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The history of Naftalan begins in 1873. At that time, medical oil was extracted from shallow wells in the usual, manual way. The city is located in the foothills of the north-eastern slope of the Lesser Caucasus, on the banks of the Naftalan River. Summer is hot here (the average temperature in July is 26 ° C), the winter is mild (the average temperature in January is 2 ° C).

On the bank of the Naftalan River, there are drilling wells producing naftalan medical oil, which is used for baths and coatings, followed by irradiation with solar or ultraviolet rays.

Since 1926, a specialized health resort "Naftalan" began to function, where people from all parts of the USSR came to be treated. They treated diseases of the musculoskeletal system, gynaecological, neurological and other ailments. It was also a favourite resort of the Soviet elite.

Now, in the territory of Naftalan there are a lot of hotels and sanatoriums of the international class that provide treatment for more than 70 types of diseases.