Frequent raids of Livonia on the land of Šiauliai in the 16th century evidence the existence of good roads. The cooperation of the two lands was first mentioned in the 13th century. It was discovered that in the 9th through the 13th centuries Lithuanians maintained close trade relations with Russia and other neighbouring and more distant countries. Archaeological data show that at that time extensive trading territories were already located in the Lithuanian lands – at the seaside (not far from the present Klaipėda and Palanga), in Šiauliai, Kaunas, Vilnius, and Ukmergė areas. After the Žalgiris (Grunwald) battle in 1410, greater possibilities for barter trade came into view being furthered by the intersections of important roads near Šiauliai, short distances to Livonia and Riga. The road from Königsberg to Riga led through Tilžė, Tauragė, Kražiai, Kurtuvėnai, Šiauliai, Joniškis, and Jelgava. The roads leading from the northern lands inland, towards Vilnius and Kaunas, forked at Radviliškis, Šeduva, Panevėžys, and Kėdainiai. Well-known routes included those to Klaipėda, Žagarė, and Žeimelis. For years and years the convenient position of the town enabled Šiauliai to benefit from the trade with Riga. The population of the land of Šiauliai, which had been awarded the status of a state economy in the 16th-17th centuries, enjoyed more privileges than the people residing in private domains: they were not subject to bondage and therefore produced significant amounts of products and goods, a part of which was sold at the town market. Like the whole northern Lithuania, Šiauliai belonged to the economic rearguard of Riga where goods from the North Lithuania were being exported. Hanza merchants were particularly keen on the linseed from the flax grown in these areas, wool and woollen items, livestock, their hides and fat, and wax. Nearly all the goods were taken to the Western Europe. The deals of Šiauliai citizens with the merchants from Kaunas, a member of the Hanza Union, were mentioned over and over again. From the middle of the 16th century, merchant trips to Riga enjoyed greater popularity than those to the Lithuanian town markets and the historic sources refer to them as regular trips. In the 17th through 18th century the Šiauliai merchants trading in Liepaja, Ventspils, and Jelgava benefited from especially favourable conditions. The barter routes also led to Klaipėda. In the 19th century the trading activities in the Baltic ports were furthered by new roads and the railway. Lithuania borders Latvia in the north, Byelorussia in the east and south-east, Poland in the south-west, whereas the border with the Russian Federation goes along the River Nemunas. After World War II Russia became the south-western neighbour of Lithuania and since then its transit routes have been passing via Lithuania. In the west, a 99km long strip of the Baltic Sea lies between Lithuania and Scandinavia. The history of Lithuania is greatly variable. Of numerous Baltic tribes, only two– Lithuanians and Latvians – have survived. The only Baltic state, the Grand Duchy of Lithuania, was founded in the 13th century and soon it enormously expanded beyond its boundaries. In the Middle Ages this last pagan state played a very important role on the history of the continent by stopping the Teutonic Order invasion into the east and the Mongol Tartar incursion into the west. Following a peaceful incorporation of Slav lands, the Grand Duchy of Lithuania spread to the Black Sea in the south and for several centuries it was famous as one of the largest East European states recognised for its military power. Lithuania remained like that in the times of the Union of Lublin of 1569 when it united with Poland. At the end of the 18th century Lithuania was incorporated into the Russian Empire and soon its name disappeared from the world map. During the world wars Lithuania suffered German and Russian occupation and during the interwar period it lost its historic capital Vilnius. In the 20th century Lithuania declared its independence twice: in 1918 and in 1990. That was a painful period of reappraisal of values.
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