The Strategic Sale of Alaska: Why Russia Sold and How Much Did They Get?
One of the most fascinating chapters in Alaska history is the sale of Alaska from Russia to the United States in 1867. This monumental real estate deal, which saw the sale of Alaska for $7.2 million, was more than just a simple transaction; it was a strategic move that addressed numerous geopolitical challenges faced by the Russian Empire.
Reasons for the Sale
Financial Strain: The Russian Empire was facing significant financial difficulties after suffering a devastating defeat in the Crimean War (1853-1856), which included setbacks against the Ottoman Empire, Britain, and France. To alleviate these financial pressures, the Czars decided to sell Alaska, a territory that was of relatively little interest to them.
Defense Challenges: Alaska, being vast and remote, posed a considerable logistical and economic burden for the Russian military. The Czars recognized that defending Alaska would be nearly impossible without substantial resources and manpower, which they could not afford. This made the territory a liability rather than an asset.
Declining Fur Trade: Historically, the fur trade was the primary economic driver in Alaska. However, the decline in the fur trade reduced the economic importance of the region, further justifying its sale. The Russian leadership saw little potential for reviving the fur trade or making Alaska economically viable without significant investment.
Fear of British Expansion: The Russian Czars were also wary of the growing British influence, particularly after the British had humiliated Russia in the Crimean War. They recognized that Britain could potentially take control of Alaska and join it to Canada, thus effectively expanding Britain's reach at their expense. By selling Alaska to the United States, the Czars aimed to prevent this from happening and secure an ally instead of a rival.
Why the United States?
Strategic Alliances: The sale of Alaska to the United States was a strategic move to strengthen ties with a rising global power. At the time, the United States was a rapidly expanding nation with a keen interest in territorial expansion. By making an offer of $7.2 million, the United States could purchase Alaska, thereby shifting the burden of defending the territory from Russia to the new American administration.
Future Prospects: The Russian Czars likely viewed the United States as a potential ally in East Asia, where Russia had significant territorial ambitions. Thus, the sale of Alaska was seen as a way to secure support and ensure that a friendly, powerful nation would be on their side.
The Sale and Its Impact
The $7.2 million in gold equated to roughly 5 million ounces at the prevailing gold price of 90 cents per ounce in 1870. This price for Alaska was comparable to the Louisiana Purchase, which was an earlier and similarly significant land acquisition, of course by the United States from France.
The sale of Alaska to the United States in 1867 was a complex decision, addressing multiple factors. It provided substantial financial relief for the Russian Empire, strategically realigned their alliances, and ensured that British expansion would not occur at their expense. This transaction, while controversial at the time, laid the foundation for Alaska's role as an integral part of the United States.
Today, the sale of Alaska remains a fascinating historical event, reflecting the geopolitical complexities of the 19th century and the far-reaching consequences of international treaties and agreements.