Kankrin Reform

a currency reform carried out in Russia from 1839 to 1843. It is named for E. F. Kankrin, the minister of finance who conceived and implemented it.

Before the Kankrin reform Russia used paper money. Military expenditures, in particular during the wars with Napoleon, were financed with paper money. As a result the value of the assignaty dropped sharply. The need to strengthen state credit and to normalize economic life forced the government to undertake the reform. In 1839 the currency was based on the silver ruble and a mandatory exchange rate for the assignaty was established: 3 rubles 50 kopeks of assignaty were set equal to one silver ruble. In 1843 the assignaty were gradually withdrawn from circulation and exchanged for treasury notes (kreditnye bilety) according to a mandatory rate; the treasury notes were freely exchanged for silver. The Kankrin reform temporarily strengthened Russia’s finances but was aimed at preserving serfdom.