(Fixes typo in headline)
BAKU, July 1 (Reuters) - The European Union will provide up to €200 million ($228 million) in grant funding to boost transport, energy and digital links across the South Caucasus, European Commission President Ursula von der Leyen said during a visit to Baku on Wednesday.
Von der Leyen, who met Azerbaijani President Ilham Aliyev alongside EU Enlargement Commissioner Marta Kos, said the initiative was designed to support peace between Azerbaijan and Armenia by strengthening regional connectivity and delivering targeted assistance to local communities.
Armenia and Azerbaijan were at war for nearly four decades over the mountainous region of Nagorno-Karabakh, and reached a U.S.-brokered peace agreement last August after meeting President Donald Trump at the White House.
"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 Commission said a further €20 million would be allocated to a programme supporting local communities in Armenia and Azerbaijan, including through investment in healthcare, demining, skills development and local businesses.
($1 = 0.8787 euros)
(Reporting by Nailia BagirovaWriting by Maxim Rodionov; Editing by Chizu Nomiyama )
