From the 16th Century on Russia (Muscovy) emerged as a power at Europe's Eastern periphery and began to expand into Asia becoming the greatest empire the world has ever seen. In the eighteenth century Russia covered almost one sixth of the globe. This and its relationship with Europe was crucial for the paths of Russia's development. Europe was example, and opponent, a source of inspiration, knowledge, and progress, but also a challenge to Russia's order and culture. The question whether Russia is part of Europe or not, or something in between Europe and Asia is debated until today. One of the central questions that shall be discussed in the lecture is whether Russia's special path of development is not so much due to primordial otherness of culture, religion, and traditions, but to the permanent need to compete with superior Western powers throughout its history; whether it was paradoxically precisely the encounter with Europe that produced and reinforced Russia's otherness and alleged backwardness.