THE GEOGRAPHY (Foreign Office UK)
Area: 86,600 sq km (x sq mi)
Population: 7.5 million
Capital City: Baku (population: 2 million)
People: Predominantly Turkic Azeri,
Russian (8%), Armenian (6% mostly fled
as a result of the conflict in Nagorno
Karabakh)
Languages: Azeri 89%, Russian 3%,
Armenian 2%, other 6%
Religion(s): Muslim 93.4%, Russian
Orthodox 2.5%, Armenian Orthodox
2.3%, other 1.8%
Currency: Manat
Major political parties: Azerbaijan
Democratic Party or ADP Azerbaijan
Popular Front or APF; Civic Solidarity;
Communist Party of Azerbaijan or
CPA-2; Democratic Party of
Independence of Azerbaijan; Liberal
Party of Azerbaijan; Motherland Party;
Musavat Party; New Azerbaijan Party
or NAP; Party for National
Independence of Azerbaijan or PNIA;
People's Democratic Party of
Azerbaijan; Social Democratic Party of
Azerbaijan or SDP; Vahdat Party.
Government: Republic
Head of State: President Heidar Aliev
Prime Minister/Premier: Ilham Aliev
Foreign Minister: Valeyet Guliyev
Membership of international
groupings/organisations: BSEC, CCC,
CE, CIS, EAPC, EBRD, ECE, ECO,
ESCAP, FAO, IBRD, ICAO, ICRM, IDA,
IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO,
Intelsat, Interpol, IOC, ISO
(correspondent), ITU, NAM
(observer), OIC, OPCW, OSCE, PFP,
UN, UNCTAD, UNESCO, UNIDO, UPU,
WFTU, WHO, WIPO, WMO, WTrO
(observer)
GEOGRAPHY
Azerbaijan is the largest of the three
South Caucasus states, bounded by
Russia, Georgia, Armenia, Iran and the
Caspian Sea. There is also a short
border between Turkey and the
Nakhichevan Autonomous Republic (pop.
295,000), which is separated from the
bulk of Azerbaijan by southern
Armenia. Under Russo-Turkish treaty
arrangements Nakhichevan's
sovereignty cannot be transferred
from Azerbaijan. In 1917 40% of the
population of Nakhichevan was
Armenian; by 1989 the figure was 0.6
percent.
Location: South-western Asia,
bordering the Caspian Sea, between
Iran and Russia
Geographic co-ordinates: 40 30 N, 47
30 E
Area:
total: 86,600 sq km
land: 86,100 sq km
water: 500 sq km
note: includes the exclave of Naxcivan
Autonomous Republic and the
Nagorno-Karabakh region; the region's
autonomy was abolished by Azerbaijani
Supreme Soviet on 26 November 1991
Land boundaries:
total: 2,013 km
border countries: Armenia (with
Azerbaijan-proper) 566 km, Armenia
(with Azerbaijan-Naxcivan exclave) 221
km, Georgia 322 km, Iran (with
Azerbaijan-proper) 432 km, Iran (with
Azerbaijan-Naxcivan exclave) 179 km,
Russia 284 km, Turkey 9 km
Coastline: 0 km (landlocked)
note: Azerbaijan borders the Caspian
Sea (800 km, est.)
Maritime claims: none (landlocked)
Climate: dry, semiarid steppe
Terrain: 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) in west;
Baku lies on Abseron Yasaqligi
(Apsheron Peninsula) that juts into
Caspian Sea
Elevation extremes:
lowest point: Caspian Sea -28 m
highest point: Bazarduzu Dagi 4,485 m
Natural resources: petroleum, natural
gas, iron ore, non-ferrous metals,
alumina
Land use:
arable land: 18%
permanent crops: 5%
permanent pastures: 25%
forests and woodland: 11%
other: 41% (1993 est.)
Irrigated land: 10,000 sq km (1993 est.)
Natural hazards: droughts; some
lowland areas threatened by rising
levels of the Caspian Sea
THE HISTORY (Foreign Office UK)
An independent Azerbaijan existed from
1918-20. It joined the USSR in 1922,
subsumed within the Transcaucasian
Soviet Republic (with Armenia and
Georgia), until this was abolished in
1936 and its three constituent parts
became Union Republics in their own
right. In September 1988 Azerbaijan
became the first Soviet republic
outside the Baltics to declare its
national sovereignty. In January 1990
Ayaz Mutalibov was appointed First
Secretary of the local Communist
party and in the September 1991
presidential elections he won an
unopposed victory with 80% of the
vote. In October 1991 formal
independence was declared.
In early 1992 both Mutalibov and his
(ex-Communist) Prime Minister,
Hassanov, were forced to resign
following mass demonstrations over
the ineffective Azeri response to
Armenian successes in Nagorny
Karabakh. Mutalibov tried
unsuccessfully to seize back power in
May 1992, when it became clear that
the ex-Communists would be trounced
in the elections. Popular protests
prompted by the opposition Azerbaijani
Popular Front (APF) forced Mutalibov
to flee to Moscow and Abulfaz Elchibey
won the presidential election with 64%
of the vote.
Elchibey's declared objectives were the
building of a secular democratic
system, very close links with Turkey,
and early victory in N-K. He
transferred parliamentary powers
from the ex-communist dominated
Supreme Soviet to a 50-person Milli
Majlis (Council), half of whose
members were from the Popular
Front. But, Elchibey failed to carry
through his commitment to hold fresh
parliamentary elections.
In June 1993, clashes between
government troops and forces
commanded by Colonel Surat Husseinov
(a major industrialist and Karabakh
hero) in Gyanja (Azerbaijan's second
city) left over 50 people dead.
Husseinov demanded the resignation of
those responsible and his men then
marched towards Baku. Elchibey felt
forced to invite his main rival for
power, Heidar Aliev, a popular leader
of Nakhichevan, (who became chairman
of the Azerbaijani KGB in 1967, head of
the Azerbaijani Communist Party in
1969, and was a long-standing Politburo
member), to return to Baku as
chairman of parliament. Elchibey fled
to his native village in Nakhichevan and
Aliev became acting President. Surat
Husseinov was appointed Prime
Minister.
The population of Azerbaijan reacted
calmly to the overthrow of Elchibey.
Many identified Aliev with strong
leadership and a period during the
Soviet Union of relative plenty for
Azerbaijan. Presidential elections took
place on 3 October 1993, with Aliev
gaining 98.8% of the vote (according to
official results). The UK funded team
of observers, together with other
Western observers, concluded that a
genuine majority of voters supported
Aliev.
A series of events beginning in late
September 1994, led to what Aliev
described as an 'attempted coup'.
Interior ministry troops, led by the
deputy interior minister, Rovshan
Javadov, rebelled and attacked the
Chief Prosecutor's department.
Meanwhile, an uprising in Gyanja,
alleged by Aliev to have been
orchestrated by Husseinov, was taking
place. Aliev responded by invoking a
state of emergency in Baku and Gyanja
and calling for mass demonstrations of
support. He sacked the Chief
Prosecutor and Husseinov, who is
believed to have fled to Russia. A
reconciliation took place between Aliev
and Javadov: Aliev retained control,
and Javadov kept his position.
Similar events took place in March
1995. The same interior ministry
troops, under the control of Javadov,
rebelled following a dispute with the
local police and civilian authorities. The
troops were ordered to surrender -
Javadov retreated to his barracks on
the outskirts of Baku, and government
forces brought the rebellion to a
violent end on 17 March, killing
Javadov. There has been a
crack-down on opposition parties
accused of involvement in the events,
and Aliev has since claimed himself to
have been the victim of several
assassination attempts. In February
1996, 20 former Interior Ministry
troops and 25 others accused of
involvement in the rebellions were
convicted and sentenced to 10-15 years
imprisonment.
Longer Historical Perspective
BBC News Country Timeline:
Azerbaijan
POLITICS
Recent Political Developments
President Aliev consolidated his position
in parliamentary elections held in
November 199 in which
pro-government parties gained an
overwhelming majority of seats. One
third of the Republic's opposition
parties (including Musavat and
Communist) and 60% of independent
candidates were barred from
participating in the proportional
representation and constituency
elections respectively. The joint
UN/OSCE observation mission
criticised the elections saying they 'did
not correspond to international norms
and deprived the voters of the
possibility to make full use of their
right to vote'.
The report cited numerous
irregularities including interference by
local officials, multiple voting,
ballot-box stuffing and expulsion of
observers. A constitutional referendum
was also held in which 91 of the alleged
86% of the electorate who participated
endorsed the new constitution.
However, the official turnout figure
has been agreed by international
observers to be grossly inflated.
Estimates put it at well below the 50%
required to validate the results.
A further constitutional referendum
took place on 24 August 2002,
proposing 39 mendments to 24 articles
of the constitution. An overwhelming
majority of the alleged 88% of the
electorate who participated endorsed
the changes. However, there were
numerous reports of irregularities in
the voting process and the OSCE
Office in Baku expressed concern
about the reliability of the official
figures.
Ilham Aliev, the son of President Aliev,
was appointed Prime Minister on 4
August 2003.
President Aliev underwent heart
by-pass surgery in the US in April
1999. After a period of convalescence
in Turkey he returned to Baku in June
1999. In 2003, there have been
renewed concerns for President
Aliev's health and he has again
undergone treatment in both Turkey
and the US.
Elections
Presidential elections were held on 11
October 1998. The main opposition
parties boycotted the elections in
protest at the composition of the
Central Electoral Commission, which
they saw as biased in favour of
President Aliev. The result of the
elections was a victory for Aliev with
76.11 % of the vote. His nearest rival,
Etibar Mammedov, was a distant
second with 11.60 %. The OSCE/Council
of Europe preliminary statement on the
elections reported 'serious
irregularities', with evidence of ballot
stuffing and obstruction of observers.
They concluded that 'the overall
election process did not comply with
international standards'.
Azerbaijan held parliamentary elections
on 5 November 2000. International
Observers noted improvements in new
electoral legislation, but the conduct of
the election itself was seriously flawed.
The turnout was hugely inflated and
observers noted widespread ballot
stuffing. The preliminary statement
issued by the international observers
from the OSCE and The Council of
Europe was a strongly worded
criticism of the elections. In response
to the criticism, eleven of the seats
were re-run on 7 January 2001. Many
of the deficiencies observed on 5
November were repeated, but
International Observers acknowledged
an improvement in standards.
Presidential elections are due to take
place in October 2003.
THE ECONOMY (Foreign Office UK)
Basic Economic Facts
GDP: US$ 5.3bn
Annual Growth: 11.1%
Inflation: 1.8%
Major Industries: petroleum and natural
gas, petroleum products, oilfield
equipment; steel, iron ore, cement;
chemicals and petrochemicals; textiles
Major trading partners: Russia,
Turkey, U.S, France, Germany,
Georgia, Iran and Italy
Exchange rate: US$1:4,914 Manats
Azerbaijan's economy suffered large
shocks from the disintegration of the
former Soviet Union, which disrupted
trade routes and markets, and the
drain on resources caused by the N-K
war effort. However buoyancy in the
oil market eased pressure and 2002
showed good growth in the economy of
11.1%. The State Oil Fund of Azerbaijan
grew from US$692 million on 1
January 2003 to US$ 780 million by 1
July 2003. GDP growth for the first
six months of the 2003 remained
strong at 10.1%. Inflation over the same
period dropped to 0.5%. In the first six
months of 2003 Foreign Direct
Investment in Azerbaijan increased by
64% over the same period last year,
although the majority of this is
concentrated mainly in the oil sector.
Forecasts suggest that growth over
the next 6-9 months might dip due to
electoral uncertainty. However, the
appointment of Prime Minister Ilham
Aliev on 4 August will have reassured
major investors.
The Azeri government adopted a
Poverty Reduction and Development
Plan in October 2002. The programme
will focus on poverty reduction (63% of
the population live below the poverty
line), increased growth in the non-oil
sector, reduction of corruption,
continuing strong monitoring of
monetary policy, governance measures
such as reform of the Cabinet of
ministers and improving expenditure
control.
Further information about Azerbaijan's
economy can be found at Trade
Partners UK Country Profile:
Azerbaijan
Nagorno-Karabakh
Recent History
The present phase of the
Nagorno-Karabakh (NK) conflict began
in 1988 after the Regional Soviet of
Nagorno-Karabakh adopted a resolution
on the transfer of N-K to Armenia.
The resolution was rejected by the
USSR and Soviet troops deployed to
N-K to suppress nationalist sentiments.
Following the break-up of the Soviet
Union N-K declared its independence.
Azeri forces then attempted to
re-establish control but met fierce
resistance. In 1992 N-K forces
captured Shusha (a previously
Azeri-populated town within N-K) and
established a corridor to Armenia
through Lachin. And in 1993 N-K
forces, with help from Armenia,
retook northern N-K and occupied the
entire south-west corner of
Azerbaijan, some 20% of Azeri
territory. This encroachment onto
Azeri territory led to wide-scale
international condemnation, including
four UN Security Council Resolutions
demanding that 'local Armenian forces'
withdraw from the most recently
occupied areas outside N-K.
The 1994 spring offensive began in
early April with each side accusing the
other of renewed attacks and shelling
of civilian targets. Fighting was intense
along the entire front line, with both
sides seeming better prepared
militarily than in previous years.
However, on 12 May 1994 a cease-fire
was brokered in direct talks between
Armenia and Azerbaijan and on 27 July
1994 the Armenian and Azerbaijani
Defence Ministers and the Commander
of the Nagorno-Karabakh Army signed
an agreement consolidating it. With the
exception of minor violations the
cease-fire has held. Armenia,
Azerbaijan and the authorities in
Nagorno-Karabakh have all confirmed
their readiness to continue it
indefinitely until a political agreement is
concluded. The number of deaths in the
conflict probably exceeded 15,000 with
at least 900,000 Azeris and 300,000
Armenians displaced.
The Issues
The issues in dispute include the future
political status of NK and the nature of
any international guarantees of that
status. Armenia points to a 1991
referendum (ruled illegal by the
Azerbaijani government) in which the
people of NK voted for independence.
The Armenian Parliament refuses to
accept any solution to the conflict
which refers to NK as part of
Azerbaijan, while Azerbaijan has
annulled NK's former autonomous
status.
International Efforts
In 1992 the (then) CSCE established an
international peace process, known as
the Minsk Group, with the aim of
undertaking negotiations with the
parties to the conflict, to reach a
peaceful political settlement. At its
December 1994 Summit in Budapest the
OSCE agreed to integrate the
mediation efforts of the Russian
Federation and the Minsk Group making
Russia a co-chair of the Minsk Group
(initially with Sweden, then with
Finland, and now in a Troika with the
US and France). The summit also
agreed in principle to the deployment
of a multi-national peacekeeping
operation, following the conclusion of a
political agreement on the cessation of
the armed conflict, and establishing a
High Level Planning Group (HLPG) to
work on details of an operation. There
is as yet no sign of the political
agreement being reached although the
Troika have presented confidential
proposals to the parties for
consideration. The Minsk Group now
comprises Russia, USA, France,
Germany, Sweden, Italy, Turkey,
Belarus, Portugal, the Netherlands and
Finland. The UK is not a member.
President Kocharian and President
Aliev met in Geneva for bilateral talks
about the N-K conflict in July 1999.
Since then they have met regularly.
US-hosted proximity talks were held in
Key West, Florida, in April 2001. The
detail of their talks has been kept
close. There have been several
subsequent meetings but little recent
sign of any political breakthrough.
On 14 August 2002 the Azeri and
Armenian Presidents met at Sedereg
on the border between Armenia and
Nakhichevan. They met again at
Chisinau at the beginning of October.
As a result of the conflict, the OSCE
imposed an arms embargo on both
Armenia and Azerbaijan in 1992. The UK
observes this embargo.
UK Position
The UK (and our European partners)
have argued that any solution should be
based on the sovereignty of Azerbaijan
with real autonomy for the people of
NK. The international community does
not recognise N-K independence.
Although the UK is not a member of
the Minsk Group, it strongly supports
the Group's work.
INTERNATIONAL RELATIONS
Azerbaijan's Relations with Neighbours
Turkey
Despite its nominally Shia majority,
Azerbaijan is westward-looking. It sees
Turkey, whose people are closely
related, as its natural bridge to the
west.
Iran
Iran's relations with President Aliev are
closer than they were with Elchibey,
based on links forged during Aliev's
rule in Nakhichevan, but were strained
following Iran's exclusion by US
companies from the Azerbaijan
International Operating Company set up
to exploit three Azeri oil fields in the
Caspian. The admission of Iran into the
international consortium set up in 1996
to explore the Shakh Deniz prospect in
the Caspian may have helped to
improve the relationship. In the past,
Aliev accepted Iranian help in setting up
large tented refugee camps in
Azerbaijan (Iran remains fearful of a
huge influx of Azerbaijani refugees).
Azerbaijan joined the previously
moribund Economic Cooperation
Organisation in Tehran in February
1992 which Iran sees as a forerunner
to an Islamic Common Market.
Azerbaijan and Iran signed an
agreement in October 1996 for the
construction of a gas pipeline from
Iran to Nakhichevan. President Aliev
made an official visit to Iran in 2002,
when the two countries signed a series
of bilateral agreements.
Russia
President Aliev has sought to increase
Azerbaijan's independence from Russia,
and has so far declined to accept
Russian bases or border guards. But
good relations with Russia are essential
in view of the northern export route
for Azerbaijan's oil, for a settlement to
the N-K conflict and a satisfactory
legal regime for the Caspian Sea.
Azerbaijan's Relations with the
International Community
President Aliev visited NATO HQ on 4
May 1994 and signed the 'Partnership
for Peace' (PfP) Framework
Document at a formal meeting of the
North Atlantic Council (NAC). He
attended the NATO Summit in
Washington in April 1999. Azerbaijan,
together with Armenia, joined the
Council of Europe in January 2001.
EC aid (UK`s share is 16%) is mainly
humanitarian assistance. Total food and
humanitarian aid of nearly 160 million
ecu were allocated from 1992 to 1999.
Technical assistance is provided
through TACIS (Technical Assistance
for the Commonwealth of Independent
States) and TRACECA (Transport
Corridor Europe Central Asia). TACIS
support is mainly in the form of policy
advice, institution building, training and
the design of legal and regulatory
frameworks.
A Partnership and Cooperation
Agreement (PCA) between the EU and
Azerbaijan was signed on 22 April 1996
and ratified by the UK in April 1998.
The PCA governs political, economic
and trade relations between the parties
and lays a basis for social, financial,
scientific, technological and cultural
cooperation between them. The
Presidents of Georgia, Armenia and the
Prime Minister of Azerbaijan
(President Aliev was unable to attend
due to ill health) met with EU Foreign
Ministers in Luxembourg on 22 June
1999 to mark the entry into force of
the PCAs on 1 July 1999. The first
cooperation council meeting between
the EU and Azerbaijan took place in
October 1999. The fourth such meeting
took place on 1 October 2002.
AZERBAIJAN'S RELATIONS WITH THE
UK
The UK recognised Azerbaijan on 31
December 1991 and an agreement on
diplomatic relations was signed in Baku
in March 1992 by Mr Hogg, the first
British Minister to visit independent
Azerbaijan.
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