The United States has launched a $201 million fund to promote private investment along the Trans-Caspian Trade Route as it moves to turn a US-brokered Armenia-Azerbaijan peace initiative into a regional transport and economic corridor.

Secretary of State Marco Rubio announced that the Trans-Caspian Enterprise Fund was operational with a newly elected board of directors and capital provided by the US government.

“Today, I am pleased to announce that the Trans-Caspian Enterprise Fund is up and running, led by a newly elected board of directors and capitalized with $201 million in U.S. government funding to spur private sector investment across the Trans-Caspian Trade Route (Middle Corridor) in the South Caucasus and Central Asia,” Rubio said.

The announcement came as the United States marked the first anniversary of a joint declaration signed by Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev at the White House.

President Donald Trump hosted the two leaders and witnessed the signing, which the administration says ended decades of conflict in the South Caucasus and launched the Trump Route for International Peace and Prosperity, known as TRIPP.

The proposed multimodal corridor is expected to include railways, roads, energy links and digital infrastructure. It is intended to connect Armenia and Azerbaijan while becoming part of the wider trade route across the Caspian region.

Rubio said engineering surveys for the railway section in Armenia were already underway. Azerbaijan was also nearing completion of a highway and railway designed to connect with Armenia.

“Over the past twelve months, the United States has worked side-by-side with Armenia and Azerbaijan to turn that promise into progress,” Rubio said.

“The TRIPP – a multimodal transit route that will modernize rails, road, energy and digital infrastructure – is on its way to becoming a reality,” he added.

The corridor is designed to expand commercial links through the South Caucasus and Central Asia. The region occupies a strategic position between Europe and Asia and has attracted growing interest as an alternative trade route.

Rubio said improving economic ties could help consolidate the peace between the two former adversaries.

“This progress reflects a simple truth: peace and prosperity reinforce one another,” he said.

“TRIPP is more than an infrastructure project — it is a vital link in the Trans-Caspian Trade Route, a driver of commercial opportunities for the United States and others, and a model for how economic cooperation can cement peace following the resolution of long-standing disputes.”

The United States believes the settlement has also opened the way for stronger American relations with Armenia and Azerbaijan and could increase prosperity in all three countries.

Washington remains committed to working with the two South Caucasus nations as they build on the agreement, Rubio said.

“We congratulate both nations on the courage and vision they have shown over the past year, and we look forward to continued progress toward a durable, lasting peace in the South Caucasus,” he said.

Armenia and Azerbaijan fought repeated wars and clashes over Nagorno-Karabakh following the collapse of the Soviet Union. Azerbaijan regained control of the Armenian-populated enclave in September 2023, prompting most of its ethnic Armenian population to flee to Armenia.

The proposed corridor has broader geopolitical importance because it could increase trade between Central Asia and Europe while bypassing traditional routes through Russia and Iran. Its implementation will depend on continuing cooperation between Armenia and Azerbaijan after decades of mistrust.