Saint-Petersburg, political center of Russia, was gradually becoming its biggest city. In 1765 the population of Petersburg was 150,000; by the end of the 18th century it had reached 220,000 and by October, 1917 the city had a population equal to that of Moscow.
New big enterprises appeared: the Berd cast-iron factory, the Potemkin glass factory, and others. The volume of production in the Admiralty shipyards, the "Arsenal", the gunpowder factory, and in state and private manufacturing plants was constantly growing.
Catherine considered herself to be Peter's follower. She paid great attention both to the reconstruction of the whole country and to the development of "Peter's child" - Petersburg. In 1762, immediately upon assuming power, Catherine organized the Commission on Stone Construction. The construction of granite embankments on the Neva, Fontanka, and other rivers and canals began. The pretentious baroque was replaced by austere classicism. Many outstanding architects were working in St. Petersburg - Vallin de la Motte, Felten, Rinaldi - and by the end of the century the city had acquired its unique beautiful image as the "Northern Venice".
In 1769 by the order of Catherine the Great an art collection belonging to the German merchant Gotzkowski was purchased for the Imperial museum. It was this collection of paintings of West European artists that marked the beginning of the world famous museum, the Hermitage.
In 1783 a big stone theater was erected by Antonio Rinaldi on Theater Square (later, after the reconstruction of this building, it housed the Petersburg Conservatory).
Catherine the Great also preserved the memory of Saint-Petersburg's founder. Upon her order the French sculptor Falconet raised the equestrian monument to Peter I - the famous "Bronze Horseman". On August 7, 1782 the monument was solemnly unveiled.
During the short rule of Paul I the architectural image of the capital changed. Classicism was replaced by the solemn and military-oriented Empire style. A new area of the city started developing at the meeting place of the rivers Moika and Fontanka. Paul did not want to live in the Winter Palace which had been the residence of his mother. That is why in 1797 the architect Vincenzo Brenna started the construction of St. Michael's Castle which was to be Paul's official residence. It was completed in 1800.
The name of Paul I was also connected with the new ensembles built on the outskirts of Saint-Petersburg - in Gatchina and Pavlovsk.