History of Russia deficit required borrowing, primarily from Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. For its spending, Russia obtained a large and glorious army, a very large and complex bureaucracy, and a splendid court that rivaled Paris and London. However, the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country." Peter I was succeeded by his second wife, Catherine I (1725–1727), who was merely a figurehead for a powerful group of high officials, then by his
Peter III of Russia Charles Frederick, Duke of Holstein-Gottorp (a nephew of Charles XII of Sweden), and Anna Petrovna (a daughter of Emperor Peter I and Empress Catherine I of Russia). His mother died shortly after his birth. In 1739, Peter's father died, and he became Duke of Holstein-Gottorp as Charles Peter Ulrich () at the age of 11. When Elizabeth, his mother's younger sister, became Empress of Russia, she brought Peter from Germany to Russia and proclaimed him her heir presumptive in the autumn of 1742. Previously in 1742, the 14-year-old Peter was proclaimed King of Finland during the Russo-Swedish War (1741–1743), when