Baku, bah KOO (pop. 1,084,000; met. area pop. 1,661,000), is the capital and largest city of Azerbaijan. Baku, which is also spelled Baky, is located on the east coast of the country along the Caspian Sea. It is Azerbaijan's chief port and the country's political, economic, and cultural center. The Baku area serves as an important oil-producing region. Its products also include cotton, natural gas, processed meat, ships, and textiles.