Stepanakert (Armenian: Ստեփանակերտ, romanized: Step'anakert, Eastern Armenian pronunciation: [əstɛpʰanaˈkɛɾt]), or Khankendi (Azerbaijani: Xankəndi, Azerbaijani: [xɑncænˈdi] (listen)), is the de facto capital and the largest city of the self-proclaimed Republic of Artsakh, though internationally recognized as part of Azerbaijan. The city is located in a valley on the eastern slopes of the Karabakh mountain range, on the left bank of the Qarqarchay river.[4]
The area that would become Stepanakert was originally an Armenian settlement named Vararakn.[5] During the Soviet period, the city was made the capital of the Nagorno-Karabakh Autonomous Oblast, becoming a hub for economic and industrial activity.[1] 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.
The city is a regional center of education and culture, being home to Artsakh University, musical schools, and a palace of culture. The economy is based on the service industry and has varied enterprises, food processing, wine making, and silk weaving being the most important.[4] As of 2021, the population of Stepanakert is 75,000.[6]
Medieval Armenian sources attest to a settlement in the locale called Vararakn (Վարարակն, meaning "rapid spring" in Armenian).[7][1] Vararakn remained the local Armenian name for the town until 1923.[8]
Most Azerbaijani sources claim that the settlement was built in late 18th century, as a place of rest for the heads of the Karabakh Khanate. In the first years, it was known as "Khan's village" (Azerbaijani: Xanın kəndi) because only the khan's family and his relatives lived there. By the 19th century, the settlement was renamed Khankendi ("village of the khan" in Azerbaijani).[9]
The town was renamed Stepanakert ("the city of Stepan") in 1923, after Armenian Bolshevik revolutionary Stepan Shahumian. The name is formed from the words Stepan (Armenian: Ստեփան) and "kert" (Armenian: կերտ, meaning "created").[1]