After the fortification of the Peter and Paul Fortress was built in 1703, one more defense center was created in the mouth of the Neva. For this purpose the building of shipyard which had been already started being constructed – “The Admiralty yard” was used. In this Admiralty shipyard the war ships were produced, the Russian military fleet was created here. The old Admiralty yard, as well as the modern building, was built in the form of the letter "П" opened towards the Neva.
In November, 1705 the construction of the earth fortress came to an end. The use of the Admiralty as fortress played an important role in the subsequent building of the downtown. By rules of military and engineering science during that time the extensive territory round fortress couldn't be built up so that the enemy couldn't come nearer in disguise of constructions to fortifications. Therefore at the territory of the building adjoining the Admiralty vacant spaces on which later were created Palace Square, Senate Square and Admiralteyskaya Square weren't built.