Economy

Azerbaijan exports chemicals, machinery, food (particularly grapes and other fruits and vegetables), beverages, petroleum and natural gas, iron and steel, nonferrous metals, and other products; its imports include iron and steel, machinery, and food and beverages, particularly meat and milk. Azerbaijan’s primary trading partners are Russia, Turkey, China, and Italy; the country also has trade links with Georgia, Belarus, Britain, Israel, and the Central Asian republics. Azerbaijan has no trade with Armenia because of the conflict over Nagorno-Karabakh.

Transportation

Few of the rivers of Azerbaijan are navigable, and most freight—including that transported out of the country—is carried by rail and truck. Considerable portions of the rail network are electrified. The principal goods carried are oil products, building materials, timber, and grain. A major railway line traverses the Kura valley and connects Baku with Tbilisi and Batumi in Georgia. Another parallels the Caspian Sea north of Baku.

Motor transport is used extensively for both freight and passengers. Roads connect various parts of the country and are often the only means of land communication between remote mountain districts and the administrative centers and large cities.

Baku, on the Caspian, is a busy seaport, handling such goods as oil, timber, grain, and cotton. The ferry link between Baku and Turkmenbashi (also on the Caspian, in Turkmenistan) augments considerably the amount of cargo passing through Azerbaijan. Air routes connect Baku with many European and Asian cities.

Economic regions

The Abşeron region includes the Abşeron Peninsula and several other areas of eastern Azerbaijan. As a result of its advantageous geographic position, it is crossed by freight routes connecting Azerbaijan and the whole of Transcaucasia with the North Caucasus and Central Asia. Highways run from the peninsula to every corner of the republic.

Britannica Quiz

The Country Quiz

Although it is on the shores of the Caspian Sea, the Abşeron region nevertheless remains one of the most arid parts of Azerbaijan. Its main natural wealth is mineral, including oil, natural gas, iodobromide waters, and limestone used in building and cement production. Baku owes its modern growth to the development of the oil industry; oil derricks encircle the city, and the oil refineries and processing plants attract workers from many areas. Modern Sumqayıt, 22 miles (35 km) northwest of Baku, is currently a center of the iron and steel, nonferrous metallurgical, and chemical industries, although the development of light engineering is envisaged.

The Länkäran region of southern Azerbaijan is well endowed by nature; warm-climate crops, such as tea, feijoa (a fruit-bearing shrub), rice, grapes, tobacco, and citrus trees, flourish there. The region also produces spring and winter vegetables. The towns of Länkäran, Astara, and Masallı are small, and local industry is mostly concerned with the processing of agricultural goods, while in the mountains the Talysh people make colorful rugs and carpets.

The Quba-Xaçmaz region lies to the north of Abşeron. Its coastal lowlands specialize in grain and vegetable production, while vast orchards surround the towns of Quba and Qusar. The mountain slopes are used for grazing. Special breeds of sheep are raised; their skins are used in the local fur industry.

The Shirvan region, an industrially and agriculturally developed part of Azerbaijan, is centered on the Shirvan Plain. The Mingäçevir hydroelectric station is located there. The area also has a well-developed network of roads. Industry is generally engaged in the processing of such agricultural products as cotton, grapes, and fruit. The most important vineyards lie in the vicinity of Şamaxı, a town famed for its wines, notably Matrasa and Shemakha, which are, respectively, dry red and sweet. In Kürdämir a fragrant dessert wine is produced. The best varieties of pomegranates are grown near Göyçay.

The Mugano-Salyan region, lying south of the Kura River and within the boundaries of the Mili and Mugan plains, specializes in cotton growing (under irrigation), producing about seven-tenths of the gross cotton output of Azerbaijan. Cotton-ginning plants are located in Bärdä, Salyan, and Äli-Bayramlı, all of which, in addition to being on the Kura River, have the advantage of being located on railways and motor roads. A thermal power station stands near Äli-Bayramlı.

The southwestern region includes Nagorno-Karabakh and the Laçin, Füzuli, and Qubadlı administrative districts. Because the average altitude is 4,900 feet (1,500 meters), it is one of the areas in the country where broken relief impedes the development of transport, industry, and agriculture. Agricultural production is concentrated in the mountain valleys. Animal husbandry constitutes a large percentage of the gross agricultural output, the leading branches being sheep and pig raising. Grapes, tobacco, and grain are the main crops; wine-making, silk-making, and electrical engineering are the main industries.

The Gäncä-Qazax region is situated in the center of Transcaucasia near the junction of Azerbaijan, Armenia, and Georgia. The region has conditions favorable both for human life and for intensive agriculture. Trade routes have crossed this part of Azerbaijan from time immemorial, and the ancient town of Ganja (Gäncä) was founded here. It is an industrial center, with food, engineering, chemical, and nonferrous metallurgical industries. Naftalan is a health resort.

The Şäki-Zaqatala region includes the towns of Şäki, Zaqatala, and Balakän. Its territory borders the Greater Caucasus range, which shelters it from cold northern winds. The numerous mountain rivers provide ample supplies of water, and the region is densely populated. Agricultural products include tobacco, aromatic plants (mint, basil, and roses), rice, corn (maize), and various fruits. The area is also a major producer of hazelnuts and walnuts.

The Naxçıvan region is a typical semidesert, although irrigation has made it possible to cultivate grapes, cotton, and grain. There are several sources of mineral water in the foothill areas.