Azerbaijan

Azerbaijan, officially the Republic of Azerbaijan (Azarbaycan Respublikasi), is a transcontinental nation at the juncture of Eastern Europe and Western Asia, bordered by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, Iran to the south, and Turkey through the Nakhchivan exclave. Known as the “Land of Fire”—a reflection of its Zoroastrian heritage and natural gas flames—Azerbaijan is a presidential republic with a predominantly Shia Muslim and Turkic-speaking population. Its strategic location, hydrocarbon wealth, and dynamic foreign policy make it a pivotal actor in the South Caucasus.

Historical Background

Azerbaijan’s recorded history extends back several millennia, positioned along major trade routes linking Persia, the Caucasus, and Central Asia. Ancient Caucasian Albanian kingdoms once dominated the territory before successive Persian, Ottoman, and Russian empires incorporated it into their realms.
Modern Azerbaijani statehood first emerged after the collapse of the Russian Empire, when the Democratic Republic of Azerbaijan (ADR) was established on 28 May 1918—the first secular, parliamentary republic in the Muslim world. However, independence was short-lived: the Red Army invaded in 1920, integrating Azerbaijan into the Soviet Union as the Azerbaijan Soviet Socialist Republic (SSR).
Azerbaijan regained sovereignty in 1991 following the USSR’s dissolution. The early independence years were defined by the Nagorno-Karabakh conflict with Armenia, rooted in ethnic and territorial disputes. During the 1992–94 war, Armenian-backed forces occupied Nagorno-Karabakh and surrounding Azerbaijani districts. The 1994 ceasefire left roughly one-fifth of Azerbaijan’s territory outside its control.
In the following decades, Azerbaijan rebuilt its military and economy through oil wealth. The 2020 Second Nagorno-Karabakh War saw Azerbaijan reclaim substantial territory, and in September 2023, a brief offensive restored full sovereignty over Nagorno-Karabakh, prompting the exodus of the Armenian population from the region.
Since 1993, Azerbaijan’s politics have been dominated by the Aliyev family: Heydar Aliyev consolidated power after civil turmoil, succeeded by his son Ilham Aliyev in 2003, whose leadership has been marked by stability, economic expansion, and increasing centralisation of authority.

Geography and Environment

Azerbaijan covers 86,600 square kilometres, including the Nakhchivan Autonomous Republic and Nagorno-Karabakh. The capital, Baku (Baki), lies on the Caspian Sea, at 28 metres below sea level, making it the world’s lowest capital city.
The terrain features flat lowlands along the Kura–Araz River basin, contrasting with the Caucasus Mountains in the north and west, including Bazardüzü Dağı (4,466 m), the highest peak. The climate ranges from dry steppe and subtropical zones to alpine regions, producing a diverse ecology.
Rich in petroleum, natural gas, iron ore, and non-ferrous metals, Azerbaijan’s environment has been heavily impacted by oil extraction, industrial pollution, and soil degradation. The Caspian Sea, the world’s largest enclosed inland water body, remains both an economic resource and an environmental challenge, affected by hydrocarbon exploitation and declining biodiversity.

People and Society

As of 2024, Azerbaijan’s population is approximately 10.65 million, with 57.6% living in urban areas. Baku, the largest city, is home to over 2.4 million people. The population is predominantly Azerbaijani (91.6%), with minorities including Lezghins, Russians, Armenians, and Talysh.
The Azerbaijani language (a Turkic language) is official and spoken by over 92% of citizens, while Russian serves as a lingua franca in education and commerce. The vast majority of the population is Muslim (97%), chiefly Shia, though the state is constitutionally secular, and religious observance remains moderate.
Life expectancy is 75.9 years, and literacy stands at 100%. With a median age of 34.3 years, Azerbaijan maintains a youthful demographic profile. Education and healthcare are publicly accessible, though rural disparities persist. Women participate actively in education and the workforce, though political representation remains limited.

Government and Politics

Azerbaijan is a presidential republic, governed under the 1995 Constitution, which formally enshrines separation of powers. In practice, the presidency dominates the political system, exerting significant influence over the legislature, judiciary, and media.

• President: Ilham Aliyev (since 2003; re-elected in 2024 with 92.1% of the vote)
• Prime Minister: Ali Asadov (since 2019)
• Legislature: Unicameral National Assembly (Milli Majlis), 125 seats, elected for five-year terms
• Ruling party: New Azerbaijan Party (YAP)

Azerbaijan’s foreign policy is multi-vector, balancing between Russia, Turkey, the West, and Iran. It maintains membership in major international organisations, including the United Nations, OSCE, and Organisation of Islamic Cooperation, and is an OECD observer. Strategic energy projects and regional transport links underpin its diplomacy, particularly partnerships with Turkey and the European Union.

Economy

Azerbaijan possesses an upper-middle-income economy, dominated by oil and gas exports, which account for over 90% of export revenues. Its economic development since 2000 has transformed Baku into a modern financial and industrial centre.

• GDP (PPP): US$225.2 billion (2024 est.)
• GDP per capita (PPP): US$22,100
• GDP growth: 4.1% (2024 est.)
• Inflation: 2.2% (2024 est.)
• Unemployment: 5.6%

The State Oil Company of the Azerbaijan Republic (SOCAR) oversees energy operations. Key pipelines such as the Baku–Tbilisi–Ceyhan (BTC) and the Southern Gas Corridor (SGC) link Azerbaijan’s hydrocarbons to Turkey and Europe, bolstering energy security across the region.
Major industries: Petroleum, natural gas, petrochemicals, metallurgy, construction materials, and textiles.Main exports: Crude oil, natural gas, refined petroleum, plastics, and electricity.Primary export partners: Italy, Turkey, Israel, Greece, and Russia.
While poverty has decreased sharply since the 1990s, challenges remain in economic diversification and anti-corruption reforms. The government has launched programmes to expand ICT, logistics, and renewable energy sectors as part of its “Azerbaijan 2030” development vision.

Energy

Azerbaijan is among the world’s oldest oil-producing nations and continues to hold a central position in global energy markets.

• Crude oil production: ~618,000 barrels/day (2023)
• Natural gas production: 35.8 billion cubic metres (2023)
• Proven reserves: 7 billion barrels of oil; 1.7 trillion cubic metres of gas
• Electricity access: 100% of the population

The country’s energy infrastructure integrates production, refining, and export systems. Though renewable energy currently comprises less than 1% of capacity, large-scale projects aim to develop solar and wind farms, particularly around the Absheron Peninsula and the Caspian coast.

Defence and Security

The Azerbaijan Armed Forces (AAF) include land, naval, and air components, supported by the Internal Troops and the State Border Service.

• Active personnel: Approximately 100,000 (2025 est.)
• Defence expenditure: 5.1% of GDP (2024 est.)

Since the 1990s, Azerbaijan has pursued extensive military modernisation, acquiring advanced systems from Turkey, Israel, and Russia. The deployment of unmanned aerial vehicles (UAVs) and precision-guided weaponry proved decisive during the 2020 Nagorno-Karabakh War.
Azerbaijan maintains close defence cooperation with Turkey under the Shusha Declaration (2021) and a strategic partnership with Israel, while retaining pragmatic ties with Russia. It contributes troops to NATO peacekeeping missions under the Partnership for Peace framework.

Culture and National Identity

Azerbaijan’s culture embodies a fusion of Turkic, Persian, and Russian influences, creating a unique national identity. Traditional arts such as mugham music, carpet weaving, and Ashiq epic poetry are recognised by UNESCO as elements of the Intangible Cultural Heritage of Humanity.
Baku, the capital, symbolises this blend of history and modernity, with its medieval Icherisheher (Old City) juxtaposed against futuristic landmarks such as the Flame Towers and the Heydar Aliyev Center designed by Zaha Hadid.
National symbols include:

• Anthem: “Azerbaijan Marsi” (March of Azerbaijan)
• Colours: Blue (Turkic heritage), Red (modernisation), Green (Islam)
• National symbol: Flames of fire
• National day: 28 May – Republic Day

International Role

Azerbaijan functions as a key energy and transport hub in the South Caucasus, connecting the Caspian Basin to Europe through projects such as the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Baku–Tbilisi–Kars railway. It hosts high-profile international events including the Formula 1 Grand Prix, the Baku International Humanitarian Forum, and global energy summits.
Azerbaijan’s balancing diplomacy allows it to maintain cooperative ties with Russia, Turkey, Iran, and Western powers, securing its role as a bridge between East and West.