Azeris. They became the most powerful element in the municipal life of Tbilisi, the city regarded by Georgians as their capital, and in the late 19th century they began to buy up the lands of the Georgian nobility, who had gone into decline after the emancipation of their serfs. Armenian entrepreneurs were quick to exploit the oil boom which began in Transcaucasia in the 1870s, having large investments in the oil-fields in Baku in Azerbaijan and the refineries of Batumi on the Black Sea coast. All this meant that the tensions between Armenians, Georgians and Azeris in Russian Transcaucasia were not simply ethnic or religious in nature but were due to social and economic factors too. Nevertheless, in spite of the popular image of the typical Armenian as a successful businessman, at the end of the 19th century 80 per cent of Russian Armenians were still peasants working the land. Russian rule until 1877 Relations between the Russian authorities and their new Armenian subjects did not begin smoothly. Since Armenia was on Russia's frontline against the rival empires of the Ottomans and Persians, it was initially treated as a military zone. Until 1840, Russian Armenia was a separate administrative unit, the Armenian Oblast, but it was then merged into other Transcaucasian provinces with no regard to its national identity. Things improved when Nerses Ashtaraketsi was recalled from Bessarabia and made Catholicos of the Armenian Church in 1843. Moreover, Mikhail Vorontsov, who ruled Russian Armenia as Viceroy of the Caucasus between 1845 and 1854, was highly sympathetic to the Armenians. As a consequence, by the mid-19th century, most of the Armenian intelligentsia had become highly Russophile. Armenian culture flourished in these years as the new unified province under Russian rule gave Armenians a sense of their shared identity once more. Being part of the Russian Empire also turned Armenia away from the Middle East and towards Europe and modern intellectual currents such as the Enlightenment and Romanticism. A wide array of Armenian newspapers were published and there was a literary revival headed by Mikael Nalbandian, who wanted to modernise the Armenian language, and the poet and novelist Raffi. The pro-Russian outlook of the Armenian intelligentsia continued under Tsar Alexander II, who was widely praised for his reforms. The Russo-Turkish War The Russo-Turkish War of 1877–1878 marked a watershed in the relationship between the Russian authorities and their Armenian subjects. Armenians still