All values, unless otherwise stated, are in US dollars.
Before the 2020 Nagorno-Karabakh war, the economy of the Republic of Artsakh was small, but rapidly growing. The economy of Karabakh showed a relatively quick and confident recovery from the 1991-1994 war. In 1999, the GDP figure was $59 million, 80 percent down on the figure in Soviet times.[3] Yet, the GDP of the Republic of Artsakh reached $114 million in 2005, double the figure in 2001, registering economic growth of 14% (in current prices) in 2005,[4] and in 2009 it registered a GDP of $260 million, which increased to $320 million by 2010. Nagorno-Karabakh's GDP (PPP) for 2010 was estimated at $1.6 billion[citation needed].
According to official estimates of the Nagorno-Karabakh Statistical Service,[5] the GDP in current (market) prices increased by 116% between 2001 and 2007. The Consumer Price Index increased only by 34% during this period, which implies a real growth of about 60% in GDP during the six years 2001–2007. In 2007, agriculture accounted for 16% of GDP, manufacturing industries 15%, construction 9%, and the service sector 57%. The share of agriculture in GDP went down from 33% in 2002 to 16% in 2007, while the share of manufacturing and services increased correspondingly.
Most investments were in telecoms, gold mining, diamond polishing, jewelry and agriculture. In the Soviet Union, Nagorno-Karabakh was the largest per capita producer of grapes.[citation needed] The territory's major newspaper and publishing company was Azat Artsakh, which was founded in Stepanakert in 1923.[citation needed]
Nagorno-Karabakh is known for its mulberryvodka (Armenian: tuti oghi), commercially produced and exported under the brand name Artsakh by the Artsakh-Alco Brandy Company in Askeran District.[6][7]
Energy
Trghi-1 hydroelectric power station
Up until recently Nagorno-Karabakh Republic was known to operate at least one hydroelectric power plant near Mardakert, which was constructed during the Soviet times. The government hoped to build a number of small hydroelectric power plants — at a cost of $70–$80 million — that would supply both domestic needs and provide opportunities for export. In 2001 the republic imported 60 percent of its electricity from Armenia.[3]
On 12 April 2010 the prime ministers of NKR and Armenia inaugurated "Trghe-1" - the first in series of long anticipated hydro-electric stations in Nagorno-Karabakh. The name of the new electric energy company was "Artsakh HEK”, which already had a base capital of $5mln on the day of its inauguration. Prime Minister of Armenia, Tigran Sargsyan called on the public and the diaspora to buy the shares of "Artsakh HEPS" and to invest in NKR economy, saying that its security and future relies on its economic growth and economic self-sufficiency. Plans included the construction of two more mini-hydro-electric power stations on the same river – “Trghe-2 and “Trghe-3” by the end of 2010 and also “Mataghis-1” and “Mataghis-2” in 2011.[8] The realization of the given energetic program would give the chance to produce additional 120 million kwt/h of the electric power. By 2012 this would almost completely satisfy the requirements of the republic for the electric power, which would rise by then to 300 million kwt/h.
With these new power plants NKR hoped to become not only self-sufficient in terms of its electricity production, but also a net exporter of electric energy.
Road construction and infrastructure
Vardenis-Martakert Highway
One of Nagorno-Karabakh's most eye-catching pieces of infrastructure is the $15 million Goris-Stepanakert road, built right after the 1991-1994 war ended by funding from the Armenian diaspora.[3] This road through the Lachin corridor is the only one that connects the region with Armenia and the rest of the world.
Now the construction of the 168km "North-South" highway at a cost of only $25 million,[3] which connects Mardakert with Stepanakert and Martuni is completed.
In recent years a Lebanese-funded phone operator company "Karabakh Telecom" was launched. Total profit from communication services has increased 12.8 percent since 2008. The telecommunications sector was developed with Karabakh Telecom[9] investing millions of dollars in mobile telephony, spearheaded by a Lebanese company.
ArtsakhBank has been operational since 1996 and has branches in Stepanakert and throughout various locations in Nagorno-Karabakh.[10][11] It employs 243 people. Some of the leading Armenian banks also have branches in Nagorno Karabakh.[12][13]
The sector is growing dynamically. As of September 1, 2010, the volume of deposits made AMD 38,664.1 mln. (~USD 107 mln.), which is 33.1% more, as compared to the level of January 1, 2010. As compared to January 1, 2010, the volume of credits issued by commercial banks increased by 28.3%.[14]
The banking system is administered by Artsakhbank (the state bank) and a number of Armenian banks. The republic primarily uses the Armenian dram, while the Artsakh dram is also considered legal tender.
Mining
Nagorno-Karabakh is rich in natural resources of precious and semi-precious metals, such as gold and copper and other natural resources.
Copper and gold mining has been advancing since 2002 with development and launch of operations at Drmbon deposit.[15] Approximately 27-28 thousand tons (wet weight) of concentrates are produced[16] with average copper content of 19-21% and gold content of 35-55 g/t.[17] The mine is one of the biggest taxpayers of Nagorno-Karabakh[18] and employs 1200 workers of which 65% are local citizens.[19]
Copper and gold mining has been advancing since 2002 with development and launch of operations at Drmbon deposit.[20] Approximately 27–28 thousand tons (wet weight) of concentrates are produced[21] with average copper content of 19–21% and gold content of 32–34 g/t.[22]
Wine and brandy
Mulberry vodka
Wine growing and processing of agricultural products, particularly wine (i.e., storage of wine, wine stuff, cognac alcohol) is one of the prioritized directions of the economic development.[23] The region is known for wine-making since ancient times, especially the southern part, where the Artsakh vineyards are mainly found. It is home to the Khndoghni/Sireni grape variety. The climate of the region combined with its fertile soil allows to produce a unique variety of grapes, at an average height of 800 meters above sea level. Many wine karases (jugs) dating back to the 7th century, were found in the archaeological sites near the village of Togh. Amongst the wine producers formerly based in Artsakh include the Stepanakert Brandy Factory, operating since 1931 in Stepanakert with branches in Yerevan, Martuni and Karmir Shuka. The company produces a variety of cognac under the brand Madatoff, wine under the brand Berdashen, and fruit vodka under the brand Karabakh.[24]
The Artsakh Brandy Company, opened in 1998 in Aygestan village of Askeran Region, was also active in Artsakh. The factory produces a variety of cognac under the brand Artsakh Ohanyan, fruit brandy under the brand Artsakh, wine under the brand Artsakh Shushi, and vodka under the brand Ohanyan.[25] Kataro Winery of Anush-1 Company, opened in 2010 in Togh village of Hadrut Region, Artsakh. The winery produced a variety of Khndogni/Sireni wine from the vineyards of pre-2020 Artsakh, under the brand Kataro.[26] The Mika-Hadrut Winery, in Hadrut, Hadrut Region, produced a variety of cognac, wine and vodka under the brand Mika. Other producers include Askeran Wine, in Askeran, Askeran Region, for wine and vodka, Aragil Winery, in Shekher, Martuni Region, known for its Shekher wine, Balasanyan Winery, in Askeran, Askeran Region, known for its Tat U Pap wine and vodka, Lia Cooperative, in Martakert, Martakert Region, which produces Martakert wine, the Hayrapetyan Brothers Winery, in Karmir Shuka village of Martuni Region, which produces a variety of wine, the Tnjri-2000" Cooperative, in Martuni, Martuni Region, which also produces a variety of wine, and Piank Winery, in Khramort, Askeran Region, known for its Vanqasar wine.
External aid
NKR government has been a recipient of financial aid from the United States ($8 mln in 2010[27]) and Armenia ($30 mln).
Armenian Diaspora has also been instrumental in providing some financial assistance through "Hayastan" All-Armenian Fund, Monte Melkonian Fund, Artsakh Investment Fund as well as direct micro-assistance schemes.
Nagorno-Karabakh is a region in Azerbaijan, covering the southeastern stretch of the Lesser Caucasus mountain range. Part of the greater region of Karabakh, it spans the area between Lower Karabakh and Syunik. Its terrain mostly consists of mountains and forestland.
Stepanakert or Khankendi is a ghost city in the Nagorno-Karabakh region of Azerbaijan. The city was under the control and the capital city of the breakaway Republic of Artsakh prior to the 2023 Azerbaijani offensive in the region. The city is located in a valley on the eastern slopes of the Karabakh mountain range, on the left bank of the Qarqarçay (Karkar) river.
Artsakh, officially the Republic of Artsakh or the Republic of Nagorno-Karabakh, was a breakaway state in the South Caucasus whose territory was internationally recognised as part of Azerbaijan. Between 1991 and 2023, Artsakh controlled parts of the former Nagorno-Karabakh Autonomous Oblast of the Azerbaijani Soviet Socialist Republic, including its capital Stepanakert. It had been an enclave within Azerbaijan from the 2020 Nagorno-Karabakh war until the 2023 Azerbaijani offensive, when the Azerbaijani military took control over the remaining territory controlled by Artsakh. Its only overland access route to Armenia after the 2020 war was via the five kilometres (3.1 mi)–wide Lachin corridor, which was placed under the supervision of Russian peacekeeping forces.
The Artsakh Defence Army was the defence force of the breakaway Republic of Artsakh. Established in 1992, it united previously disorganized defence units which were formed in the early 1990s.
The administrative divisions of the Republic of Artsakh were of two types; provinces and cities. There were six provinces and one special administrative city.
Khojaly is a town in the Khojaly District of Azerbaijan, in the region of Nagorno-Karabakh.
Askeran is a town in the Khojaly District of Azerbaijan, in the region of Nagorno-Karabakh. Until 2023 it was controlled by the breakaway Republic of Artsakh, as the centre of its Askeran Province. The town had an ethnic Armenian-majority population until the exodus of the Armenian population of Nagorno-Karabakh following the 2023 Azerbaijani offensive in Nagorno-Karabakh. It is located on the left bank of the Karkar River (Qarqarçay), approximately 11 kilometres (7 mi) northeast of the regional capital, Stepanakert.
Hadrut is a town in the Khojavend District of Azerbaijan, in the region of Nagorno-Karabakh.
Tugh or Togh is a village in the Khojavend District of Azerbaijan, in the region of Nagorno-Karabakh. The village had a mixed Armenian-Azerbaijani population before the First Nagorno-Karabakh War, the Azerbaijani inhabitants fled the fighting in 1991, and the Armenian population fled the village during the 2020 Nagorno-Karabakh war.
This page lists in alphabetical order articles related to the Republic of Artsakh and Nagorno-Karabakh region. For a topically arranged list of articles, please see Outline of the Republic of Artsakh.
Oghi is an Armenian spirit distilled from fruits or berries. It is widely produced as moonshine from home-grown garden fruits all across Armenia, where it is served as a popular welcome drink to guests and is routinely drunk during meals. Arguably, Armenian oghi is not "vodka" at all and merely became thought of as such during the Soviet era in Armenia.
Ashot Ghulyan, also known as Bekor (Shard), was an Armenian military leader during the First Nagorno-Karabakh War. He was awarded the Hero of Artsakh honorary title.
Armenian wine is wine made in Armenia and the Armenian-populated Republic of Artsakh, in the region of South Caucasus. Armenia is one of the oldest wine producing regions of the world. In particular, the oldest known winery, Areni-1 winery, was found in Armenia's Areni region, which is still known for its wine production and endemic grapes.
The Law on Abolishment of Nagorno-Karabakh Autonomous Oblast was a motion passed by the Supreme Soviet of the Republic of Azerbaijan and signed into law by the President of Azerbaijan Ayaz Mutalibov on November 26, 1991. The law had been prompted by a vote in the National Assembly of the Nagorno-Karabakh Autonomous Oblast in favor of uniting itself with the Armenian SSR on 20 February 1988. The vote was followed by an independence referendum in 1991 which was boycotted by the Azerbaijani population of the Oblast; most voted in favor of independence. While these votes and elections had mainly been conducted in a relatively peaceful manner, in the following months, as the Soviet Union disintegrated, it gradually grew into an increasingly violent conflict between ethnic Armenians and ethnic Azerbaijanis. Both sides claimed that ethnic cleansing was being carried out. The declaration of secession from Azerbaijan was the final result of a territorial conflict regarding the land.
Movses Hranti Hakobyan is a former senior Armenian military official and the former commander of NKR Defense Army and former Chief of the General Staff of the Armenian Armed Forces. From 19 November 2018 until his resignation on 18 November 2020, Hakobyan served as the Chief Military Inspector of the Armed Forces.
The Diocese of Artsakh is one of the largest dioceses of the Armenian Apostolic Church in Nagorno-Karabakh. It is named after the historic province of Artsakh; the 10th province of the Kingdom of Armenia. The diocesan headquarters are located on Ghazanchetots street 72, in the town of Shushi. The seat of the bishop is the Ghazanchetsots Cathedral. On 21 January 2022, Vrtanes Abrahamyan was appointed Primate of the Diocese.
Askeran Province was a province of the breakaway Republic of Artsakh, de jure part of the Khojaly District of the Republic of Azerbaijan. It was in the center of Artsakh, surrounding the capital, Stepanakert. It was notable for containing the Tigranakert of Artsakh.
Vitaly Mikhaili Balasanyan is an Artsakhi politician and retired general. He served as the head of the National Security Council of the self-proclaimed Republic of Artsakh from November 2016 to November 2019 and again from December 2020 to January 2023. For his services in the First Nagorno-Karabakh War, he was awarded the country's highest title, Hero of Artsakh. He previously served as a member of Artsakh's National Assembly. He twice ran, unsuccessfully, for the office of President of Artsakh.
From the breakup of the Soviet Union in 1991 to the 2023 Azerbaijani offensive in Nagorno-Karabakh, the city of Stepanakert was the capital of the unrecognized breakaway Republic of Artsakh, while being internationally recognized as part of Azerbaijan.
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