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As Christmas approaches, here's to peace in the Caucasus region - or perhaps not. According to the Azerbaijan Minister of Defence Industry Yaver Jamalov, in 2010, his country increased its production of military hardware 3.6 times that of 2009 - and a staggering 115 times when compared to 2006! During this time, Azerbaijan completely eliminated its dependence on some imported military products.

All this may be troubling news to Azerbaijan's neighbor, Armenia - the two countries are still technically in a state of war following military confrontation in the early 1990s that rocked the region and resulted in a loss of almost 1/6 of Azerbaijan's territory to Armenian ethnic forces of the Nagorno-Karabakh region. According to Minsiter Jamalov, the main task of the Ministry of Defense is a "recovery and reorganization of enterprises of the Soviet period that will be able to produce various defense products. " Prior to March 2011, Azerbaijan is planning to commission eight new production sites that will build ammunition and new weapons. Currently, Azeri factories are producing small arms, ammunition, camouflage nets, grenade launchers, mortars, armored vehicles and several pistols that meet NATO standards; they've also upgraded some left over Soviet military technology for the Azeri armed forces. Earlier, Azerbaijani Finance Minister Samir Sharifov said that the increase in his country's military spending is due to rising tensions in the Nagorno-Karabakh region.