The maritime boundary between Azerbaijan and Russia would not be finalized for over a decade following the dissolution of the Soviet Union in 1991. In addition to these bilateral negotiations, all the Caspian Sea littoral countries were involved in discussions over the legal status of the Caspian: was it to be treated as a sea or a lake in international law?

Russia and Azerbaijan established their maritime boundary after the two States agreed to a compromise line in 2002. Their seabed boundary was delimited using a modified equidistance line that extends for 72 nautical miles from the land boundary terminus in the west to the tripoint with Kazakhstan in the east.

In 2018, the legal status of the Caspian Sea was resolved by the littoral States that form its coastal perimeter. A multi-state agreement was subsequently signed, which included Azerbaijan and Russia.

Despite political disagreements regarding Armenia and Ukraine, Russia and Azerbaijan have consistently invested in the economic development of the Caspian region.

Azerbaijan and Russia also share a land boundary.