations with the European Commission were experiencing “unprecedented dynamism.”
He noted that Baku had hosted European Council President Antonio Costa in March, EU foreign policy chief Kaja Kallas in May and now the European Commission president.
The Azerbaijani president said the European Union is Azerbaijan’s main trading partner, accounting for more than 40% of the country’s trade. He also said Azerbaijan is the EU’s main trading partner in the South Caucasus, with nearly 70% of the EU’s regional trade involving Azerbaijan.
Energy remained one of the main themes of the meeting. Aliyev said Azerbaijani natural gas exports to EU member states had increased by nearly 65% since the signing of the strategic energy partnership memorandum with the European Commission four years ago. He said half of Azerbaijan’s gas exports now go to EU member states, and 10 EU countries receive Azerbaijani gas.
Von der Leyen thanked Azerbaijan for being a reliable energy partner, saying Europe had not forgotten that Azerbaijan stepped up at a time when Russia “weaponized energy” and cut gas supplies to Europe.
She said the next stage of cooperation could focus on renewable energy, electricity interconnections and regional energy networks. Von der Leyen also welcomed Azerbaijan’s plans for a green energy corridor linking the country with the European Union and described Aliyev’s suggestion of an electricity cable to Armenia as “very interesting.”
Aliyev said Azerbaijan is investing heavily in renewable energy. He said contracts already signed with foreign and local companies would allow the country to develop 8 gigawatts of solar and wind capacity over the next five to six years.
On the peace process with Armenia, Aliyev said normalization was moving successfully and that “de facto peace” had already been achieved. He said Azerbaijan had lifted all restrictions on the transit of goods through its territory to Armenia and had started supplying Armenia with critical fuel, including gasoline and diesel.
Aliyev said Azerbaijan wanted peace to be felt in everyday life, not only on paper.
Von der Leyen said the EU believes in a peaceful South Caucasus connected to Europe, the Caspian and Central Asia, and in a stronger partnership with Azerbaijan.
AZE.US