The European Union will provide up to €200 million in grant funding to improve transport, energy and digital links across the South Caucasus, European Commission President Ursula von der Leyen announced during a visit to Baku on Wednesday.
Von der Leyen met Azerbaijani President Ilham Aliyev alongside EU Enlargement Commissioner Marta Kos.
She said the new Peace through Connectivity Package aims to strengthen ties between Armenia and Azerbaijan by improving regional connectivity and supporting local communities.
"Our 'Peace through Connectivity Package' will help build a peaceful and prosperous future for the South Caucasus," von der Leyen said.
"Together, we can turn peace on paper into peace in practice."
The European Commission also announced an additional €20 million to support local communities in both Azerbaijan and Armenia.
The funding will be directed towards healthcare, demining, skills development and support for local businesses, with the aim of helping communities benefit from greater regional stability and economic cooperation.
The announcement comes as Azerbaijan and Armenia continue implementing the U.S.-brokered peace agreement reached at the White House last August.
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On 1 July, President of the European Commission Ursula von der Leyen arrived in Azerbaijan on a working visit.
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