The Baku Archipelago: From Soviet Prison Island to Multi-Billion Dollar Modern Oasis

Countries & Cities · Published 30 September 2026 Swipe more like this →

In short: Lying in the shallow waters off the coast of Azerbaijan, the Baku Archipelago is undergoing a radical transformation. Once a desolate site for Soviet-era prisoners and oil-damaged landscapes, these islands are now the focus of massive, ambitious development projects designed to turn them into hubs for tourism, commerce, and international summits.

The Baku Archipelago consists of a series of coastal islands and sandbanks located in the Caspian Sea. Their modern cartography dates back to the 18th century, when hydrographer Fedor I. Soimonov first mapped the region, leaving behind a legacy of Russian names for most of the islands. Today, the archipelago remains largely uninhabited by people, serving primarily as a base for gas-extraction infrastructure and a lighthouse, though it continues to provide a vital refuge for wildlife like teal ducks, herring gulls, and grebes.

Ecological challenges define much of the current landscape. Decades of oil extraction in the bay have severely damaged local vegetation, leaving many islands nearly barren. While the area once served as an ideal ecosystem for the Caspian seal, pollution has forced a decline in biodiversity, though sturgeon can still be found in cleaner pockets of water. An automatic monitoring station on Svinoy Island currently tracks these environmental conditions, highlighting the ongoing tension between industrial activity and the natural world.

The future of the archipelago is marked by grand, capital-intensive visions. Boyuk Zira island is slated for a major expansion featuring residential zones, a military port, and a park designed to withstand the region's strong winds. Planners intend to honor the island's history as a place of exile under the Soviet Union with a memorial grave, while simultaneously building a mosque, church, and synagogue to reflect Azerbaijan's religious tolerance. Foreign investors have committed between two and three billion manat to the project.

Beyond the natural islands, developers have looked toward artificial solutions. The Khazar Islands project, located 25 km south of Baku, once promised to house 800,000 residents and feature an Azerbaijan Tower taller than the Burj Khalifa. While Avesta management initially targeted completion between 2020 and 2025, progress on these artificial structures appears to have stalled as of 2023, leaving the future of such massive engineering feats uncertain.

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