Exploring Azerbaijan's Military Spending: A Comprehensive Overview

Azerbaijan's military expenditure has seen a significant increase in recent years, with a particular focus on developing its armed forces into a professional, well-trained, and mobile military. In 2020, Azerbaijan was the third most militarised country in the world, and its military budget has grown approximately 29-fold since the 1990s. The country's military spending as a share of its gross domestic product (GDP) reached 5.3% in 2021, with an annual budget of $2.6 billion. Azerbaijan's military spending has been influenced by its rapid economic growth, particularly from revenues in the oil industry, which has allowed for increased investment in military equipment and infrastructure.

Azerbaijan's military budget increased by 20% after the second Nagorno-Karabakh war

The Second Nagorno-Karabakh War, which took place in 2020, was an armed conflict between Azerbaijan, Armenia, and the self-declared Armenian breakaway state of Artsakh. The war lasted 44 days and resulted in an Azerbaijani victory. This victory demonstrated the significant growth of Azerbaijan's military capabilities since the first Nagorno-Karabakh War in the 1990s.

Azerbaijan's military budget has seen a steady increase over the years, rising from around $300 million in 2005 to $2.46 billion in 2009. The country's military expenditures are funded primarily through its oil industry, which has contributed to a 45-fold increase in GDP between 1995 and 2022.

In addition to increasing its military budget, Azerbaijan has also been working to modernise and expand its armed forces. The country has been undergoing extensive modernisation and capacity-expanding programs, with the total armed forces numbering 56,840 men in the land forces, 7,900 in the air force and air defence force, and 2,200 in the navy. There are also associated forces, such as the Azerbaijani National Guard, which further bolster the country's military capabilities.

The Second Nagorno-Karabakh War highlighted the crucial role of drones in modern warfare. Azerbaijan's widespread use of drones, particularly the Turkish-made Bayraktar TB2, was seen as a key factor in determining the conflict's outcome. The use of drones enabled Azerbaijan to conduct precise strikes and reconnaissance missions, relaying coordinates of targets to their artillery.

The conflict also brought to light the issue of third-party involvement, with accusations and allegations made against several countries. Turkey provided military support to Azerbaijan, while Armenia received support from Russia, who supplied them with weapons and indirect logistical support.

The Second Nagorno-Karabakh War resulted in a significant shift in the control of territories in the region. Azerbaijan regained control of not only the surrounding territories but also one-third of Nagorno-Karabakh itself. This outcome has had a lasting impact on the region, with ongoing border tensions and violations of the ceasefire agreement.

Azerbaijan's military expenditure was 5.3% of its GDP in 2021

Azerbaijan's military spending has historically been higher than that of neighbouring Armenia, which spent 4.4% of its GDP on its military in 2021. However, Armenia's military expenditure as a proportion of its GDP has grown faster than Azerbaijan's, increasing from 3% in the early 1990s to 13% in 2020. In 2020, Armenia was the second most militarised country in the world and the first in the South Caucasus, according to the Global Militarization Index.

Azerbaijan's military budget covers its armed forces, which consist of three branches: the Azerbaijani Land Forces, the Azerbaijani Air and Air Defence Force, and the Azerbaijani Navy. The country also has associated forces, including the Azerbaijani National Guard, the Internal Troops of Azerbaijan, and the State Border Service, which can be involved in state defence under certain circumstances. Azerbaijan's military hardware includes 220 main battle tanks, 595 armoured combat vehicles, 270 artillery systems, 106 aircraft and 35 helicopters.

Since the fall of the Soviet Union, Azerbaijan has been working to develop its armed forces into a professional, well-trained, and mobile military. The country has been undergoing extensive modernisation and capacity-expanding programs, and its military capabilities have grown significantly, as demonstrated by its victory in the Second Karabakh War in late 2020.

Azerbaijan's military spending increased by 17% in 2020, just before the war

Azerbaijan's military spending increased by 17% in 2020, just before the Second Nagorno-Karabakh War with Armenia in 2020. This increase in military spending was part of a broader trend of rising defence budgets in the country. Azerbaijan's military budget has grown significantly since the early 2000s, increasing from around $300 million in 2005 to $2.46 billion in 2009.

The rise in defence spending is closely linked to the country's economic growth, particularly revenues from the oil industry. Between 1995 and 2022, Azerbaijan's GDP grew 45-fold, while its military budget expanded 29-fold. This has enabled the country to invest in modernising and expanding its military capabilities, including the acquisition of new weapons and equipment.

The increase in military spending in 2020, just before the conflict with Armenia, highlights the country's focus on enhancing its military strength. Azerbaijan's military expenditures for the period since the first Nagorno-Karabakh War in 1995 are about five times higher than Armenia's. This has allowed Azerbaijan to conduct extensive modernisation and capacity-building programmes, improving the readiness and capabilities of its armed forces.

The Azerbaijani military's victory in the Second Nagorno-Karabakh War demonstrated the significant growth of the country's military capabilities. The conflict also highlighted the role of external suppliers in providing weapons and equipment to both sides. Azerbaijan has diversified its arms suppliers in recent years, procuring weapons and ammunition from countries such as Israel, Turkey, and Ukraine.

Azerbaijan's military budget increased from $300 million in 2005 to $2.46 billion in 2009

Azerbaijan's military budget has seen a significant increase in recent years, rising from $300 million in 2005 to $2.46 billion in 2009. This substantial growth in military expenditure reflects the country's commitment to developing a robust and well-equipped military force.

The Republic of Azerbaijan re-established its armed forces, known as the Azerbaijani Armed Forces, on October 9, 1991, following the country's independence from the Soviet Union. The Azerbaijani Armed Forces consist of three branches: the Land Forces, the Air and Air Defence Force, and the Navy. Additionally, the country has associated forces, including the National Guard, Internal Troops, and the State Border Service, which can be mobilised for defence if needed.

The increase in military spending from 2005 to 2009 represents a significant portion of Azerbaijan's overall economic growth during that period. The country's GDP grew impressively, and the military budget expansion kept pace, increasing by 29 times between 1995 and 2022. This growth in military expenditure is attributed to revenues from the country's oil industry, which contributed to the substantial increase in Azerbaijan's defence capabilities.

The rise in defence spending has enabled Azerbaijan to invest in military hardware and infrastructure. As of 2009, the Azerbaijani military consisted of approximately 56,840 personnel in the land forces, 7,900 in the air and air defence forces, and 2,200 in the navy. The country also has a substantial number of former service personnel with recent military experience. This increase in military expenditure has allowed Azerbaijan to enhance its military capabilities and readiness, as demonstrated by its victory in the Second Karabakh War in 2020.

Azerbaijan's military spending has not been without controversy, however. In 2008, a report by the International Crisis Group highlighted issues such as corruption, nepotism, and mistreatment within the country's conscript army. Despite these challenges, Azerbaijan has continued to prioritise military development, aiming to create a professional, well-trained, and mobile armed forces.

Azerbaijan's military spending is funded by revenues from the oil industry

Azerbaijan's military spending is heavily funded by revenues from its oil industry. Between 2010 and 2015, a hike in oil revenues coincided with a rapid increase in the country's defence spending. The largest amount of money that the State Oil Fund transferred to the state budget during this period was used to fund military projects.

Azerbaijan's military budget is highly dependent on oil revenues transferred to the state budget. Between 2011 and 2015, the cost of maintaining the military was US$16.064 million, accounting for 56.5% of overall military spending between 1995 and 2018. This trend is further illustrated by the correlation between oil revenue transfers to the state budget and military expenditures from 2008 to 2019.

The increase in Azerbaijan's economic and military power has altered the balance of power in the region. Between 1995 and 2022, Azerbaijan's GDP grew 45-fold, while its military budget expanded 29-fold. In comparison, Armenia's GDP increased 15-fold, and its military spending only 13-fold.

Azerbaijan's military spending as a share of its GDP declined to 4.55% in 2022. However, the previous two years recorded a significantly higher ratio than earlier years.

The country's military expenditures are not fully transparent, making it challenging to track the use of military funding. Azerbaijan's primary trade partner for arms is Russia, with Azerbaijan purchasing billions of dollars worth of arms and military ammunition. Israel is the second-largest military trade partner, selling $5 billion worth of arms and military equipment. Azerbaijan also procures ammunition and military technology from Belarus and various other countries.

The lack of transparency in Azerbaijan's military trade, particularly with Russia, makes it difficult to determine the specifics of these transactions. Despite the economic windfall from oil revenues, Azerbaijan's management of these funds has been criticised for failing to improve the welfare and democracy of the country.

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