Stepanakert, officially Khankendi, is a 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.
The area that would become Stepanakert was originally an Armenian settlement named Vararakn. During the Soviet period, the city was made the capital of the Nagorno-Karabakh Autonomous Oblast, becoming a hub for economic and industrial activity. In addition, the city became a hotbed for political activity, serving as the center for Armenian demonstrations calling for the unification of Nagorno-Karabakh with Armenia. Stepanakert suffered extensive damage following the dissolution of the Soviet Union and the outbreak of the First Nagorno-Karabakh War and passed into the hands of local Armenians with the establishment of the Republic of Artsakh. During the Soviet and Artsakh periods, the city was a regional center of education and culture, being home to Artsakh University, musical schools, and a palace of culture. The economy was based on the service industry and had varied enterprises, food processing, wine making, and silk weaving being the most important. As of 2021, the population of Stepanakert was 75,000.
