Pskov has always played a special role in Russian trade with the West. Archaeological data shows the presence of imported goods in Pskov in the 10th and 11th centuries. This was due to the extensive trade contacts of Russian cities with Scandinavia, which was the source of Russian military elite since the 10th century. Archaeological excavation of Pskov necropolis in 2003 - 2004 revealed a high social status and Scandinavian origin of the buried. Large variety of around 60 found articles, among them Byzantine coins, bronze and copper items, confirms that Pskov was not an economically isolated region and shows extensive military and trade contacts with both the West and the East.
Location of Pskov Republic
Pskov republic started to be recognized as a sovereign state after Treaty of Bolotovo was concluded in 1348, which granted political independence from the Novgorod Republic. This happened just ten years before the establishment of the Hanseatic League - commercial and defensive confederation of merchant guilds and their market towns, which played a major part in Pskov economic development.
Pskov at that was a veche republic, where all free people were considered its citizens with the right to participate in governing of their city-state, which was expressed in veche assemblies and election of local officials. Because many Pskov dwellers were involved in trade and craft, the share of merchants in the ruling class was high. These merchants then took positions of sotskiys (Russian: сотский, initially, an official who represented a hundred households), izborniks (Russian: изборник, elected officials) and posadniks, which allowed them to participate in the diplomatic talks and stimulate better trade conditions.
This sociopolitical system was a premise for establishing tight economic and political relations with the Hanseatic League.
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