The landowning aristocracy of the Russian Empire and the economic use of private subsoil rights during the period of “industrialism” of 1890–1914

Abstract

Based on the study of archival materials (primarily from the funds of the Yusupov princes), the article considers the issue of the realization by the largest landowners of the Russian Empire in 1890–1914 of their right to the subsoil in order to increase the profitability of their estates. As it turns out, that economic strategy was characteristic not only of a small group of Ural owners, but also for many other titled aristocrats whose possessions were located in the central provinces and especially in the regions of Southern Russia (Donbass and the Caucasus), where huge reserves of mineral raw materials were discovered. The analysis of the relevant sources shows what significant opportunities for increasing revenue were provided by coal and oil deposits, and primarily, by the initiative and economic pragmatism of private landowners in organizing extractive production. As a rule, most aristocrats managed to increase their cash receipts immediately due to minimal organizational efforts. But in the future, with the expansion and complication of extractive production, landowners faced a lack of available funds. The way out of that was seen in selling their lands or in the corporatization of the enterprise, which guaranteed the aristocrats a certain dividend from profits, but transferred most of the capital and income of the estate into the hands of industrial or banking companies. In any case, the entry of the Russian economy in 1890-1914 in the “industrial” period turned out to be extremely profitable for the largest landowners, not only for purposes of developing their agricultural estates, but also in terms of the diversification of their economy, including through the active exploitation of mineral resources.