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
Nicholas I of Russia another meeting with Ficquelmont in 1833, Nicholas, speaking with the "Greek Project" of Catherine the Great in mind said: "I know everything that has been said of the projects of the Empress Catherine, and Russia has renounced the goal she had set out. I wish to maintain the Turkish empire... It if falls, I do not desire its debris. I need nothing." Ultimately, Nicholas's policies in the Near East proved to be both costly and largely futile. In 1826–28, Nicholas fought the Russo-Persian War (1826–28), which ended with Persia forced to cede its last remaining territories in the Caucasus. Russia