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An 18th-century business case study on flexibility:

when plan A is impossible, send the customer eight tonnes of butter

In the summer of 1742, an international business scandal nearly broke out in Istanbul. Dutch merchants began searching for their trading partner Gerasim Maksimovich from Poltava through diplomatic channels. They were concerned about the fate of the goods they had given him to sell two years earlier. But they did not know that a ship with the long-awaited goods from the Hetmanate was already sailing towards them across the Black Sea. This is a story about two entrepreneurial brothers who were able to profit even from unexpected imprisonment and found a way to fulfil their contract with foreigners, despite the obstacles posed by the same evil that modern Ukrainians are fighting in the east.

Here is the second text of the LIGA.net project "BUSINESS OF FORGOTTEN ANCESTORS" — a series of stories about Ukrainian entrepreneurship during the Cossack era. Based on the lives of real people and details preserved in documents, we show what the Ukrainian economic elite of that time WAS and how it LIVED.

The heroes of this text are two brothers, the Maksymovychs, who lived in Poltava in the 18th century. They traded in the Hetmanate and undertook more risky export projects: they sold livestock to Germany and travelled to the Crimean Khanate to sell furs. Venturing beyond the business landscape at that time was very dangerous, and every trip was a temptation of fate. One such trading trip to Crimea suddenly ended with what our business story begins with.

Spoiler alert:

this business case has a happy ending: both brothers joined the elite of society — one became a representative of the Cossack leadership, the other received a title of nobility.

The images are illustrative and are not historically accurate

Force majeure

and an unexpected chance

The story begins in Crimea in the summer of 1735. At that time, one of the brothers, Gerasim, while completing another export deal, unexpectedly ended up in prison in Kafa (now Feodosia). It is not difficult to imagine what happened to the captive's goods.

The arrest occurred because of the outbreak of war between the Russian Empire and the Ottoman Empire. At that time, the Crimean Khanate was a vassal of the Ottomans. Nine merchants from Poltava (among whom was Gerasim Maksymovych), who had brought furs to Kafa, were unlucky. All Ukrainian merchants, along with their servants and assistants, were detained by the Crimeans. In fact, they were taken hostage. They were later taken to Istanbul, to the most famous Turkish prison of the time — Yedikule, or the Castle of Seven Towers. It was there that Yuriy Khmelnytsky (Bogdan's son) was once imprisoned.

The Poltava entrepreneurs were stuck behind bars for four years. It was only in 1739, after a peace treaty, that the hostages were released. Not everyone survived captivity; two (one of the merchants and a servant) died. Gerasim Maksymovych was lucky — he remained alive. Moreover, the merchant did not lose his business acumen. Finding himself in one of the main business centres of the world at that time, Gerasim took full advantage of the situation.

What goods were traded between Crimea and the Hetmanate

Istanbul at that time was a giant business hub, the main crossroads of trade routes between the East and the West. It was the end point of the Great Silk Road, so numerous European companies, including Dutch ones, had trading posts there. It was with representatives of the latter that Gerasim Maksymovych became acquainted after his release. The Dutch were looking for an energetic and reliable partner who would establish direct trade with the Hetmanate.

Gerasim made a good impression. He had not lost his confidence and quick wit, despite four years in prison and empty pockets (even today, it is difficult to imagine that after being transferred between the prisons of two countries, a released entrepreneur would have his money and property returned to him years later).

The Poltava merchant signed a written agreement with the foreigners. According to the contract, the Dutch provided Gerasim Maksymovych with goods, which he had to sell in the Hetmanate. Gerasim was to fulfil his obligations with counter-deliveries of Ukrainian goods. The money to purchase them was to come from the sale of goods provided by the Dutch.

Here is a list of goods

that the Dutch partners were expecting:
cow butter
kaviar (the name for caviar)
lard
lye (fat from sheep, goats, cows) and tallow candles
fur
cow hides
wax

But even before the war, the Russian Empire had blocked the export of some of these goods from the Hetmanate to Crimea and the Ottomans. Perhaps Gerasim, who knew the ins and outs of trade, did not inform his partners about the problem, hoping to find workarounds. Or he simply forgot about the obstacles.

Returning

not empty-handed

Across the sea and the Wild Field, Gerasim Maksymovych finally returned to Poltava, where his brother Semen was waiting for him. They came from a local merchant family, and their father had been involved in trade since at least 1714. From childhood, Gerasim and Semen had seen their father buying and selling, and knew the routes, goods and prices. It is not surprising that both continued the merchant dynasty.

After four years of Ottoman captivity, Gerasim signed a contract in Istanbul, then abandoned trade in favor of a career in public service and nobility

took it upon himself to fulfill the agreement his brother had signed; he bought one of the most luxurious estates in the center of Poltava and sent back to Istanbul a shipment of butter worth several such estates

But after returning from prison in Istanbul, Gerasim decided to change his occupation. He took a job as a civil servant, which opened the way to higher social status among the nobility. Although the Maksymovych merchants were rich and influential, they formally belonged to the townspeople . Therefore, unlike the privileged classes — the nobility and Cossacks — they had no privileges and paid all taxes.

But while Gerasim was starting a new career, someone had to fulfil the contract with the Dutch. His brother Semen helped him. We do not know exactly what goods the Poltava merchant received from foreign merchants. Most likely, it was fabric — a valuable and sought-after commodity with no expiry date. So Semen took his time, selling everything at the main fairs of the Hetmanate, trying to get the most out of it.

In the spring of 1741, Gerasim Maksymovych sent a letter to the Dutch in Istanbul. It stated that part of the goods had been sold. This was the first and last letter from the Poltava brothers during the entire agreement.

Plan B

and contract fulfilment

A year later, the Dutch lost their patience. They began to search for their Poltava partners through diplomatic channels. But it is known that it was in 1742 that Semen Maksymovych intensified his efforts to fulfil the contract. In May of that year, he sent a shipment to the port of Kezlev (Yevpatoria), accompanied by a merchant partner.

However, it was objectively difficult to close the deal. Russia systematically suppressed the Hetmanate's foreign trade, creating better conditions for the movement of its own goods through the northern imperial ports. The first bans on exports from Ukraine were introduced as early as 1714. Over the next few decades, the list was expanded, and outposts and customs offices were built at the borders. In this way, the direct trade links between the Ukrainian elite and their international partners were deliberately destroyed.

Semen found a solution. He purchased only those goods that could be transported through Crimea without hindrance, namely cow and sheep butter and fur. This was a successful option, as there was stable demand for these goods.

The Belgorod merchants from whom Maksymovych initially ordered butter let him down. Therefore, he had to urgently look for other suppliers. These included, for example, the estates of Cossack leaders, where they kept large herds of cattle, necessary for the production of large batches of butter.

Semen Maksymovych spent money on purchasing barrels and other packaging for goods, paying customs duties at the border, and paying for transportation by ship across the Black Sea. A register of expenses in talers , has been preserved, so we provide the estimate. At that time, one taler was approximately equal to 60 kopecks. To give you an idea: one ruble could buy two sheep.

Cost accounting

in talers and sheep
Over 8 tonnes of cow and sheep butter 1129 thalers Cost of 1355 sheep
Fox fur 263 talers 316 sheep
Packaging, customs duties and
transport fees 288 thalers 346 sheep
Total 1680 thalers 2016 sheep

Interestingly, export logistics costs here account for approximately 20% of the cost of goods. This figure is quite acceptable even today.

n total, the Dutch received more than eight tonnes of butter — a large-scale export operation for that time. Its weight was estimated in the register using the Turkish measure "oko" (approximately 1.28 kg). Semen Maksymovych exported 5,200 ok of cow's butter and 1,708 ok of a mixture of sheep's and cow's butter. There was a lot of hassle with the butter: it was well salted, poured with brine and placed in large barrels with a capacity of about 500 litres each. To prevent the goods from spoiling on the way, the barrels were hermetically sealed.

Why else was salt a strategic commodity?

Consequences

for Poltava merchants

The contract was successfully fulfilled despite the difficult conditions of imperial trade restrictions. Instead of a long list of goods, the Dutch received eight tonnes of high-quality butter and valuable fox fur — goods that were in demand on the Ottoman markets. The financial outcome of the deal for the Dutch is unknown. However, Ukrainian merchants demonstrated ingenuity and flexibility in the face of severe restrictions.

After the export saga, the Maksymovych brothers' business took off. In 1741, when a significant portion of Dutch goods should have already been sold, Semen made a serious investment in real estate. Perhaps it was a coincidence, but it can be assumed that this is how he disposed of part of his profits.

Maksymovych bought a luxurious estate in the centre of Poltava — on Starorynkova Street, next to the Assumption Cathedral, the main church of the city. The courtyard had five rooms for the owners, one for the servants, three storerooms, a stable, and a barn. Semen kept eight hired hands here to work on the farm.

The estate had previously belonged to one of the city's leading figures, the archpriest of the Assumption Cathedral, who had been dead for many years at the time of the sale. Semen purchased the property after the abbot's widow entered a convent, following her son Peter's monastic tonsure. He later became famous as Paisius Velichkovsky and was canonised as a saint in 1988.

The cost of the estate was 200 tsarist rubles. For that amount, one could buy a whole herd of oxen. To put this into perspective, ten years later, in 1751, Ivan Kotlyarevsky, author of "Eneida", would buy a farmstead in Poltava. He would pay only 27.5 roubles for a decent house with land.

Who became merchants in the Hetmanate

Seventeen years later, in 1758, Semen became a Cossack — he received the rank of ensign and moved from the townspeople to the Cossack elite. Thanks to his rise in status , Semen was exempted from some taxes, gained the right to buy land and have dependent peasants, and to distil and sell vodka. Taking advantage of this, in 1760, Semen founded another farmstead seven or eight versts from the city, in addition to his farmstead ten versts from Poltava.

Gerasim successfully developed his career as an official. In 1767, he rose to the rank of hereditary nobility. In the same year, Gerasim bought one of the farms near the city from his brother. The document of transfer of ownership, which has been preserved in the archives, was signed by both Maksymovychs.

Signature of Gerasim

Signature of Semen

After becoming a Cossack, Semen did not abandon trade. He dealt with large sums of money and influential merchants. One of his partners, for example, was a member of the city government who sold cattle in Silesia and brought cloth from there. In a document that has been preserved, he stated that he "trades for money in the amount of up to a thousand rubles for his retired military comrade Semen Maksymenko ". It should be noted that four rubles could buy an ox.

Sources are silent about Gerasim's personal life, but it is known that Semen had a wife and children. At least one of his sons continued his father's business — they are mentioned together in the list of Poltava merchants from 1767: "Semen Maksymovych with his son Petro." This is the last mention of the heroes of this text preserved in the archives.

This story has been preserved thanks to a complaint. The Central State Historical Archive in Kyiv, in the fund of the Kyiv Provincial Chancellery, preserves a case from 1742 concerning the search by the authorities for the Poltava merchant Gerasim Maksymovych. The complaint was filed by Andriy Magrin, Dutch translator from Istanbul.

Author of the article
Vadym Nazarenko
historian, candidate of historical sciences; head of the Carpathians department at the National Museum of Folk Architecture and Life of Ukraine (Kyiv, Pyrohiv): specialist in 18th-century Ukrainian life