YAROSLAVL was founded by Yaroslav the Wise, c.1000 AD and named after him. The city's fortunes came largely from its position on the river Volga which allowed trade to be brought from and to Moscow via the river, linking the new Russian capital with the port of Archangelsk. Resultantly Yaroslavl became an important place for the conduct of international trade and a number of shipping berths and warehouses grew up around the city for the use of merchants, especially those from England and Germany.  The city benefited greatly from its geographical location over the years and the wealth which business produced for the town helped ensure its prosperous future. In fact, in the 17th century a number of early industrial concerns were set up in the city, including a number of leather-working shops, and Yaroslavl became a center over the years for the production of textiles, cosmetics (fragrances) and silver work.

All of the best high quality flax from the Veliko Village region in Yaroslavl Province. (BEЛИKOCEЛCKOИ) was kept within Russia for the production of Yaroslavl Linen. At the beginning of the 18th century Yaroslavl finally began to transform itself from a trading post into a major industrial town; this largely came about because with the foundation by Peter the Great of Saint Petersburg in 1703, the importance of Arkhangelsk as a port on the White Sea was drastically decreased, and the amount of trade being channelled through the city for export fell accordingly, however, the wealth which Yaroslavl had amassed over its many years as an important trading post allowed it to invest great amounts of money into the development of the city's new industrial base, and thus make the city very attractive to new investors. In 1772 the linen textile factory of Dutch merchant Ivan Tames opened on the right bank of the Kotorosl. This plant was not only Yaroslavl's first major industrial enterprise, but also one of Russia's largest textiles producers. Amazingly this famous establishment still exists today under the name 'Textile factory 'Krasny Perekop' (russ. Красный Перекоп).