Baku saw a large influx of Armenians following the city's incorporation into the Russian Empire in 1806. Many took up jobs as merchants, industrial managers and government administrators. Armenians established a community in the city with churches, schools, and was the scene of a lively literary culture. The favorable economic conditions provided by the Imperial Russian government allowed for many Armenians to enter the burgeoning oil production and drilling business of Baku. Armenians along with Russians constituted the financial elite of the city and local capital was concentrated mainly in their hands. The Armenians were the second most numerous group in the judiciary. By 1900, Armenian-owned businesses formed nearly one third of the oil companies operating in the region. The growing tension between Armenians and Azeris (often instigated by the Russian officials who feared nationalist movements among their ethnically non-Russian subjects) resulted in mutual pogroms in 1905–1906, planting the seed of distrusts between these two groups in the city and elsewhere in the region for decades to come.