EU pledges €218 million to aid Armenia and fund South Caucasus infrastructure

The European Union announced a two‑part support package for the South Caucasus. On 2 July the EU committed an additional €18 million to Armenia, removed tariffs on about 80 % of Armenian farm exports and promised tariff‑free access for key products, aiming to offset the trade restrictions imposed by Russia after Armenia’s parliamentary election. European Commission President Ursula von der Leyen said the aid would help “re‑route products that currently still rely heavily on the Russian market”.

In a separate announcement in Baku, von der Leyen unveiled up to €200 million in grant funding under the Global Gateway programme to strengthen transport, energy and digital connectivity across the region, together with a €20 million peace initiative targeting border‑area communities in Armenia and Azerbaijan. The EU said the investments would support de‑mining, healthcare, rural development and small‑business resilience, and help translate “peace on paper into peace in practice” after the 2020 Nagorno‑Karabakh conflict.

Both measures are presented as a response to Russian economic pressure on Armenia and a broader effort to promote stability and economic integration in the South Caucasus.