Peter the Great became the new Tsar of Russia in 1682 and ruled until 1725. During his rule, Peter brought many reforms in order to open the window to Europe for Russia. Economic reforms played an important role in the transformation of Russia. With these economic reforms, Russia achieved a good standing among the European countries in areas such as manufacturing, trade, and military. These economic reforms would boost Russia well into the 18th century, which were aimed to provide highly positive benefits for the Russian population.

Russia was the largest state of the Old World at the beginning of the 17th century. With a population of only 13 million people, its territory spanned from the Arctic Ocean to the Caspian Sea. The majority of the population was located in the centre and on the North of the European border. At the end of the 17th century, Russia became a multinational state, due to Ukraine and the whole Siberia becoming a part of its already large area. It was populated by people of many cultures and religions. Orthodox Christians, Muslims, Buddhists and Pagans all lived on the large Asian lands of Russia.

The multicultural presence became noticeable, not only because of Asia but also because of Europe. At that time, Russia was trying to become closer with Europe, but it also had interests in the East. That resulted in the duality of Russian economic and political development. Many western European countries such as the Netherlands, England and France made a significant progress in the area of a market economy. For Russia, it was important to overcome slow social development as compared to Europe. The Russian economy was weak, with poorly developed industry. One of the major weaknesses was the national economy management system.

When speaking about Russia's development, it is important to mention serfdom. Europe was in the process of stopping serfdom, and some countries managed to stop it completely. Serfdom was only growing in Russia. This resulted in Russia falling behind in many areas of social life, creating massive impacts on the population.

Another big factor of Russia's poor economic development was the education system, which was at the very early stages. At schools, only grammar and Holy writings were taught. So there were no specialisations in engineering, manufacturing, medicine, and many other important fields that play a crucial role in countries economic development. It is said that Russia's education system was behind for approximately 5 centuries. It is also important to note that the printed materials were mostly of spiritual content. Due to the poor education system, it was hard to train specialists. For, example there were no Russian doctors in the country. There were only foreign doctors, and they mostly served the members of the royal families.

There was a strong necessity to solve many problems with the economy, army, education, and culture, as Russia has exhausted all of the possibilities to develop separately, outside of the European civilisation. Moreover, in the middle of the 17th century, there were civilian uproars in several major cities such as Moscow and Novgorod. In the years 1670-1671 there was a peasant war, which spread across significant territories in the south of Russia. As a result, the unity of the society was weakened. Russia was in need of radical changes.

In the year 1682, Peter the Great became the new Tsar of Russia. His name is tightly associated with the beginning of the fundamental reforms in the country. For eighteen months Peter the Great traveled throughout Europe with the goal of studying the economic and political structures of the countries he visited. Moreover, Peter the Great personally studied several professions related to the shipbuilding in the Netherlands and England. The knowledge he obtained during those years would later assist him with the upcoming reforms in Russia.

Starting from January 1, 1700, Russia made a switch to a new calendar, which symbolised the beginning of the reforms throughout the whole country.