Azerbaijan is situated in the Caucasus region of Eurasia. Three physical features dominate Azerbaijan: the Caspian Sea, whose shoreline forms a natural boundary to the east; the Greater Caucasus mountain range to the north; and the extensive flatlands at the country's center. About the size of Portugal or the US state of Maine, Azerbaijan has a total land area of approximately 86,600 square kilometers, less than 0.5% of the land area of the former Soviet Union. Of the three Transcaucasian states, Azerbaijan has the greatest land area. Special administrative subdivisions are the Nakhchivan Autonomous Republic, which is separated from the rest of Azerbaijan by a strip of Armenian territory, and the Nagorno-Karabakh Autonomous Region, entirely within Azerbaijan. The status of Nagorno-Karabakh was under negotiation in 1994. Located in the region of the southern Caucasus Mountains, Azerbaijan borders the Caspian Sea to the east, Georgia and Russia to the north, Iran to the south, and Armenia to the southwest and west. A small part of Nakhchivan also borders Turkey to the northwest. The capital of Azerbaijan is the ancient city of Baku, which has the largest and best harbor on the Caspian Sea and has long been the center of the republic's oil industry.
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