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
Catherine I of Russia her undergarments to Brigadier General Rudolph Felix Bauer, later the Governor of Estonia, to be his mistress. She may have worked in the household of his superior, Sheremetev. It is not known whether she was his mistress, or household maid. She travelled back to the Russian court with Sheremetev's army. Afterwards she became part of the household of Prince Alexander Menshikov, who was the best friend of Peter the Great of Russia. Anecdotal sources suggest that she was purchased by him. Whether the two of them were lovers is disputed, as Menshikov was already engaged to Darya Arsenyeva, his future