<![CDATA[Inarguably, 7.2 million US Dollars is a lot of money, but nowadays, one could never dream of buying an entire state with that sum. Yet, in 1867, Russia sold the territory of Alaska to the United States for a mere two cents per acre.
In 1959, Alaska became the 49thstate and the largest of the 50 United States of America. 50 years after the sale, the Americans had already earned the initial price back 100 times over. So, why would Russia agree to such a, seemingly, unfair treaty?
In 2014, the White House’s website gathered more than 35.000 signatures on a petition calling for the return of Alaska to Russia. The petition was eventually cancelled, as it didn’t receive the 100.000 votes necessary to draw a response from the Obama administration.
However, the 35.000 signatures show that there is still a widespread belief that Alaska was annexed unfairly or even illegally, but that is merely a myth. Contrarily to popular opinion the deal was an honest one and both sides had rational reasons to sign it.
As early as the 18thcentury, adventurous Russian travelers, businessmen, and entrepreneurs set up trading agreements with Indigenous People in the region. The Russian-American Company (RAC) traded in various commodities, such as walrus ivory and sea otter fur.
As the company expanded, so did its power. By the 19thcentury, Russian Alaska became a center of international trade. Merchants traded Chinese fabrics, tea, and even ice. Various ship factories were built, and coal and mineral mines were established.
The imperial government itself supported the company, as the tsars and their family members were among RAC’s shareholders. Even at the time, the numerous gold deposits in the territory were already known and exploited.
So why did Russia decide to sell this profitable land? It all started when the RAC brought in new employees and shareholders from military circles, whose unrealistic economic expectations led to the fall of the RAC.