nd became the first museum of Vologda.
However, after St. Petersburg was founded and foreign trade was rerouted to the Baltic Sea, the importance of Vologda as a center of foreign trade decayed. In 1722, Peter issued the decree restricting trade through Arkhangelsk, which damaged Vologda even further. In the course of the administrative reform carried out in 1708, Vologda lost its functions as an administrative center and was included as a town of Archangelgorod Governorate.
The revival began only during the reign of Catherine the Great who in 1780 made Vologda the center of Vologda Viceroyalty, a successor of Archangelgorod Governorate. In 1796, the viceroyalty, administered by a governor-general, was transformed into Vologda Governorate, the borders of which stretched up to the Ural mountains in the east. The center of Vologda was rebuilt according to the plan of a provincial city issued in 1781. The street network is still in use now.
A new economic lifting of the city was connected with a steamship movement across the Sukhona River and with the building of a new railroad line connecting Vologda with Yaroslavl and Moscow (1872), with Arkhangelsk (1898), with St. Petersburg and Vyatka (1905).
In 1871, the Danish merchant Friedrich Buman opened a specialized butter factory in the manor of Fominskoye, 13 kilometers (8.1 mi) from Vologda. It was the first butter factory both in Vologda Governorate and in Russia. Since then Vologda became the center of the butter industry, and the Vologda butter, a special type of butter with the taste of nuts invented by Nikolay Vereschagin and Buman, became a world trademark. In 1911, the manor of Fominskoye together with the Buman's creamery was given to the state and became the base for the Vologda dairy institute. Thereby Vologda turned to one of the largest dairy centers of Russia.
Since the 15th century, Vologda was a political exile destination and was even known as "Siberia close to the
