From the outset, Sweden had gone into the negotiations with very high ambitions, with the hopes of fulfilling the old dream of making all Russian trade pass through Swedish territory. As a consequence of this ambition, the Swedes originally demanded far-reaching territorial gains into western Russia, including the important northern port of Arkhangelsk. At this point, however, James I of England sent a delegation to mediate, and so did the Dutch, mostly to make sure Arkhangelsk did not fall into Swedish hands, which would have made the extensive trade between Western Europe and Russia far more difficult. Arkhangelsk did not change hands in the resulting treaty, partly because of the Dutch and English efforts, but mostly because Russia finally managed to unite under one tsar, Michael Romanov. As word reached Russia that the Swedish war against Poland might soon be over, the Russians were quick to get negotiations going for real — knowing that they could not afford Sweden's renewal of the war effort on just one front.
In the resulting peace treaty, the tsar and the Swedish King Gustavus Adolphus agreed to the following terms:
Gustavus Adolphus is known to have said about this treaty, which granted Sweden natural borders to Russia, partly in the form of Lake Ladoga and Lake Peipus: "jag hoppas att det skall bliva svårt för ryssen att hoppa över den bäcken" — "I hope it will be hard for the Russians to jump across that creek".
England is officially credited with brokering this peace, through their mediator John Mericke, though the Dutch efforts were also of great importance. After the war, the leader of the Dutch delegation, Reinoud van Brederode, was granted the title Baron and given the barony of Wesenberg (Rakvere) in Estonia by Gustavus Adolphus.