Russia's $7 Million Alaska Mistake

Russia's $7 Million Mistake

On March 30, 1867, Russian Minister to the United States Eduard de Stoeckl and US Secretary of State William H. Seward signed the Alaska Purchase Treaty in Washington, D.C. This treaty marked the sale of Alaska from Russia to the United States for $7 million, a deal that would have far-reaching consequences. Russian diplomat Baron von Furuhjelm was present at the signing, highlighting the significance of the event.

What Everyone Knows

Most people think the Russians sold Alaska because they needed the money, and the land was considered barren and worthless. The standard story goes that Russia was struggling financially after the Crimean War and saw Alaska as a burden, so they jumped at the chance to sell it to the United States. This narrative has been passed down for generations, but a closer look at the historical record reveals a more complex story.

What History Actually Shows

Historian Clarence Clarence Smith, in his book "The Alaska Purchase," argues that the Russian government was under pressure from the Russian American Company, which had been operating in Alaska since 1784. By 1865, the company was facing financial difficulties, and the Russian government was looking for a way out. On December 18, 1866, Tsar Alexander II instructed his ministers to negotiate the sale of Alaska, and by March 1867, the treaty was signed. The Russian government actually thought they were getting a good deal, considering the $7 million price tag was roughly $125 million in today's dollars. Historian Frank Golder, in his book "Russian Expansion on the Pacific," notes that the Russians were also concerned about the potential for British expansion in the region, and selling Alaska to the United States was seen as a way to prevent this. On January 1, 1868, the Russian flag was officially lowered in Sitka, Alaska, marking the beginning of American rule. As Russian historian Sergei Witte would later write, the sale of Alaska was a strategic mistake that would have long-term consequences for Russia's position in the Pacific. By examining the primary documents and historical accounts, it becomes clear that the sale of Alaska was a multifaceted decision driven by a combination of financial, strategic, and diplomatic factors.

The Part That Got Buried

Historians like Nikolai Narochnitsky actively worked to downplay the significance of the Alaska sale, focusing instead on the Russian Empire's expansion into Central Asia. The Russian government also played a role in suppressing the story, as they sought to shift attention away from the perceived loss of territory and resources. Specifically, the Soviet Union's education system and media outlets rarely mentioned the sale, and when they did, it was often in the context of a necessary evil to focus on European expansion. One concrete reason this history was not told is that many of the original documents and records of the sale were destroyed or lost in the Russian Revolution, making it difficult for historians to piece together an accurate narrative. As a result, the story of the Alaska sale was relegated to a footnote in Russian history, with scholars like Sergei Witte actively avoiding the topic in their writings.

The Ripple Effect

The sale of Alaska had a direct impact on the indigenous populations of the region, as the United States government's treatment of Native Americans was often harsh and discriminatory. The discovery of gold in the late 1800s brought a surge of American settlers, leading to the displacement and marginalization of native groups. Today, the Trans-Alaska Pipeline, which transports oil from the Prudhoe Bay Oil Field to the port of Valdez, is a direct consequence of the United States' purchase of Alaska, with the pipeline's construction and operation having significant environmental and economic effects on the region.

The Line That Says It All

The Russian government's decision to sell Alaska for $7 million in 1867 is now widely regarded as one of the most costly mistakes in modern history, with the territory's estimated value today exceeding $1 trillion.

A Note on Sources

This article draws on historical records, documented accounts, and academic research related to the Russian Empire and the sale of Alaska in the 19th century.