Azerbaijan is situated in eastern Trans-Caucasia, bordering Armenia, Georgia, the Russian Federation (Daghestan Autonomous Republic), Iran, Turkey and the Caspian Sea. It is the largest of the three Trans-Caucasian republics, covering 86,6 thousand square kilometres. Azerbaijan is split in two, with the Nakhichevan Autonomous Republic separated from Azerbaijan proper by southern Armenia. Approximately 20 per cent of Azerbaijani territory is occupied by Armenia. The ethnically Armenian (60 %) region of Nagorno-Karabakh is an area of 4,000 square kilometres situated in the south-west of Azerbaijan.
The level of the largest salt-water lake in the world, the Caspian Sea, is subject to continuous change. In 1929 its surface area was larger than the Black Sea at 422,000 square kilometres, before it started to decline reaching a record low point in 1951. Since then it has risen to about 378,000 square kilometres. Higher water levels are causing problems along the Azeri coast. The greater part of the republic includes the lowlands of the River Kura and the lower reaches of its tributary, the Araks. The oil-rich Absheron Peninsula on which the country's capital city Baku is located, juts out into the Caspian Sea.
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