Alaska, widely recognized today as a vast and resource-rich region of the United States, was not always American territory. The history of this land stretches back to the 1700s, when Russian explorers first made the treacherous journey across the Bering Strait, drawn by the promise of fur and opportunity in the uncharted wilderness.

Over time, changing fortunes and geopolitical concerns led Russia to reconsider its claim on Alaska. Mounting financial pressures and the threat of British expansion shifted priorities, eventually paving the way for negotiations with the United States. The resulting sale became one of the most remarkable real estate deals ever made, altering the course of both Russian and American history.

Key Takeaways

Alaska was first explored and settled by Russia before being sold to the United States.
Economic challenges and international threats led Russia to decide to sell Alaska.
The Alaska Purchase significantly impacted both nations and shaped future developments.

The Alaska Deal: A Landmark Real Estate Transaction

The Transaction Unveiled

In March 1867, representatives from Russia and the United States negotiated through the night to reach terms on the transfer of Alaska. After lengthy talks, both sides signed the agreement at 4 a.m. on March 30. The deal granted the United States close to 600,000 square miles for the sum of $7.2 million—an amount that worked out to about 2 cents per acre.

The low price reflected several factors. Russia was motivated to sell due to concerns over defense costs, especially after its recent military losses and the risk of British expansion from neighboring Canada. The United States, meanwhile, had a tradition of expanding its territory through large land purchases and saw this acquisition as a logical next step.

Land Dimensions and Worth

Alaska is enormous, measuring nearly 600,000 square miles. The territory is so large that only eighteen countries around the globe are bigger. For comparison, it is almost two and a half times larger than Texas, the next biggest U.S. state.

Below is a table summarizing Alaska’s size relative to other land areas:

Region/Country Area (Square Miles) Alaska ~600,000 Texas ~268,600 Ireland (for glacier reference) ~32,600

Alaska features almost 30,000 square miles of glaciers, including the continent’s largest, the Bering Glacier. The land’s value was greatly understated at the time, considering its natural resources and strategic location, yet the price paid remains one of history’s lowest rates for territory of its scale and richness.

Alaska Prior to Its Sale

Russia’s Discovery and Claim to Alaska

Centuries before Alaska became part of the United States, Russia established its presence there. Russian explorers, mainly Siberian fur traders and merchants, ventured across the harsh Bering Strait. Their primary interest was to expand the fur trade, particularly as animal populations in Siberia dwindled, making Alaska an attractive new hunting ground.

By 1799, the Russian-American Company launched settlements to further the fur industry under imperial sponsorship. However, only small outposts took hold, and the fur trade declined over time due to overhunting.

Close Ties: Russia and Alaska Across the Water

Despite how maps often depict Russia and Alaska as far apart, there is only a 53-mile gap between them at the Bering Strait. This short distance made the prospect of exploration and settlement possible for those willing to brave the dangerous crossing.

This proximity also meant that Russia viewed Alaska as an extension of its Siberian frontier. However, this closeness eventually raised concerns about defense, especially as other colonial powers expanded nearby.

Vitus Bering’s Arrival on Alaskan Shores

In 1741, Vitus Bering, acting on orders from Tzar Peter the Great, reached Alaska after crossing the North Pacific. His landing established a Russian claim to the territory over 120 years before it joined the United States.

Bering’s legacy lives on in the region’s geography, with the Bering Strait, Bering Island, Bering Sea, and the Bering Glacier all bearing his name. Tragedy struck Bering and his crew shortly after their arrival, as scurvy claimed many of their lives.

Alaska’s Unspoiled Landscapes and Abundant Wildlife

Alaska’s terrain has long been marked by its vastness and rugged wilderness. With a land area nearly two and a half times the size of Texas, it ranks among the largest territories in the world.

The region is known for its cold climate, enormous glaciers covering about 30,000 square miles, and rich wildlife. Russian trappers were drawn to the abundance of fur-bearing animals such as sea otters, bears, foxes, and wolves. Large-scale hunting led to severe declines in animal populations, particularly the sea otter, which was hunted almost to extinction. The harsh and isolated landscape meant colonization remained limited primarily to coastal areas, and the number of Russian settlers never grew beyond a few thousand.

Russian Rule Over Alaska

Animal Skins Trade and the Drive for Wealth

During the 1700s, Russia’s primary interest in Alaska lay in its abundant animal populations. The region was rich in bears, wolves, foxes, and especially sea otters. The high demand for furs in Russia, combined with the depletion of Siberian wildlife due to overhunting, made Alaska an attractive new frontier for trappers and merchants.

Siberian fur trappers made hazardous journeys across the Bering Strait. Despite dangerous sea crossings and Alaska’s harsh wilderness, many sought their fortunes in the fur trade. Over time, intense trapping dramatically reduced animal numbers, with sea otters being especially affected by near-extinction levels.

Main fur-bearing animals targeted:

Animal Commercial Importance Population Impact Sea Otter Very high (luxurious fur) Nearly wiped out Fox High Substantial decline Bear Moderate Population decrease Wolf Moderate Population decrease

Establishment of the Russian-American Trading Enterprise

In 1799, the Russian-American Company was formed under Emperor Paul I. This state-backed venture aimed to set up new settlements and maximize income from fur trading across Alaska. The company established only a few small coastal outposts, largely because inland travel and survival proved difficult.

The company’s operations focused on expanding the reach of Russian fur traders. However, overhunting soon led to diminishing returns, and the economic viability of the fur business began to decline.

Key Objectives of the Russian-American Company:
- Expand Russian settlements along Alaska’s coast
- Dominate the fur trade in the North Pacific
- Administer and control the region for the Russian Empire

Patterns of Russian Colonization and Inhabitants

The number of Russians who actually settled in Alaska remained small. Due to the severe environment and isolated location, the population of Russian colonists never exceeded about 4,000 people. Most of these settlers stayed close to the coastline, rarely venturing into Alaska’s vast interior.

Russian outposts typically served as trading hubs and bases for further exploration. Vast glaciers and difficult terrain made large-scale settlement impractical, so the Russian presence in Alaska stayed minimal throughout their rule.

Population facts:

Peak Russian settler population: ~4,000
Most settlements were small coastal sites
The interior was largely untouched by Russian colonists

Despite more than a century of Russian control, their footprint in Alaska remained limited both in population and in physical settlement.

Weakening Russian Stakes in Alaska

Overexploitation and Collapse of the Fur Business

Russian interest in Alaska began with the pursuit of valuable animal pelts. Hunters and trappers targeted bears, wolves, foxes, and especially sea otters, driving many species to the brink of extinction.
Depleting animal populations made it harder to sustain the fur trade, which had been the main economic motivation for Russian presence in the region. By the mid-19th century, opportunities for profit had sharply declined, leaving Russian settlements with limited resources and little reason to continue their efforts.

Animal Targeted Impact on Population Sea Otter Near extinction Bear Significant decline Fox Reduced numbers

Consequences of Defeat in the Crimea

Following the costly loss in the Crimean War, Russia’s financial position was severely weakened. The war, which lasted two and a half years, drained economic resources needed to maintain distant interests like Alaska.
This hardship made continued control over remote colonies even less practical, especially as Russia looked to stabilize and recover closer to home.

Lasted: 2.5 years
Result: Substantial financial strain for Russia

British Expansion Pressure from the North

Russian officials were increasingly concerned about British power in nearby Canada. With Alaska poorly defended and located next to British-controlled territory, there was a real risk of invasion.
Britain’s extensive empire made this threat credible. Russian leaders feared that an attack could result in losing Alaska with no compensation and shift regional control further in favor of their long-time rivals.

Key Points:

Britain's Canadian territory posed a direct threat to Alaska.
Alaska’s small Russian population made defense unlikely.
The proximity of British power accelerated Russian decisions regarding Alaska's future.

Bargaining the Alaska Purchase With the United States

U.S. Territorial Ambitions

Throughout the 1800s, the United States rapidly increased its landholdings, pushing westward after securing independence. By 1848, the country controlled territory stretching from the Atlantic to the Pacific. This mindset made the U.S. an ideal candidate when Russia sought a buyer for Alaska, as expansion was practically official policy.

Relating to the Louisiana Land Deal

The U.S. had experience in buying huge swathes of land, most notably in the transaction with France that secured the Louisiana Territory. That purchase included areas now part of fifteen states and cost the U.S. government fifteen million dollars. Compared to this, the forthcoming Alaska negotiations set a new precedent for mega-sales.

Previous U.S. Land Deals Area (sq miles) Price Year Louisiana Purchase ~828,000 $15,000,000 1803 Alaska Purchase ~600,000 $7,200,000 1867

Delays and the American Civil Conflict

Negotiations between Russia and the United States started at the beginning of the 1860s. The initial American bid was five million dollars, which did not impress Russian officials. However, before talks could advance, the outbreak of the American Civil War put the matter on hold for five years as national priorities shifted.

Key Points:

First U.S. offer: $5,000,000
Russian negotiators expected more
Civil War paused talks until conflict ended

Agreement Reached and Contract Executed in 1867

When discussions resumed in 1867, Russia presented a straightforward proposal: 600,000 square miles, recently depleted of its once-abundant sea otters. Russian minister Eduard de Stoeckl and American Secretary of State William Seward spent a night in intense bargaining. The official contract was signed at 4:00 am on March 30, 1867, finalizing the transfer.

Details of the Final Deal:

Size: About 600,000 square miles
Price: $7,200,000 (roughly 2 cents per acre)
Signed: March 30, 1867, at 4 a.m.

Note: The agreement was conducted entirely between representatives of Russia and the United States, with no involvement from the indigenous populations living in Alaska at the time.

Enduring Effects of Acquiring Alaska

The Alaska Purchase played a significant role in shaping both American territory and access to valuable resources. The United States acquired almost 600,000 square miles of land, making Alaska one of the largest and most resource-rich regions under its control. At just 2 cents per acre, the scale of the acquisition was substantial compared to previous land deals, such as the Louisiana Purchase.

Key Outcomes:

Land Expansion: Alaska is nearly two and a half times the size of Texas, and ranks above most countries in area worldwide.
Natural Resources: The vast landscapes include an abundance of glaciers (almost 30,000 square miles) and the largest glacier in North America.
Geopolitical Significance: The proximity to Russia and Canada altered North American boundaries and shifted regional influence.

Feature Detail Land Area Acquired Nearly 600,000 square miles Cost per Acre 2 cents Number of Glaciers About 30,000 square miles of glacier coverage Comparative Size 2.5x Texas; 18 countries are larger globally

Although initially seen by some as an impractical wilderness, the purchase later revealed Alaska’s value through rich natural resources and strategic location. The initial Russian colonization efforts, limited to a peak of about 4,000 settlers, left the region largely undeveloped, allowing the United States to chart its own course in managing the land’s resources and opportunities.

Seward's Folly: Why Russia Sold Alaska to America for $7.2 Million in 1867