Türkiye lands 2.4 bln euro green financing for railway link to Nakhchivan

ANKARA

Türkiye has secured 2.4 billion euros ($2.8 billion) in international green financing for a strategic railway project that will connect it to the Nakhchivan Autonomous Republic, aimed at strengthening the country’s regional connectivity.

The funding will support the construction of a new railway line starting in the eastern city of Kars and passing through the neighboring city of Iğdır before reaching Dilucu, where it will establish a direct rail connection to Nakhchivan.

Nakhchivan is Azerbaijan’s western exclave, which is surrounded by Armenia, Iran and Türkiye.

Treasury and Finance Minister Mehmet Şimşek highlighted that continued access to international financing reflects growing confidence in Türkiye’s economic progra

"While supporting infrastructure investments that will increase our country's competitiveness and productivity, we are also maintaining close cooperation with international institutions," he said.

Designed with a sustainable infrastructure approach, the railway will enhance freight and passenger movement between Türkiye and Nakhchivan, promoting regional trade and integration.

The funding agreements were signed between the finance ministry and a consortium of creditors led by Japan’s MUFG Bank.

The deal includes participation from Sweden’s EKN and Austria’s OeKB export credit agencies, as well as international banks and institutional investors under the guarantee of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

According to sources from the ministry, the financing aligns with the country's efforts to prioritize efficient public infrastructure investments to boost economic and social development.

Türkiye has raised nearly $6 billion in external funding for infrastructure projects so far this year.