Baku, also known as Baky or Bakı, is the largest city in the Caucasus and the capital of Azerbaijan. Baku is on the coast of the Caspian Sea on the southern tip of the Absheron Peninsula. There are three major divisions in Baku: İçəri Şəhər the Soviet built city, and the newest part of the city. The population as of January 2012 was 2 137, 200.