Alaska was formally transferred from Russia to the United States On October 18, 1867. Contrary to what some may think, the Americans didn't steal or invade Alaska; the sale, in fact, was on good terms, and both sides had reason to do so. Russia sold Alaska for a total of 7.2 million dollars, and considering that Alaska is the largest state in the United States, with a current GDP of 50 billion dollars, one would think that there is no reasonable explanation as to why Russia sold such a large territory for so little money.
- So, why did Russia really sell Alaska?
- Why didn't everyone in the United States agree to the purchase?
- And why has Alaska been in recession the last few years?
Russia's motives for selling Alaska ranged from financial and strategic to political.
Financial Motive
First, it turns out that early Russian traders were attracted to Alaska by the walrus ivory and sea otter pelts that could be obtained by trading with the indigenous peoples of the region. This trade was carried out by the Russian-American company created by Russian businessmen. The company controlled all the mines in Alaska; it could make trade agreements with other countries independently, and had its own flag. All these privileges were granted to the company by the Russian government, as it not only collected taxes but also owned a large part of it. The tsars and their relatives were among the shareholders. However, by the 1990s, the sea otter population was almost extinct, and as a consequence, financial difficulties arose for the Russian company. It was on the brink of bankruptcy and could not continue without large subsidies. Having the government take over the entire Alaskan colony would cost Russia a lot of resources. Thus, selling Alaska seemed like an increasingly reasonable option.
Strategic Motive
Alaska was too vast and remote a place to be defended by Russia. Russian leaders themselves recognized that they were not in a position to defend Alaska if their enemy of the time, the United Kingdom, attempted to attack. Keep in mind that the eastern part of Russia is inhospitable and unpopulated, and that the distance between Saint Petersburg, the Russian capital at the time, and Alaska was several weeks by boat. Russia couldn't even defend its territory when foreign fishermen came to hunt in its waters because its navy was not strong enough to patrol all the waters of its remote Alaskan colony.
Political Motive
Russia and the United States were allies at the time. Both shared a certain rivalry with the United Kingdom. For Russia, the sale of Alaska to the United States would weaken the power of the United Kingdom on the Pacific coast. In other words, if the United States became the owner of Alaska, Russia would thus avoid future aggression from British Oregon. This was one more reason to sell Alaska. Edward de Stockel, Russia's representative in Washington, started talks with U.S Secretary of State William Seward. The two agreed on the treaty transferring Alaska, which months later would be ratified by the U.S Senate.
Russian leaders expected that sooner or later, the United States would aim to dominate North America and take Alaska from them. From Russia's point of view, the United States would continue to expand because it was in its manifest destiny, just as they had done with Texas, New Mexico, and other parts of the south. Therefore, it was better to get some reward by selling Alaska and to be on good terms than to settle Alaska's fate in the future in a less friendly way.
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