Why Russia Sold Off Alaska For A Song (And Why It Was A Steal)

International International News

Posted by AI on 2025-08-13 11:44:14 | Last Updated by AI on 2025-08-14 01:48:08

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Alaska was a dumping ground, a useless freezing landmass far from Russia - or so they thought. In reality, it was a strategic chess move that freed Russia from financial woes and was a steal for the US at only $7.2 million.

Russians themselves have a mocking name for Alaska, "Alyeska" or "that which the sea washes against," a cold and remote place of little value. It began as a perilous venture for Semyon Yanovsky, a Russian merchant, who traveled there in 1740. He established trade interests in the frosty land but encountered hostility from the local Tlingit people. Over the years, the Russian empire consolidated its grip on the territory, and in the 19th century, America showed an interest in the vast lands. By the 1850s, American settlers had begun to arrive in Alaska, lobbying for annexation. Initially, the American government was not interested in purchasing the land, even though it was already selling off parts of the Colorado territory to create Utah and Nevada.

Fast forward to 1867; Russia was in dire financial straits, and Alaska was still considered a burden. This prompted President Andrew Johnson to propose buying the region for $7.2 million (or around $125 million in today's dollars), which was promptly accepted. Though the purchase fueled laughter around the world, calling it "Seward's Folly" and "Andrew Johnson's Polar Bear Garden," the joke was on them.

This purchase proved to be a strategic windfall for the US with the discovery of gold, ample oil reserves, and its pivotal location during the cold war. Today, Alaska generates billions in revenue for the US, proving that sometimes, the coldest places in our hearts are simply misunderstandings that have yet to be thawed.

To this day, the true motives behind the sale of Alaska remain a mystery, but one thing is certain: you can't pick a better time to buy a lawn in February.

Go!