The Azerbaijan Navy is the naval component of the Azerbaijani Armed Forces operating in the Caspian Sea. The inception of Azerbaijani Naval Forces dates back to August 5, 1918 when the government of the Azerbaijan Democratic Republic established the navy force on the basis of the Russian Imperial fleet deployed in the Azerbaijani sector of the Caspian Sea. The navy had 6 ships. After the establishment of Soviet rule in Azerbaijan, the navy was transferred to be under the jurisdiction of the Soviet Navy. In 1991, with the collapse of the Soviet Union, the Azerbaijani fleet of the Soviet Navy was divided between Azerbaijan and the Russian Federation. In July 1992, the Azerbaijani ships were put into operation under Azerbaijani Flag in the Azerbaijani sector of the Caspian Sea. According to the Presidential Decree of Heydar Aliyev from 1996, August 5 was declared the Day of Azerbaijani Navy. As of today, the Azerbaijani Navy is considered the second strongest navy in the Caspian Sea after the Russian fleet.
Jane's Fighting Ships said in their entry for the Azeri Navy in their 2001–2002 edition that 'the Coast Guard was formed in July 2002 with ships transferred from the Caspian Flotilla and the Border Guard. By 1995 overall control had been resumed by the Russians in order to provide adequate maintenance and support. The aim is to be independent again in due course. It named the navy's commander at the time as Captain Rafig Asgarov. Currently, the navy is led by Vice Admiral Shahin Sultanov.