In December 2013 Formula One President and CEO Bernie Ecclestone initially suggested the race might debut in 2015, partly as a consequence of the Korean Grand Prix organisers being in breach of contract. By July 2014 the debut had been confirmed for 2016. The event is organised by the Baku City Circuit Operation Company.
The 6.003 km anti-clockwise layout was designed by Hermann Tilke. The circuit begins adjacent to Azadliq Square and loops around Government House before heading west along a 1 km straight toward the Palace of the Shirvanshahs and the historic Maiden Tower. Here the track narrows to just 7.6 metres at an uphill section threading through the Old City — the tightest passage on the Formula One calendar — before opening onto a 2.2 km straight along Neftchilar Avenue back to the start-finish line.
The combination of a long main straight and an ultra-slow Old City section produces an extreme range of speeds within a single lap, a characteristic that drew comparisons to the Montjuïc circuit that hosted the Spanish Grand Prix in the 1970s. The circuit was projected from the outset to be the fastest street circuit in the world, with projected top speeds approaching 360 km/h.
The inaugural Formula One race at the circuit was the 2016 European Grand Prix. Before a wheel was turned in competition the event attracted attention for engineering and safety concerns: Pirelli discovered that 90 percent of the rear tyres used during free practice had been cut by bolt heads securing kerbs that had not been drilled in sufficiently deep. Both Jenson Button and Nico Rosberg raised concerns publicly about the minimal run-off areas, arguing that a high-speed tyre failure or mechanical incident near the walls could have severe consequences. Rosberg later recalled the pit lane entrance adjacent to the 350 km/h main straight as one of the most dangerous features he encountered across his Formula One career, a view that FIA race director Michael Masi disputed.
A further incident during free practice saw Valtteri Bottas forced to miss Free Practice 3 entirely after a loose drain cover caused significant damage to his Williams FW38. The same issue recurred in the 2019 Azerbaijan Grand Prix, when George Russell hit a loose drain cover during the opening practice session, prompting its cancellation.
Despite the concerns, Bottas set a new unofficial Formula One top speed record in qualifying for the 2016 European Grand Prix. Williams reported data showing him reaching 378 km/h (235 mph), surpassing the previous benchmark of 372 km/h (231 mph) set by Juan Pablo Montoya for McLaren in testing at Monza in 2005.
The 2016 GP2 race supporting the European Grand Prix was chaotic, with 12 of 22 starters failing to finish — an early indicator of the attrition the circuit would regularly generate across all categories.
From 2017 the race was rebranded as the Azerbaijan Grand Prix. The circuit quickly earned a reputation for unpredictability, producing safety car periods, dramatic crashes, and reversals of fortune at a rate higher than almost any other venue on the calendar. The combination of the narrow Old City section — where a single mistake ends a race — and the long straight that funnels wheel-to-wheel racing at extreme speeds has made Baku a consistent provider of memorable events.
The Baku City Circuit Operation Company (Azerbaijani: Bakı Şəhər Halqası Əməliyyat Şirkəti) has managed the event since its inception. In October 2022 Executive Director Arif Rahimov, who had held the post for seven years, was dismissed. Magsud Farzullayev was appointed acting executive director.
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