🚆 Türkiye Secures $2.8 Billion in Green Financing for Strategic Railway to Azerbaijan’s Nakhchivan

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On 22 July 2025, Türkiye announced the successful acquisition of €2.4 billion ($2.8 billion) in green financing to fund the Kars-Iğdır-Aralık-Dilucu Railway Project, a key infrastructure initiative aimed at establishing a direct rail link to Nakhchivan, an autonomous exclave of Azerbaijan.

🌱 International Collaboration and Green Credentials

The financing package was arranged by a consortium led by MUFG Bank (Japan), with guarantees provided by:

• Sweden’s Export Credit Agency (EKN)
• Austria’s Oesterreichische Kontrollbank (OeKB)
• Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) under the Islamic Development Bank

The project qualifies as green financing due to its alignment with sustainability goals, including reduced carbon emissions and enhanced regional transport efficiency.

🏗️ Strategic Infrastructure and Economic Impact

Implemented by the General Directorate of Infrastructure Investments under Türkiye’s Ministry of Transport and Infrastructure, the railway will:

• Strengthen cross-border trade logistics
• Improve access for regional production centers to international markets
• Support Türkiye’s Medium-Term Program for infrastructure-led economic growth

Treasury and Finance Minister Mehmet Şimşek highlighted the deal as a sign of international confidence in Türkiye’s economic roadmap:

“We continue to support infrastructure investments that enhance our country’s competitiveness and productivity, while maintaining close cooperation with international institutions”.

💰 Broader Financing Landscape

With this agreement, Türkiye’s total external project-based financing for 2025 has reached approximately $6 billion, reflecting sustained global engagement in the country’s infrastructure ambitions.

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 Türkiye Levent bölgesinden manzara, İstanbul by Mimar77