European Commission President Ursula von der Leyen met Azerbaijani President Ilham Aliyev in Baku on 1 July 2026. She announced a “Peace through Connectivity Package” that provides up to €200 million in grant funding and can mobilise up to €2 billion of public and private investment to connect transport, energy and digital infrastructure between Azerbaijan and Armenia. An additional €20 million will fund peace‑fostering projects for local communities in both countries, including health care, de‑mining and skills development. The package is backed by a new EU‑Azerbaijan Connectivity Partnership and a High‑Level Dialogue to coordinate projects. A feasibility study for the Nakhchivan railway was launched in January 2026, and a ministerial connectivity conference is planned in Baku by the end of 2026. The Commission also reaffirmed its commitment to renewable‑energy cooperation and to resuming talks on a new EU‑Azerbaijan trade agreement.
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