On September 10, 1721, Sweden and Russia signed the Treaty of Nystad, ending the Great Northern War. For Sweden, it meant the loss of its great power status, while for Russia, it marked its entry into the circle of the world's strongest states.
In this long and bloody war, the mighty Swedish kingdom faced a coalition of Russia, Denmark, the Polish-Lithuanian Commonwealth, and Saxony. The allies aimed to strip Stockholm of its possessions in the Baltics and northern Germany.
Only Russia bore the brunt of the conflict from the first day to the last. Peter I mobilized all of the state's resources, creating a navy and an entirely new army.
By 1703, the Russians had occupied almost all of Swedish Ingria, where they founded the future capital of the state—Saint Petersburg. In 1708, they defeated the Swedes at Lesnaya, and the following year they crushed Charles XII's army at Poltava.
After losing all of the Baltics and part of Finland, Stockholm entered peace negotiations. The Swedish kingdom ceded to Russia "complete, unquestioned, and eternal ownership" of Ingria, Livonia (central and northern Latvia), Estonia, and the southeastern part of Finland.
On November 2, 1721, at the Church of the Holy Trinity in Saint Petersburg, Peter I accepted the title "Father of the Fatherland, Peter the Great, Emperor of All Russia." Russia was officially proclaimed an empire, though Europe had already referred to it as such since the victory at Poltava.