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
Tsarevna Catherine Ivanovna of Russia Russia in 1722 with her surviving daughter. The couple never divorced, but they never saw each other again. On the death of Peter II in 1730, the Supreme Privy Council considered Catherine as a candidate for the tsardom as the eldest daughter of Ivan V, but the fear that her spouse would gain influence in Russia and her own independent and capricious nature led to her widowed younger sister Anna, Duchess of Courland, being chosen instead, because she was considered more docile. Catherine was involved in the events of 7 March 1730, when a group of nobles (between 150 and