Kievan Rus'
Foundation of the Kievan state

Rurik led the Rus' until his death in about 879 or 882, bequeathing his kingdom to his kinsman, Prince Oleg, as regent for his young son, Igor. According to the Primary Chronicle, in 880–82, Oleg led a military force south along the Dnieper river, capturing Smolensk and Lyubech before reaching Kiev, where he deposed and killed Askold and Dir: "Oleg set himself up as prince in Kiev, and declared that it should be the "mother of Rus' cities". Oleg set about consolidating his power over the surrounding region and the riverways north to Novgorod, imposing tribute on the East Slav tribes.

In 883, he conquered the Drevlians, imposing a fur tribute on them. By 885 he had subjugated the Poliane, Severiane, Vyatichi, and Radimichs, forbidding them to pay further tribute to the Khazars. Oleg continued to develop and expand a network of Rus' forts in Slavic lands, begun by Rurik in the north.

The new Kievan state prospered due to its abundant supply of furs, beeswax, honey and slaves for export, and because it controlled three main trade routes of Eastern Europe. In the north, Novgorod served as a commercial link between the Baltic Sea and the Volga trade route to the lands of the Volga Bulgars, the Khazars, and across the Caspian Sea as far as Baghdad, providing access to markets and products from Central Asia and the Middle East. Trade from the Baltic also moved south on a network of rivers and short portages along the Dnieper known as the " route from the Varangians to the Greeks," continuing to the Black Sea and on to Constantinople.

Kiev was a central outpost along the Dnieper route and a hub with the east–west overland trade route between the Khazars and the Germanic lands of Central Europe. and may have been a staging post for Radhanite Jewish traders between Western Europe, Itil and China. These commercial connections enriched Rus' merchants and princes, funding military forces and the construction of churches, palaces, fortifications, and further towns. Demand for luxury goods fostered production of expensive jewelry and religious wares, allowing their export, and an advanced credit and money-lending system may have also been in place.
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