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In 1909 Nicholas and his wife travelled to Italy, where they were captivated by Renaissance palaces shown to them by Victor Emmanuel III. Upon their return, they engaged Nikolay Krasnov, Yalta's most fashionable architect,

A significant historic event of the Second World War period is connected with the Palace. The Crimean (Yalta) Conference of the Heads of the three allied powers of the anti-Hitler coalition, the USSR, the USA and Great Britain was held in the palace from February 4 till February 11, 1945.