section_path: Reign (1762–1796)/Foreign affairs
section_name: Foreign affairs
paragraph_text: Foreign affairs
  
  During her reign, Catherine extended the borders of the Russian Empire by some 520,000 square kilometres (200,000 sq mi), absorbing New Russia, Crimea, the North Caucasus, right-bank Ukraine, Belarus, Lithuania, and Courland at the expense, mainly, of two powers—the Ottoman Empire and the Polish–Lithuanian Commonwealth.
  
  Catherine's foreign minister, Nikita Panin (in office 1763–1781), exercised considerable influence from the beginning of Catherine's reign. A shrewd statesman, Panin dedicated much effort and millions of rubles to setting up a "Northern Accord" between Russia, Prussia, Poland, and Sweden to counter the power of the Bourbon – Habsburg League. When it became apparent that his plan could not succeed, Panin fell out of favour with Catherine and she had him replaced with Ivan Osterman (in office 1781–1797).
  
  Catherine agreed to a commercial treaty with Great Britain in 1766, but stopped short of a full military alliance. Although she could see the benefits of friendship with Britain, Catherine was wary of Britain's increased power following its victory in the Seven Years' War, which threatened the European balance of power.