Azerbaijan has agreed with Formula 1 that Baku will continue hosting Grand Prix races for the next three years. Many in the country were looking forward to the expiration of the previous deal this year as they argue the races have not benefited the country. 

On April 29, Formula 1 announced that it would continue its Azerbaijan Grand Prix through 2026, as agreed with the host country. Azerbaijan signed a five-year contract with Formula 1 when it first started to host the race in 2016, and later extended it until 2023. 

"The Baku City Circuit has become a hugely popular venue for Formula 1. It is an incredible circuit which always delivers huge drama, and has played host to some of the most exciting races in recent memory," Stefano Domenicali, President and CEO of Formula 1, said as quoted in the statement. 

"We are delighted to extend our relationship with the country of Azerbaijan and look forward to continuing our growth together."

Azerbaijan's minister of youth and sports Farid Gayibov was similarly enthusiastic: "We are thrilled to confirm our continued partnership with Formula 1. Ever since we first hosted this event in 2016, the economic, social, and cultural impact of the sport on our city and country has been remarkable." 

But economists and Baku residents have for years been questioning the efficacy of hosting the races. It seems to have brought little benefit while periodically disrupting traffic in the capital and compelling pedestrians to walk amid fenced streets has been its only tangible effect. 

Natig Jafarli, economist and politician from the Republican Alternative Party, says that the government cannot cite any benefits that would justify hosting the event such as indirect revenues from tourism, especially given that the country's land borders have been closed for three years. 

"We have never seen any significant jumps in tax revenues in the months that the Grand Prixes were held," he told local news agency Turan. "One does not get rich from Formula 1 just during the time the race is held. No country in the world that hosts Grand Prixes becomes rich in only three or five days. The idea is to make the country famous and attract investors as Formula 1 fans happen to be wealthy people. A country that develops tourism and makes it a priority cannot keep its land borders shut." 

Another economist, Toghrul Valiyev waxed sarcastic about the utility of hosting the races. "I think it is wrong to look at this issue from an economic perspective. Let's look at this race from the perspective of value. What is the value that unites Azerbaijan?" he asked in a Facebook post. 

"Unfortunately, the value that unites us is the fences. The fences play an important role both in physical form and in our relationships. No matter where we go or what we do, everywhere we hear 'no', 'no permission', 'this information can't be disclosed', 'you can't stand here', 'don't get involved in these matters, they know better", etc. … During this period, the peak of fence concentration is observed. Even areas relatively open to people during the remaining 51 weeks of the year are closed: it is the 'peak of fences'."