The modern-day Republic of Azerbaijan, on the western coast of the Caspian Sea, is bordered on the north by Russia, on the south by Iran, on the west by Armenia, and on the northwest by Georgia. A country at the center of the historic Silk Road, Azerbaijan is located at a strategic crossroads between East and West. After conquest by Muslim armies and conversion to Islam, Azerbaijanis came under various forms of rule, gaining independence after the collapse of the Soviet Union in 1991. Similar to the other newly independent states, the country maintains a Soviet-style government. Comprised of more than 70 different ethnic groups, Azerbaijan has a unique cultural diversity that is derived from traditional Islamic and Russian influences. Azerbaijan, for decades an oil producer, has emerged as a key transit state for Caspian basin oil and gas destined for Western markets. However, Azerbaijan supports some 571,000 internally displaced persons as a result of the ongoing conflict with Armenia over the Nagorno-Karabakh region, putting additional strain on its economy.