Almost 150 years ago, the territory of modern Kaluga, Oryol, and Smolensk regions housed the Maltsev Industrial District, which could be called a state within a state. This industrial area supplied the country with freight cars, locomotives, rails, building materials, grain, furniture, and timber. It had its own shipping system, hospitals, schools, and shelters, even its own police, and in local stores, workers used "Maltsev" banknotes. How did this merchant republic come about?

Its founder was entrepreneur Sergey Maltsev. For a long time, he served as an adjutant to Prince Oldenburg, traveled extensively in England and Germany, showing interest in railroads, and shared his observations with Nicholas I. At one point, Maltsev even suggested to the emperor to build a railway branch to India, but the conversation went no further. In 1853, inheriting a significant fortune from his father, Sergey Ivanovich decided to dedicate himself to the railway business.

Investing 2 million rubles in the construction of factories, he began to actively develop the neighboring territories. New factories were built, and the length of the railway tracks significantly increased. Later, Maltsev's factories began producing locomotives and cars, although, according to contemporaries, the comfort in the cars left much to be desired. The "platzkart" was lit by a weak bulb, and the benches were covered with coarse overcoat cloth. Subsequently, the factories started producing spring steel, which had not been manufactured in Russia before. For this, Sergey Ivanovich purchased Siemens furnaces in Europe.

He also invested in the technical equipment of his "merchant republic." All factories and offices were connected by telegraph, and later by telephone. Maltsev created a powerful industrial potential for the region. His railway operated until the 1970s, after which it became unnecessary and the branch was dismantled.