Financial Innovation and Russian Government Debt Before 1918

Abstract

In this paper I describe debt instruments issued by the Russian Imperial Government. At the beginning of the 20th century, the Russian government was the largest borrower in the world. Russian government bonds were traded in all major financial centers, including London, Paris, Amsterdam, and New York. Russia was integrated into the world financial system. In 1913 foreign investors held 49.7% of Russian government debt. Innovative financial instruments were developed to attract foreign and domestic investors.