Azerbaijan - a nation with a majority-Turkic and majority-Shia Muslim population - was briefly independent (from 1918 to 1920) following the collapse of the Russian Empire; it was subsequently incorporated into the Soviet Union for seven decades. Azerbaijan has yet to resolve its conflict with Armenia over Nagorno-Karabakh, a primarily ethnic Armenian-populated region that Moscow recognized in 1923 as an autonomous republic within Soviet Azerbaijan after Armenia and Azerbaijan disputed the territory's status. Armenia and Azerbaijan reignited their dispute over the area in 1988; the struggle escalated militarily after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, ethnic Armenian forces held not only Nagorno-Karabakh but also seven surrounding provinces in the territory of Azerbaijan. The OSCE Minsk Group, co-chaired by the US, France, and Russia, is the framework established to mediate a peaceful resolution of the conflict.

Corruption in the country is widespread, and the government, which eliminated presidential term limits in a 2009 referendum and approved extending presidential terms from 5 to 7 years in 2016, has been accused of authoritarianism. Although the poverty rate has been reduced and infrastructure investment has increased substantially in recent years due to revenue from oil and gas production, reforms have not adequately addressed weaknesses in most government institutions, particularly in the education and health sectors, as well as the court system.

Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range

40 30 N, 47 30 E

Asia

about three-quarters the size of Pennsylvania; slightly smaller than Maine

0 km (landlocked); note - Azerbaijan borders the Caspian Sea (713 km)

none (landlocked)

dry, semiarid steppe

large, flat Kur-Araz Ovaligi (Kura-Araks Lowland, much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) to the west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea

highest point: Bazarduzu Dagi 4,466 m

petroleum, natural gas, iron ore, nonferrous metals, bauxite

arable land 22.8%; permanent crops 2.7%; permanent pasture 32.1%

14,277 sq km (2012)

highest population density is found in the far eastern area of the county, in and around Baku; apart from smaller urbanized areas, the rest of the country has a fairly light and evenly distributed population

droughts

local scientists consider the Abseron Yasaqligi (Apsheron Peninsula) (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, soil, and water pollution; soil pollution results from oil spills, from the use of DDT pesticide, and from toxic defoliants used in the production of cotton

both the main area of the country and the Naxcivan exclave are landlocked

9,961,396 (July 2017 est.)

Azerbaijani 91.6%, Lezghin 2%, Russian 1.3%, Armenian 1.3%, Talysh 1.3%, other 2.4%

Azerbaijani (Azeri) (official) 92.5%, Russian 1.4%, Armenian 1.4%, other 4.7% (2009 est.)

Muslim 96.9% (predominantly Shia), Christian 3%, other <0.1, unaffiliated <0.1 (2010 est.)

0.87% (2017 est.)

15.8 births/1,000 population (2017 est.)

7.1 deaths/1,000 population (2017 est.)

0 migrant(s)/1,000 population (2017 est.)

highest population density is found in the far eastern area of the county, in and around Baku; apart from smaller urbanized areas, the rest of the country has a fairly light and evenly distributed population

BAKU (capital) 2.374 million (2015)

23.2 years (2014 est.)

25 deaths/100,000 live births (2015 est.)

1.89 children born/woman (2017 est.)

6% of GDP (2014)

3.4 physicians/1,000 population (2014)

4.7 beds/1,000 population (2012)

urban: 94.7% of population

rural: 77.8% of population

total: 87% of population

urban: 5.3% of population

rural: 22.2% of population

total: 13% of population (2015 est.)

urban: 91.6% of population

rural: 86.6% of population

total: 89.3% of population

urban: 8.4% of population

rural: 13.4% of population

total: 10.7% of population (2015 est.)

0.1% (2016 est.)

9,200 (2016 est.)

<500 (2016 est.)

19.9% (2016)

4.9% (2013)

2.6% of GDP (2014)

presidential republic

66 rayons (rayonlar; rayon - singular), 11 cities (saharlar; sahar - singular);

30 August 1991 (declared from the Soviet Union); 18 October 1991 (adopted by the Supreme Council of Azerbaijan)

Republic Day (founding of the Democratic Republic of Azerbaijan), 28 May (1918)

civil law system

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

18 years of age; universal

Civil Solidarity Party or CSP [Sabir RUSTAMKHANLI]

Civil Unity Party or CUP [Sabir HAJIYEV]

Democratic Enlightenment [Elshan MUSAYEV]

Democratic Reforms Party [Asim MOLLAZADE]

Great Undertaking [Fazil MUSTAFA]

Musavat [Arif HAJILI]

Popular Front Party [Ali KARIMLI]

Motherland Party or AVP [Fazail AGAMALI]

Social Democratic Party [Ayaz MUTALIBOV]

Social Prosperity Party [Khanhusein KAZIMLI]

Unity Party [Tahir KARIMLI]

Whole Azerbaijan Popular Front Party [Gudrat HASANGULIYEV]

Yeni (New) Azerbaijan Party or YAP [President Ilham ALIYEV]

D18 [Ruslan IZZETLI]]

Ireli Public Union or Ireli PU [MirHasan SEYIDOV]

National Council of Democratic Forces [Jamil HASANLI]

N!DA Civic Movement [Turgut GAMBAR, Ulvi HASANLI] (youth movement)

Republican Alternative or REAL [Ilgar MAMMADOV (in prison since 2013)]

ADB, BSEC, CD, CE, CICA, CIS, EAPC, EBRD, ECO, EITI (compliant country), FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NAM, OAS (observer), OIC, OPCW, OSCE, PFP, SELEC (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO (observer)

three equal horizontal bands of sky blue (top), red, and green; a crescent and eight-pointed star in white are centered in the red band; the blue band recalls Azerbaijan's Turkic heritage, red stands for modernization and progress, and green refers to Islam; the crescent moon and star are a Turkic insignia; the eight star points represent the eight Turkic peoples of the world

flames of fire; national colors: blue, red, green

Prior to the decline in global oil prices since 2014, Azerbaijan's high economic growth was attributable to rising energy exports, and some non-export sectors also featured double-digit growth. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa Pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The expected completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another source of revenue from gas exports. Declining oil prices caused a 3.8% contraction in GDP in 2016, reinforced by a sharp reduction in the construction sector. The economic decline has been accompanied by higher inflation and a weakened banking sector in the aftermath of the two sharp currency devaluations in 2015.

Azerbaijan has made limited progress with market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors, but the government has made efforts to combat corruption, particularly in customs and with the “ASAN” one-stop window concept for government services. Several other obstacles impede Azerbaijan's economic progress, including the need for more foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. While trade with Russia and the other former Soviet republics remains important, Azerbaijan has expanded trade with Turkey and Europe and is seeking new markets for non-oil/gas exports, mainly from the agricultural sector, for example with Gulf Cooperation Council member countries, the US, and others.

Long-term prospects depend on world oil prices, Azerbaijan's ability to implement export routes for its growing gas production, and its ability to improve the business environment and diversify the economy. In late 2016, the President approved a strategic roadmap that identified key non-energy segments of the economy for development, such as agriculture, logistics, and tourism.

$165.7 billion (2016 est.)

$168.8 billion (2015 est.)

$165.9 billion (2014 est.)

$37.56 billion (2016 est.)

-3.1% (2016 est.)

0.6% (2015 est.)

2.7% (2014 est.)

$17,500 (2016 est.)

$18,200 (2015 est.)

$18,200 (2014 est.)

18% of GDP (2016 est.)

22.2% of GDP (2015 est.)

37.1% of GDP (2014 est.)

fruit, vegetables, grain, rice, grapes, tea, cotton, tobacco; cattle, pigs, sheep, goats

petroleum and petroleum products, natural gas, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles

-4.2% (2016 est.)

5.032 million (2016 est.)

6% (2016 est.)

5.8% (2015 est.)

4.9% (2015 est.)

33.7 (2008)

36.5 (2001)

29.2% of GDP (2016 est.)

-0.4% of GDP (2016 est.)

39.2% of GDP (2016 est.)

28.3% of GDP (2015 est.)

calendar year

12.4% (2016 est.)

4.1% (2015 est.)

15% (10 March 2017)

15% (14 September 2016)

12.56% (31 December 2016 est.)

13.86% (31 December 2015 est.)

$5.06 billion (31 December 2016 est.)

$4.423 billion (31 December 2015 est.)

$6.521 billion (31 December 2016 est.)

$5.523 billion (31 December 2015 est.)

$13.65 billion (31 December 2016 est.)

$14.82 billion (31 December 2015 est.)

$NA

$-1.363 billion (2016 est.)

$-222.5 million (2015 est.)

$13.21 billion (2016 est.)

$15.59 billion (2015 est.)

oil and gas roughly 90%, machinery, foodstuffs, cotton

Italy 19.9%, Germany 10.5%, France 8%, Indonesia 5.8%, Czech Republic 5.2% (2016)

$9.004 billion (2016 est.)

$9.774 billion (2015 est.)

machinery and equipment, foodstuffs, metals, chemicals

Russia 15.7%, Turkey 12.5%, US 9.6%, Germany 7.5%, Italy 6.7%, Japan 6.2%, China 5.4%, UK 5.4% (2016)

$7.142 billion (31 December 2016 est.)

$7.91 billion (31 December 2015 est.)

$13.83 billion (31 December 2016 est.)

$13.22 billion (31 December 2015 est.)

$73.83 billion (31 December 2016 est.)

$66.5 billion (31 December 2015 est.)

$17.05 billion (31 December 2016 est.)

$14.48 billion (31 December 2015 est.)

Azerbaijani manats (AZN) per US dollar -

1.5957 (2016 est.)

1.5957 (2015 est.)

1.0246 (2014 est.)

0.7844 (2013 est.)

0.79 (2012 est.)

23.3 billion kWh (2015 est.)

20.27 billion kWh (2015 est.)

265 million kWh (2015 est.)

108 million kWh (2015 est.)

7.417 million kW (2015 est.)

84.5% of total installed capacity (2015 est.)

0% of total installed capacity (2015 est.)

14.6% of total installed capacity (2015 est.)

1% of total installed capacity (2015 est.)

833,500 bbl/day (2016 est.)

721,600 bbl/day (2014 est.)

0 bbl/day (2014 est.)

7 billion bbl (1 January 2017 es)

142,100 bbl/day (2014 est.)

101,000 bbl/day (2015 est.)

46,770 bbl/day (2014 est.)

6,171 bbl/day (2014 est.)

29.37 billion cu m (2016 est.)

18.2 billion cu m (2015 est.)

7.32 billion cu m (2015 est.)

200 million cu m (2015 est.)

991.1 billion cu m (1 January 2017 es)

35 million Mt (2013 est.)

3 state-run and 1 public TV channels; 4 domestic commercial TV stations and about 15 regional TV stations; cable TV services are available in Baku; 1 state-run and 1 public radio network operating; a small number of private commercial radio stations broadcasting; local FM relays of Baku commercial stations are available in many localities; local relays of several international broadcasters had been available until late 2008 when their broadcasts were banned from FM frequencies (2010)

.az

4K (2016)

37 (2013)

1 (2012)

condensate 89 km; gas 3,890 km; oil 2,446 km (2013)

3.64% of GDP (2016)

5.61% of GDP (2015)

4.56% of GDP (2014)

4.54% of GDP (2013)

4.66% of GDP (2012)

Army, Navy, Air, and Air Defense Forces (2010)

18-35 years of age for compulsory military service; service obligation 18 months or 12 months for university graduates; 17 years of age for voluntary service; 17 year olds are considered to be on active service at cadet military schools (2012)

Azerbaijan, Kazakhstan, and Russia ratified the Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on a one-fifth slice of the sea; the dispute over the break-away Nagorno-Karabakh region and the Armenian military occupation of surrounding lands in Azerbaijan remains the primary focus of regional instability; residents have evacuated the former Soviet-era small ethnic enclaves in Armenia and Azerbaijan; local border forces struggle to control the illegal transit of goods and people across the porous, undemarcated Armenian, Azerbaijani, and Georgian borders; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian

limited illicit cultivation of cannabis and opium poppy, mostly for CIS consumption; small government eradication program; transit point for Southwest Asian opiates bound for Russia and to a lesser extent the rest of Europe