Stepanakert ( Armenian : Õ Õ Õ Ö Õ Õ Õ Õ Õ Ö Õ ; known as XankÉ ndi in Azerbaijan , and translated as Khankendi ) is the capital city of the Nagorno-Karabakh Republic , a de facto independent republic . According to medieval Armenian sources , the settlement was first mentioned as Vararakn ( Õ Õ Ö Õ Ö Õ Õ Õ , meaning `` rapid spring '' in Armenian ) which it remained until it was renamed Khankendi in 1847 .