Baku, July 1, AZERTAC

President of the Republic of Azerbaijan Ilham Aliyev and President of the European Commission Ursula von der Leyen made press statements on July 1.

The President of Azerbaijan made the statement first.

Statement by President Ilham Aliyev

- Dear Madame President, dear guests, ladies and gentlemen,

First of all, Madame President, welcome to Azerbaijan. I'm very glad to see you again. We met twice last year, on the margins of the European Political Community Summits, in May and October, and had broad discussions on our bilateral agenda and many other issues.

We, by the way, have a very active phase of the relationship between the European Commission and Azerbaijan. This year, we hosted the President of the European Council, Mr. Costa, in March, and then in May we hosted the head of European diplomacy, Madame Kallas, and today the President of the European Commission.

So I would say this is unprecedented dynamism in our relationship, which reflects the mutual will of both sides to intensify our cooperation and to strengthen our partnership. We highly value the relationship with the European Commission, and today, with Madame President and the delegations, we broadly discussed a very impressive agenda.

The European Union is Azerbaijan's main trading partner. More than 40% of our trade is with the member states, and for the European Union, Azerbaijan is the main trading partner in the South Caucasus. Almost 70% of trade in the South Caucasus is trade with Azerbaijan. Of course, we broadly discussed our cooperation in the field of energy, and the visit of Madame President four years ago to Azerbaijan was also very important.

From this point of view, we signed the MoU on Strategic Partnership in the energy field, and since that time Azerbaijan's natural gas export to the European Union member states has increased by almost 65%. Today, half of our gas export goes to the member states of the European Union, and in total, 10 member states of the European Union are recipients of Azerbaijani gas, with the potential to expand this geography.

Energy security for every country is today a very important factor of national security, and Azerbaijan has invested a lot of its political efforts, diplomatic activity, and also financial investments in building infrastructure for the transportation of our oil and gas. The Southern Gas Corridor is a remarkable example of our common activity. The 3,500 kilometers of integrated pipeline systems today are the main artery for the transportation of natural gas from Azerbaijan to Europe.

Connectivity definitely was one of the important parts of our discussions. Azerbaijan is an active participant and, in many cases, an initiator of the regional transportation projects. The East-West and North-South transportation corridors cross Azerbaijan, and having good relations with our neighbors and the neighbors of our neighbors has allowed us to establish a very broad cooperation format, which is to the benefit of all the actors.

Today, the volume of cargo through Azerbaijan in all directions is growing. We invested largely in transportation infrastructure in Azerbaijan and in the neighborhood, and are continuing to do it. And with respect to the new geopolitical situation, we see that there is a need to expand the capacity of our trade sea ports and of our railroad infrastructure. We are doing all of that in line with the schedule and with our own financial resources.

A relatively new part of our relationship with the European Commission is renewables. We also largely discussed it with Madame President, including the potential of Azerbaijan in solar, wind, and hydropower, and the existing transmission lines, as well as those to be built. We can also become strategic partners from this point of view.

I informed Madame President that the contracts with foreign and local companies signed so far will allow us to have eight gigawatts of solar and wind energy over the next five to six years. This is only what has been signed, which is a contractual commitment. But definitely there'll be more.

Of course, we also discussed the regional security issues at length, especially the normalization process between Azerbaijan and Armenia, which is progressing successfully. Last August in Washington, at the White House, in the presence of President Trump, Armenia and Azerbaijan signed the Joint Declaration. President Trump also signed it as a witness, and Armenia and Azerbaijan also initialed the text of the peace agreement. So, de facto, peace is done, and we see the benefits.

We have taken many unilateral steps in order to demonstrate that peace is not only on paper, but that we can feel it in day-to-day life. Azerbaijan lifted all the restrictions on the transit of goods through its territory to Armenia. Those restrictions were imposed because of the occupation of our internationally recognized territories by Armenia. We also started to supply Armenia with critical fuels, particularly gasoline and diesel. In today's geopolitical situation, this has even bigger importance than ever before.

So, we are demonstrating that, for us, peace is something we can already touch, we can feel, and we are learning to live in peace. We lived under occupation for 30 years, and we restored our sovereignty and territorial integrity ourselves by force and by political means. And we offered peace to Armenia.

So now peace is a 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 the European Commission.

Madame President also informed me that the European Commission can and wants to be very helpful. And we appreciate any help, any assistance from this point of view. And I think that this will strengthen the dynamism in the region and will allow the South Caucasus to be an area free from any territorial claims, any conflicts, and an area of partnership, cooperation, and peace.

Once again, Madame President, welcome to Azerbaijan. We wish you a pleasant stay.

x x x

Then, the President of the European Commission made the statement.

Statement by President Ursula von der Leyen

- President Aliyev, thank you for the warm welcome.

And it is very good to be back in Baku. This remarkable city, a place where rich and ancient heritage meets striking modern architecture, is a reflection of the forward-looking ambitions of today's Azerbaijan. I'm here today to deepen our partnership, one that matters greatly to the European Union and one that has real momentum, as the President just described. But first, let me also turn to the most important development in this region in decades, and that is peace. I want to congratulate you for initiating a historic peace agreement with Armenia. You showed personal leadership in promoting peace and cooperation across the region, and it is creating new opportunities for stability, trust, and shared prosperity. The European Union strongly supports this process, and we will continue to do so. Together, we can indeed turn peace on paper into peace in practice, and that's why we are working here today together.

And this brings me to my first point today. We want to foster peace through connectivity. We have the Global Gateway Investment Program, and through this Global Gateway Investment Program, we will invest up to 200 million euros in grants for transport, energy, and digital links across the South Caucasus. This has the potential to mobilize up to 2 billion euros in public and private investment. Projects could include the rail connection through Nakhchivan, the development of the Port of Baku, for example.

The South Caucasus is one of the world's great crossroads, connecting Europe, the Caspian, and Central Asia. Its strategic importance continues to grow, and Azerbaijan has a central role to play. Few countries are as well placed as yours to drive regional cooperation and stability. Azerbaijan tactfully combines its strategic geography, its growing economic, political, and regional influence. And that is why we are proposing to launch an EU-Azerbaijan Connectivity Partnership. This goes hand in hand with a High-Level Connectivity Dialogue, a dialogue that covers transport, energy, and digital connectivity. We will also work on the organization of a Regional Connectivity Investment Conference, preferably right here in Baku, thus bringing together Europe, the South Caucasus, and Central Asia.

My second point is an announcement of a new 20-million-euro peace-fostering program. Together, we want to help peace take root in the region, to make the benefits of peace visible and tangible in people's everyday lives, especially for those who live in border regions. We will invest in better healthcare, for example, with the procurement of ambulances. We will focus on safety through demining. We will invest in strong local communities through rural development, water management, precision farming—you name it—and, of course, support for small and medium enterprises.

Let me also turn to energy. It remains one of the strongest pillars of our partnership. In recent years, Azerbaijan has proven to be a reliable, trusted energy partner to the European Union. We have not forgotten that at a time when Russia weaponized energy and turned off the gas to Europe, Azerbaijan stepped up. The Southern Gas Corridor indeed strengthened Europe's energy security, and it is a remarkable success story. And I want to thank you for that. Now we are preparing the next chapter. Azerbaijan is investing in the energy of the future, such as your plans to develop offshore wind energy in the Caspian Sea. You have both the ambition and, of course, the potential to become a hub for clean electricity, and this fits perfectly with Europe's own clean transition. So, we see enormous potential to deepen our cooperation on renewables, on electricity interconnections, and on regional energy networks. We welcome your plans to build a Green Energy Corridor linking Azerbaijan with the European Union. Greater renewable generation can also free up more gas for export and thus help reinforce regional energy security by sharing it with your neighbors. We very much welcome also your suggestion of an electricity cable to Armenia. This is a very interesting point. So, what I'm describing is basically that renewables are powering the future of our economies, and here in the South Caucasus, they can also help power peace.

Finally, we discussed how to deepen the economic partnership. The European Union is already Azerbaijan's largest trading partner and biggest investor. Now we want to build on that. The resumption of discussions on a new comprehensive agreement is an important step. This can open opportunities for even more trade between Azerbaijan and the European Union, and we will work together to make progress happen.

President Aliyev, the European Union believes in a bright future for this region. Let us work together for a peaceful South Caucasus, for a South Caucasus connected to Europe, the Caspian, and Central Asia, and for an ever-stronger partnership between us.

Thank you very much.