About this report
Situated in the southern Caucasus region, Azerbaijan is bordered by the Caspian Sea to the east, Armenia and Georgia to the west, Russia to the north, and Iran to the south. Its population of 10.1 million occupies approximately 86 600 square kilometres, with Baku being the capital and largest city.
Azerbaijan has undergone significant economic transformation since gaining independence in 1991, with its large oil and gas reserves driving strong growth in the 1990s and 2000s. However, its heavy dependence on extractive industries has left Azerbaijan exposed to the negative effects of oil price volatility.
This report explores Azerbaijan’s energy sector, highlighting the country’s energy security measures in addition to its evolving energy policies in the context of the energy transition.