On 3 April 1918, representatives of several soviets in the governorate held a meeting in Tyumen. Declaring itself a provincial conference, the meeting decided to transfer the provincial administrative centre from Tobolsk to Tyumen and established the Provincial Executive Committee of the Soviets. N. M. Nemtsov, one of the leaders of the Tyumen Bolsheviks, became its chairman.
At the same time, the nationalisation of industrial enterprises, shops and banks began. This dealt a final blow to industry, trade and finance. In May 1918 alone, kerosene prices in Tyumen rose by 50%, meat prices by 33%, soap prices by 20% and salt prices by 14%, among other increases. In a telegram to G. I. Petrovsky, the People’s Commissar for Internal Affairs, the chairman of the Provincial Executive Committee, N. M. Nemtsov, stated: "Two months after taking power, we are approaching bankruptcy."