On the Way to Capitalism (1840-1890)
 
Reforms of Alexander II. Assassination of Alexander II. Changes in economics and society.

Had been defeated in the Crimean War the Russian Empire needed a new incitement for further development of the national economy and a series of reforms was undertaken under the control of Alexander II. The Russian serfs were freed in 1861 and that's why he was called Liberator, although peasants had to pay for their land. A military reform was carried out soon and canceled the lifelong military service (25 years), followed by a legal reform (trial by jury was introduced) and the city administration reform, which allowed St.Petersburg a higher degree of self-government.

Despite these reforms, some revolutionaries considered Alexander II to be too conservative monarch. After a series of assassination attempts Alexander II was fatally wounded on March 1, 1881 and died on the same day. The marvellous Church of Our Savior on the Spilled Blood (1883-1907) was built on the spot where he had been assassinated. Most of the reforms and the constitution which was ready to be signed were repealed or curtailed by his son Alexander III.

Meanwhile, St. Petersburg was becoming a large capitalist city. The number of factories and plants grew quickly, while Nevsky Prospect and downtown streets were filled with banks and company offices.

The construction of new multi-storied  apartment buildings were mushrooming all over the city. During this period the palaces for Grand Dukes (members of the Imperial family), the famous Mariinsky Theatre, the Liteiny bridge were built, the first street lights in the city were installed and monuments to Catherine the Great, Nicholas I and the poet Alexander Pushkin created.