• Analysis and Studies
• Azerbaijan: a look at the market

Azerbaijan, officially known as the Republic of Azerbaijan, is a country located at the crossroads of Eastern Europe and Western Asia. It shares borders with several countries, including Russia, Georgia, Armenia, Iran, and Turkey. Azerbaijan was part of the Union of Soviet Socialist Republics (USSR) from 1922 until the dissolution of the USSR in 1991. As one of the constituent republics, it was known as the Azerbaijan Soviet Socialist Republic (Azerbaijan  SSR).

During its time as part of the USSR, Azerbaijan experienced significant political, social, and economic changes. The Soviet government implemented policies aimed at industrialization and collectivization, which had both positive and negative effects on the country. Azerbaijan's oil reserves played a crucial role in the Soviet economy, and the oil industry was further developed during this period.

A look at the Market

Azerbaijan has an economy heavily reliant on oil, which has led to macroeconomic instability due to fluctuations in global demand. Recently, the government had to intervene and provide a financial rescue to the country's largest lender. The Nagorno-Karabakh conflict, despite its human toll, holds the potential for economic gains. However, like many other nations, Azerbaijan's economy has been negatively impacted by the COVID-19 pandemic. To diversify the economy and retain the younger generation, the country is focusing on investing in human capital development.

Azerbaijan has significant reserves of oil and natural gas, making it an important player in the energy sector. The exploitation of these resources has contributed to the country's economic development.

Azerbaijan primarily exports Crude Petroleum ($13.5B), Petroleum Gas ($5.73B), Refined Petroleum ($641M), Raw Cotton ($209M), and Gold ($202M) to countries such as Italy ($9.46B), Turkey ($2.83B), Russia ($931M), Israel ($898M), and Croatia ($741M). In terms of imports, Azerbaijan mainly brings in Cars ($815M), Wheat ($354M), Packaged Medicaments ($308M), Broadcasting Equipment ($283M), and Refined Petroleum ($260M), with major import partners including Turkey ($2.37B), Russia ($2.24B), China ($1.28B), the United Kingdom ($531M), and Georgia ($528M).

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