In 1867, the Russian Empire sold its North American possessions to the United States of America. The deal was worth 7.2 million dollars. The agreement was signed on March 30 in Washington by Russian ambassador Eduard Stoeckl and U.S. Secretary of State William Seward.

Under the terms of the agreement, the United States received the Alaskan Peninsula, the Alexander and Kodiak archipelagos, the Aleutian Islands, and several islands in the Bering Sea. The total area of the transferred territory was approximately 1.5 million square kilometers.

The sum of 7.2 million dollars was equivalent to about 11 million rubles in gold at the time. However, when adjusted for inflation since 1867, 7.2 million dollars are roughly equivalent to 133-150 million dollars today. If valued as a percentage of the U.S. GDP, the equivalent may exceed 2.5 billion dollars.

Despite the seemingly low price, the sale was beneficial for Russia. At the time, Alaska was a remote and difficult-to-manage territory that incurred losses due to costs of maintenance and protection. Moreover, Russia feared that in the event of a war with Britain, Alaska would be seized by the British, and Russia would receive even less for it.

For the United States, the purchase turned out to be extremely fortunate. In addition to its strategic location, enormous reserves of gold, oil, and other natural resources were later discovered in Alaska, whose value far exceeded the initial costs.

Permanent link to this publication: