The purpose of this paper is to investigate the structural change of foreign markets for Russian iron in 1760-1860 in relation to the British industrial revolution and the formation of capitalistic world. The Russian iron industry based on abundant natural resources and forced labour of serfs rose to its prosperity in the second half of the eighteenth century. Russian iron exports expanded remarkably reaching 3.5 million poods in the 1780s. The largest foreign market was Britain, to which four fifths of the total exports was delivered. No countries other than Sweden and Russia were of any real importance in iron supply to Britain. Simultaneously with the beginning of the industrial revolution in the 1760s Britain increased iron imports conspicuously, which amounted to 160 percent of her domestic output in the 1770s. It should be noted, however, that the increase took place without any real Swedish participation. Russia decisively surpassed Sweden in the share of British iron market and enlarged her iron markets also in other advanced countries of the West toward the close of the century. This situation supremely favourable to Russia underwent a drastic change in the 1810s when British iron industry accomplished fuel conversion from wooden to mineral both in smelting and refining processes and remarkably raised its productive force. Britain competed with Russia successfully not only in domestic market but also in France, Germany, the United States and other countries. Britain, the largest iron-import country in the eighteenth century, now turned into the largest iron-export country. She sent off an enormous amount of her bar iron, pig iron and other iron products and flooded the markets with them throughout the world. Their total amount rose to almost 1.5 million tons in the 1850s, more than the pig-iron output of France and Germany put together. From the turn of the century onwards iron exports of Russia fell into decisive decline. Her iron industry was tremendously stagnant throughout the first half of the nineteenth century. The industrial revolution usually starts in the department of consumer's goods production such as in the textile and more specifically in the cotton industry. Thereby, in the due course of time, induced is the development of the department of producer's goods production such was iron, coal and machinery industries. It was because of this time lag of the latter department that Britain and other advanced countries of the West inevitably resorted to the imports of Russian iron at the first phase of their industrial revolution. It therefore could not be denied that Russian iron industry based on the serfdom had some relation with the origination of the industrial revolution in Britain and the capitalistic world which she induced.