In 1867, an agreement was made that would change the face of North America forever. Alaska was sold to the United States by Russia for a paltry $7.2 million less than two cents per acre. Even then, most people in the US ridiculed the purchase as “Seward’s Folly,” thinking that the icy land could provide little. More than 150 years on, the move is still one of the most controversial land deals in history. Why did Russia relinquish such a large and resource-laden tract of land? And does it regret the agreement?
The Deal That Almost Didn’t Happen
The mid-19th century was a time of shifting powers. Russia’s empire stretched across Europe and Asia, but its North American colony Russian America was sparsely populated and difficult to defend. The Crimean War (1853–1856) had drained Russia’s finances and exposed its military weaknesses. Maintaining Alaska, thousands of miles from the Russian heartland, became an expensive burden.
The land generated little income, depending largely on fur trading, which was in recession already. To add to it, Russian authorities were afraid of the increasing power of Britain. If a war erupted once again, they feared Alaska would be captured by British troops in contiguous Canada. Instead of losing the land for nothing, Russia chose to sell it to a friendly nation the United States.
It took two years of protracted talks between Russian Minister Eduard de Stoeckl and US Secretary of State William H. Seward before the transaction was finalized in 1867. It was ratified by the US Senate, and on October 18, 1867, the American flag was hoisted in Sitka in a formal transfer.
Why Sell for So Little?
The $7.2 million price seems appallingly low nowadays, considering Alaska’s immense natural resources. But in 1867, the territory was seen as far-off, inhospitable, and economically unviable. Russia felt it was making a sensible, pragmatic choice converting a liability into cash and solidifying its relationship with the United States.
The US, on the other hand, saw Alaska as an opportunity to expand its territory and influence in the Pacific. Seward envisioned the land as a gateway to trade with Asia, even if the full economic potential wasn’t yet clear. For decades after the purchase, however, Alaska remained largely undeveloped. It wasn’t until the late 19th century, with the discovery of gold, and later oil, that its true value became undeniable.
Does Russia Regret the Sale?
Initially, there was no public furore in Russia against the decision. People perceived it as a natural move considering the priorities and challenges of the empire. However, hindsight is different. Nowadays, Alaska is full of oil, gas, minerals, and fisheries and is of vital strategic significance to the US military.
Contemporary Russian analysts sometimes bemoan the loss, particularly when relations with the West become tense. Though it is doubtful that Russia might have held onto Alaska in the long run especially across the tumult of the 20th century’s world wars there is no doubt about the symbolic loss. It remains a reminder of how rapidly geopolitical mathematics can turn.
On the American side, the acquisition is now regarded as one of the most astute pieces of business in US history. Alaska not only offered untold natural resources but also functioned as a Cold War military stronghold, lying just beyond the Bering Strait from the Soviet Union.
A Lesson in Historical Perspective
The sale of Alaska is an example of how countries make choices based on the circumstances of their time, not based on the benefit of hindsight of future generations. To Russia in 1867, Alaska was a expensive, exposed outpost. To the United States, it was a risk that paid out far beyond any imagination.
Does Russia really regret it now? Maybe on a symbolic or emotional scale, yes. But practically, holding onto Alaska might have been beyond their control in the currents of history. What is for sure is that this 19th-century trade is one of the most intriguing pages in the history of both countries a time when a seemingly minor transaction redrew the map of a continent’s future.
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