EU Commission chief announces $22.7M program to promote peace in South Caucasus

European Commission President Ursula von der Leyen on Wednesday announced a €20 million ($22.7 million) program to promote peace in the South Caucasus region as she embarked on a visit to Azerbaijan.

The “peace-fostering program” was announced by von der Leyen at a joint press conference in Baku following talks with President Ilham Aliyev. She said they seek to “help peace take root in the region, to make the benefits of peace visible in people's everyday lives, those who live in border regions.”

“We will invest in better healthcare, for example with the procurement of ambulances. We will also focus on safety through demining,” von der Leyen said, adding that they will also invest in local economies through rural development and water management, among others.

Von der Leyen said they want to foster peace through connectivity, and the EU will invest up to €200 million ($227 million) in grants for transport, energy and digital links across the region, with the potential to mobilize up to €2 billion ($2.2B) in public and private investment.

She said projects could include railway connection through Azerbaijan’s autonomous Nakhchivan region or developing the Port of Baku.

She also proposed launching the EU-Azerbaijan Connectivity Partnership, taking into account the South Caucasus nation’s geopolitical position and its growing strategic importance.

“This goes hand and hand together with a High-Level Connectivity Dialogue, covering transport, energy and digital connectivity. We will also work on the organisation of a Regional Connectivity Investment Conference, preferably right here in Baku. And thus bringing together Europe, the South Caucasus and Central Asia,” von der Leyen said.

She added that the EU sees “enormous potential” to deepen cooperation with Baku on renewables, electricity interconnections and regional energy networks, welcoming Azerbaijan’s plans to build a green energy corridor to link the country with the 27-member-bloc.

Von der Leyen arrived in Baku earlier Wednesday as part of a two-day visit to the South Caucasus region. She she will visit the neighboring Armenia on Thursday.

Aliyev, for his part, said the presence of an "unprecedented dynamism" in the relationship between Azerbaijan and the EU, arguing it reflects both sides' will to intensify their cooperation and strengthen their partnership.

Aliyev said he and von der Leyen's delegation discussed a "very impressive" agenda, including energy cooperation, and that Azerbaijan is the EU's main trading partner in the South Caucasus, with 70% of the bloc's regional trade taking place with Baku.

He recalled that Azerbaijan and the EU signed a strategic partnership in the energy sector and Baku's natural gas exports to EU member states increased by almost 65%.

Aliyev said connectivity, renewables and regional security, including the normalization process between Azerbaijan and Armenia, were topics discussed in their meetings.

"Now peace (in the South Caucasus) is reality, but we must work hard in order to strengthen it, to make it long-lasting, to make it eternal. And, of course, we highly appreciate the support of European Commission.

"And madame president also informed me that (the) European Commission can and want to be very helpful, and we appreciate any help, any assistance from this point of view. And I think that that will strengthen the dynamism in the region that will allow (the) Southern Caucasus to be (an) area free from any territorial claims, any conflicts. An area of partnership, cooperation and peace," he added.