The decree concerning the development of productive forces in the mountainous regions, including Nagorny Karabakh autonomous area was passed before the beginning Nagorny Karabakh conflict. Intensive construction works were going on in Nagorny Karabakh and the occupied regions at the time of the beginning of the conflict.
Large-scale enterprises were opened and new machinery and transport vehicles were delivered to the area. Large enterprises producing building materials and marble factory were also built in Nagorny Karabakh. The entire material-technical basis established for new construction projects were destroyed and none of the potential projects were implemented as a result of Armenian occupation.
The industries of the occupied areas played an important role in the economy of Azerbaijan. Food, light industry and building enterprises were strongly developed.
Large agricultural and natural resources produced the most positive impact on the development of the foregoing branches.
Butter-cheese, winemaking and partly light industries of great importance provided the population with foodstuffs and were the most developed than other industrial branches in occupied territory. Nagorny Karabakh Autonomous Region held the 4th place among the economical regions of former Azerbaijan SSR (Absheron, Ganja-Gazakh, Nakhichevan AR) thanks to its industrial development level and directions.
The industrial potential of the occupied regions was mainly concentrated in the area of Nagorny Karabakh Autonomous Region. Most of the industrial and building enterprises (137 enterprises) were located in this area. It produced 40% industrial product in the occupied areas and concentrated 18.7% of key assets. Fizuli and Agdam regions had 5% industrial product and 41% key assets. The place in industries and construction sector was occupied by Aghdam and Fizuli administrative regions (51% industrial product and 41% key assets). The industry of the remaining five administrative regions – Lachin, Kelbejer, Jabrail, Gubadly and Zangilan was too weak. 27% of common industrial products, 3,4% of key assets in 1988, in Azerbaijan formed a share of occupied regions.
The occupied regions had the following specific weights in the Azerbaijan SSR: Materials for the walls building – 11,0%, building lime – 7,8%, building materials – 3,0%, shoe – 11,0%, meat – 5,0%, tinned foods – 6,9%, cow’s milk – 25,2%, wine materials – 35%, raw silk – 13,5%, wool – 19,3% mineral water – 11,5% and etc.
Istisu and Turshsu mineral water-packing enterprises, Karabakh and Agdam marble stone factories, high-quality and widely popular wines Agdam and other products of wine factories, butter-cheese enterprises, a weaving mill, shoe factory, Karabakh silk complex and others were major contributors in these regions. More than 50 branches of Baku enterprises remain in the occupied areas. In total, over 183 industrial and 127 construction enterprises are remaining in the region.
Powerful communication lines and objects were established in the region including 25,000 km of motor and country roads, 160 bridges with a total length of 3,984 m, electric lines with a total length of 14,500 km, 2,500 transformers, 2,300 km of water pipes, 2,000 km of gas pipes, 240 km of sewage lines, 160 water basins, more than 34 gas distribution stations and phone stations for 35,000 numbers were destroyed in the area.
There were four airports, Baku-Agdam and Horadiz-Nakhchyvan gas pipelines and other strategic objects left in the occupied areas.
More than 310 industrial and construction objects remained in the occupied by Armenia regions. These objects gave 11,0% of wall materials, 11% of shoe production, 25.2% of butter, 35% of wine materials, 13.5% of raw silk, 15% of mineral waters and other goods produced in Azerbaijan.