In December, 1937, the Council of People's Commissars ordered a factory to be built in the town of Uglich, 120 kilometers north of Moscow. This factory, named the Second State Precision Jewel Factory (ТТК-2), was constructed between 1938 and 1942. Initially, the factory produced semi-precious and precious stones for the technical industry (such a ruby jewels to be used in watch movements). 

In 1950, the plant was renamed Uglich Watch Factory and began focusing on wristwatch production, first manufacturing Zvezda timepieces, and in 1959, expanding to Volga watches. The Volga brand was named after the Volga River (Река Волга), the longest in Europe; the Uglich Watch Factory was built along this river.

In 1963, after cosmonaut Valentina Tereshkova became the first woman in Space, the Uglich Watch Factory was renamed Chaika Watch Factory ("Chaika" was the callsign that Tereshkova used during her historic flight on board Vostok 6). ​All subsequently produced watches would bear this name, cementing Volga's status as an obscure and short-lived ladies watch marque.

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