Two years passed without a favorable response to their request, so on August 9, 1846 they sent a new petition to Count Mikhail Vorontsov, viceroy of the Caucasus: “Most Excellent Prince! In industrial matters, wide distribution and especially activity involving the manufacture of our own domestic products is a national treasure, which is the strength of the state, and examples convince us that in all actions, of whatever type they might be, incentives or rewards double the strength and spirit to overcome great new obstacles, and incentives revive tired labor.... We, the Dubinin family, have been producing oil for more than 20 years amid incessant danger from enemy attacks by mountain peoples, and have made continuous efforts to please the government.”
The viceroy of the Caucasus awarded the head of the family, Vasily Dubinin, the medal “For usefulness” on a Vladimirov ribbon, but the brothers still did not receive financial support from the authorities. Shortly thereafter, a raid on Akki-Yurt by a detachment of mountain dwellers from the formations of Imam Shamil put a definitive end to the more than 20-year history of the Dubinin brothers’ quitrent enterprise.
In their appeals to the authorities, the Dubinin family emphasized that: “We have discovered by our efforts a method of refining petroleum of natural black color into white. Before us, no one here knew such a method of refining, and we did not keep it secret for only our own benefit, but to promote the common good we quickly disclosed it to all inhabitants of the city of Mozdok, which is not far from where the sources are located, and selflessly taught it to other manufacturers.”
Despite the end of the Dubinin brothers’ enterprise, their example really did spread in the North Caucasus. The historical literature lists the names of entrepreneurs who followed their methods: N. Avdyunin, V. Shvetsov, and the merchant Sukhorukov, among others.
At the beginning of the 1830s, researcher Rikhard German (1805— 1879), traveling all over the Caucasus to study the properties of mineral sources, wrote in his work “The Large Asphalt Stratum in Minor Chechnya” that “10 versts [6.6 miles] from the fortress rises a group of hills consisting of marl. In the basin located among these hills there is an oil source: this is a pit, faced on the inside with a wooden framework and filled with water; it contains parts of iron (II) sulfate and thick oil floats on top of this water; this liquid continually releases hydrocarbon gas. This source gives 20 buckets of oil per day, from which pure mineral oil is prepared in a building built close to the source. The asphalt remaining from distillation is used on site in place of fuel for the distillation apparatus.”
It is possible that this refining company belonged to the partnership of Nikolay Avdyunin, a third guild merchant from Mozdok, who concluded a three-year tax-farming arrangement in 1833 on hand-dug oil wells close to the Grozny fortress. This company subsequently fell into other hands. Vasily Shvetsov, the new tax farmer, wrote the following in his petition: “General demand and high prices have made many, including Mozdok merchant Avdyukin, the former tax farmer, with his company, study the production of petroleum according to the method indicated by the Dubinins. When the sources came under my administration, I also paid attention to this branch of industry, acquired by the same method up to 1,000 poods [120 barrels] of ‘white’ oil and, in the hope of deriving significant benefits, sent the entire prepared quantity to Moscow in 1837, but found the prices of it were already from 24 to 27 rubles in banknotes.”
Russia’s First Asphalt Plant
Another region that provided a certain impetus to the development of the oil business in post-reform Russia was the Crimean Peninsula.
At the end of the 17th century, the Russian government, striving to ensure the safety of the southern areas and gain a window onto the Black Sea, began a struggle to take control of this strategic region. During the Russo-Turkish War of 1768–1774, Russian forces took control of the Crimea and under an agreement with Khan Sahib Giray (1772) and the Treaty of Kuchuk Kaynarca (1774), the Crimean Khanate was declared independent of Turkey and came under the protection of the Russian Empire.
In 1783 the Crimea was annexed to Russia and in 1797–1802 the territory of the peninsula became part of the Novorossiya Province. On October 8, 1802, Alexander I issued a decree dividing the Novorossiya Province into three Russian provinces: Nikolayev, Yekaterinoslav, and Tavrich. According to this decree, “Tavrich Province consists of seven districts, comprising: Simferopol, or Ak-Mechet, Perekop, the former Phanagoria, renamed Tmutarakan, which is the name that the island of Taman bore in Old Russia, and with the addition to the district of seven lands of the Black Sea force, Feodosiya (Kefiya) and Yevpatoriya (Kozlov), and finally, beyond Perekop, Dnepr and Melitopol Provinces. Simferopol is assigned the capital of this province.”
The first geologic studies of the Crimean Peninsula territory were carried out in 1823 by the Russian surveyor Kozin. Among other things, he named and marked the basic sites of surface oil shows on the peninsula.
It is noteworthy that this is also exactly the same place where the first successful attempt was made in 1838 to set up domestic asphalt production in Russia. It was due to three persons: Mikhail Vorontsov, governor general of Novorossiya; Zakhar Kherkheulidze, town governor of Kerch; and Karl Byurno, colonel of engineers.
In 1823, Count Mikhail Vorontsov (1782–1856) was appointed governor general of Novorossiya and plenipotentiary viceroy of Bessarabia. His efforts to develop industry and agriculture and improve the cities of the region were highly valued by his contemporaries. Suffice to say that before his arrival in Odessa, the city had no paved roadways or sidewalks. His name is also associated with the establishment of domestic steam navigation on the Black Sea and the first experiments with municipal street lighting using illuminating gas.
Zakhar Kherkheulidze (1798–1856), town governor of Kerch, was also an extremely noteworthy person. On January 14, 1833, at the suggestion of Governor General Vorontsov, he was appointed town governor of Kerch and Yeni-Kale, and served as the head of the city for a full 17 years. This period became a sort of “Age of Kherkheulidze.” In 1830–1840, a general plan for the construction of Kerch was completed, and the town governor was responsible for realizing the brilliant ideas of municipal architect Aleksandr Digbi, who built a whole series of marvelous buildings. During this period, the city center acquired its definitive form, the architectural highlight of which was Mount Mithridat. Many blocks of the city were also built, as well as a series of municipal squares. In addition, the Melek-Chesme River was straightened by a canal and the embankment was lined with stone; the slope of Mithridat had trees planted on it, forming a beautiful boulevard; the water supply system was improved, and new fountains were built. A series of industrial companies were also founded in the city. Based on his enthusiasm for improving the region’s infrastructure, it is not surprising that Kherkheulidze gave his full support to Colonel Byurno’s proposal to improve the city’s streets and build the country’s first asphalt plant.
A Frenchman by nationality, Karl Byurno (1796–1858) joined the Russian army in 1820 in the rank of second lieutenant of engineering forces. Over nine years of service, he was promoted to the rank of colonel of engineers, took part in the Russo-Turkish War of 1828–1829, and was awarded several medals. Starting in 1835, construction on the Black Sea coastline fortifications in the Caucasus began based on his plans. While this work was being done, he visited the Kerch Peninsula, where he was able to tour regions with surface oil shows and natural asphalt.