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
Grand Duchess Anna Petrovna of Russia Grand Duchess Anna Petrovna of Russia Grand Duchess Anna Petrovna of Russia, Tsesarevna of Russia (Anna Petrovna Romanova) ; 27 January 1708, in Moscow – 4 March 1728, in Kiel) was the elder daughter of Emperor Peter I of Russia and Empress Catherine I of Russia. Her sister, Elizabeth of Russia, ruled as Empress between 1741 and 1762. While a potential heir in the reign of her father and her mother, she never acceded to the throne due to political reasons. However, her son Peter would rule as Emperor in 1762, succeeding Elizabeth. She was the "Duchess of Schleswig-Holstein-Gottorp" by