European Commission President Ursula von der Leyen's consecutive visits to Azerbaijan and Armenia have become one of the most significant diplomatic developments in the South Caucasus following the conclusion of the peace agreement between Baku and Yerevan. The trip demonstrated the European Union's intention not only to support the normalization of relations between the two countries but also to establish a long-term presence in the region through large-scale infrastructure, economic, and energy initiatives.

The first stop of the visit was Baku, where von der Leyen held talks with Azerbaijani President Ilham Aliyev. Following the meeting, the European Commission unveiled the Peace through Connectivity Package, allocating up to €200 million in grants to support the development of transport, energy, and digital infrastructure across the South Caucasus. According to the Commission, this funding is expected to leverage up to €2 billion in public and private investment aimed at modernizing transport corridors, expanding logistics hubs, upgrading energy networks, and improving digital connectivity. In addition, the EU announced €20 million for humanitarian projects, including demining of liberated territories, reconstruction of social infrastructure, support for small businesses, and confidence-building measures among border communities. Brussels views these initiatives as a practical contribution to consolidating the peace process and creating conditions for long-term economic cooperation.

During the talks, particular attention was given to the development of the Middle Corridor (the Trans-Caspian International Transport Route), which is becoming increasingly important for European trade with Central Asia and China. The European Union seeks to reduce its dependence on traditional transport routes passing through Russia, making the South Caucasus a crucial element of a new transport architecture linking Europe and Asia. Energy cooperation was another key topic. Since the signing of the Strategic Energy Partnership Memorandum in 2022, Azerbaijan has remained one of Europe's key natural gas suppliers while also emerging as a promising partner for renewable electricity export projects across the Black Sea.

During the meeting, Ursula von der Leyen welcomed the signing of the peace agreement between Azerbaijan and Armenia, describing it as a historic opportunity for the entire region. According to her, a lasting settlement creates new opportunities to launch transport links, expand trade, and attract investment that had been impossible during decades of conflict.

The following day, the President of the European Commission traveled to Yerevan, where she met with Armenian Prime Minister Nikol Pashinyan. Following their discussions, the European Union announced an additional €18 million in financial assistance as part of the existing €52 million support package. At the same time, Brussels announced the removal of import duties on nearly 80% of Armenian exports to the EU market. The European Commission stressed that these measures are intended to support Armenia's economy amid increasing external economic pressure and to facilitate the diversification of the country's trade relations.

The talks also covered progress on the new EU-Armenia Partnership Agenda, implementation of the Resilience and Growth Plan, and prospects for expanding cooperation in digital economy, energy, public administration reforms, and transport infrastructure. Special attention was devoted to security cooperation, including continued support for the EU Mission on the Armenia-Azerbaijan border and programs aimed at strengthening the resilience of Armenia's state institutions.

Speaking in Yerevan, Ursula von der Leyen stated that the European Union considers Armenia a reliable partner and intends to continue supporting the country's reform agenda. She also reiterated that sustainable peace between Armenia and Azerbaijan has the potential to reshape the economic geography of the entire South Caucasus by creating new opportunities for trade, investment, and regional cooperation.

 

According to analysts, the back-to-back visits by the President of the European Commission reflect the emergence of a new EU strategy for the South Caucasus. Whereas European policy in the region previously focused primarily on energy security, Brussels now seeks to position itself simultaneously as an investor, an economic partner, and a political facilitator. The peace agreement between Azerbaijan and Armenia is viewed within the EU as a unique opportunity to launch major infrastructure projects capable of integrating the South Caucasus more closely with European and Central Asian markets.

Experts also note that the visits took place amid intensifying competition among external powers seeking greater influence in the region. Alongside the European Union, Russia, Turkiye, China, and Central Asian countries are all advancing their own regional initiatives. Against this backdrop, Brussels aims to secure its presence not only through political engagement but also through concrete financial commitments, long-term investments, and strategic infrastructure projects. At the same time, the EU continues to pursue a balanced approach toward both countries: Azerbaijan is regarded as a strategic partner in energy and transport connectivity, while Armenia receives substantial financial and institutional support as part of its broader cooperation with the European Union.

The outcome of the visits suggests that the European Union is moving beyond diplomatic support for the peace process toward the practical implementation of an economic agenda designed to transform the South Caucasus into one of the key hubs connecting Europe and Asia through new transport and energy networks. The success of this strategy will largely depend on the full implementation of the peace agreement between Azerbaijan and Armenia, the opening of regional transport links, and the ability of both countries to maintain the stability necessary to attract major international investors.

CCBS Expert Group

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07.07.2026 07:28