 Peter the Great, recognizing the political and economical importance of the peninsula, promoted its industries and commerce; however, the region fell into neglect after St. Petersburg was founded in 1703 and most of the shipping trade shifted there. In 1732, large deposits of silver in native form were discovered on Medvezhy Island in the Kandalaksha Gulf and copper, silver, and gold deposits were found in the lower reaches of the Ponoy River. However, despite the efforts ongoing for the next two centuries, there was no commercial success. At the end of the 18th century, the local population learned the practice of peat production from the Norwegians and started using peat for heating. Timber cutting industry developed in the region at the end of the 19th century; mostly in Kovda and Umba.
