Azerbaijan, a nation with a Turkic and majority-Muslim population - regained its independence after the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost 16% of its territory and must support some 800,000 refugees and internally displaced persons as a result of the conflict. Located in south-western Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range.