The founding of Riga in 1201 was a key moment in the Northern Crusades, driven by Bishop Albert of Riga to establish German dominance in the Baltic region. Albert arrived in Livonia in 1200 with 23 ships and 500 Westphalian crusaders, determined to convert the local tribes and secure trade routes. He quickly relocated the bishopric from Ikšķile to Riga, forcing the local elders to accept the move.
Albert ensured Riga’s commercial success by obtaining papal decrees that required all German merchants trading in the Baltic to pass through Riga. This strategic control over trade helped the city grow rapidly. In 1211, Riga minted its first coins, signaling its emergence as an economic hub, and Albert laid the cornerstone for Riga Cathedral (Dom), further solidifying the city’s religious and political importance.
Though the region remained unstable, with local tribes attempting but failing to reclaim Riga, Albert’s campaigns against Polotsk in 1212 secured German dominance along the Daugava River. Polotsk ceded control over Koknese and Jersika, ending their influence over the Livonian tribes and ensuring Riga’s authority in the region. Today, Riga's founding in 1201 is commemorated as a pivotal moment, shaped by later German narratives portraying Albert as a "bringer of culture" who introduced Christianity and civilization to pagan Livonia.