The history of Sokol began in the late 19th century. It was a workmen's settlement at that time. No account of the city of Sokol would be complete without mentioning the North joint-stock company of pulp and paper industry set up in 1897. Its shareholders - Arkhangelsk industrialist A.B. Surkov and merchant A.P. Belyaev decided to build a factory to produce cellulose and cellulose articles in the Vologda gubernia.
Soon after it topographers explored the banks of the Sukhona river and chose a site near the village of Sokolovo for a number of reasons: forests, green coppices, the expanse of still undeveloped fields and the location was along the lines of what was sought. The Sukhona river flows into Kubenskoye lake, then through numerous sluices and canals it falls into the Sheksna river and the Volga. This used to be the main transportation route to Arkhangelsk.
The first paper-producing machine was launched into operation in 1900. By the year 1920 several paper mills sprouted up in the settlement employing 4000 people in the pulp and paper industry.
In March 1932 the workmen's settlement of Sokol was given the status of a city.
Today Sokol is the third largest city in the Vologda Oblast with a population of 47000 people. The pulp and paper enterprises make up the industrial glory of the Vologda Oblast. Apart from the paper industry, timber and food sectors are also highly-developed.
Sokol companies increasingly manufacture goods, often in partnership with foreign entrepreneurs. Altogether the city runs four enterprises with foreign investments. Finland and Germany rank first among investor-states working on the Sokol market.
Manufacturing is the major employer, producing goods ranging from woodworking articles to milk products, paper goods to furniture.