Why did Russia sell Alaska for only $7.2 million to the US? Biggest mistake?
By Jacruz25
@Jacruz25 (1124)
Philippines
October 15, 2011 1:05am CST
In 1866 Alaska was still a part of Russia and they owned the land for 125 years. Then by 1867 Russia made a decision to sell it to the United States for only $7.2M ($109,133,896 today's value). It appears that Russia had financial crisis during those days but do you think selling a land area of 663,267 sq miles (the size of Libya) for only $109,133,896 today is a wise decision? There are oil reserves in alaska so I think (even without the oil reserves) Russia made a wrong move in selling it to the USA. For the US it is money worth spent.
1 person likes this
7 responses
@grandpa_lash (5225)
• Australia
15 Oct 11
I disagree with your maths: I make it $446,400,000 - that is, the average wage in the US in 1890 at$500 and currently about $31.000 = x 62.
Lash
@grandpa_lash (5225)
• Australia
15 Oct 11
Just realised, should have looked at 1866, which would have made the equivalent even greater.
Lash
@Jacruz25 (1124)
• Philippines
15 Oct 11
Your calculations maybe right, FYI ($100M) it's not my own calculation, I just got that from a website. Who knows, we were not there during those time it's almost 145 years ago anyway. Whatever it's actual value now, even if it's $1B it's still a small amount of money these days. That's a very huge land to sell it for that amount. If that's still the price of land these days America could buy the world.
@katrinapaz (2436)
• Philippines
16 Oct 11
this is nice to know! Russia might have needed the money very much and may have not explore Alaska well at that time. i think it was the only way that they can gain money. now the US have Alaska and is making use of its resources. 
@maximax8 (31046)
• United Kingdom
15 Oct 11
I have been to California and Hawaii in the States and British Colombia in Canada. I haven't ever been to Alaska or Russia. Looking at a world map the whole of the USA is together except for Hawaii out in the Pacific Ocean and Alaska north of Canada.
If Russia was having financial difficulties in 1886 that was the reason they sold it to the USA for seven point two million dollars. Yes, it is a country the size of Libya and it has oil. I believe Russia made the wrong move selling Alaska. The USA got a bargain for sure.
Convicts got sent to Australia from Great Britain. Now Australia is such a wonderful country and the people that live there are very lucky. History can be strange sometimes.
@ravalarun (337)
• India
15 Oct 11
I think russi taken right decission, its was requirements of that time, if they do not did so might russia loss more then current lost.. time is most important which russia has passed during F.C
@cmoneyspinner (9219)
• Austin, Texas
15 Mar 16
Yes! It was definitely money well spent for the USA. You're right. Even without the oil reserves, Alaska is a gem! No doubt Russia still regrets selling Alaska. But oh well! No point crying over spilled milk. BTW, Russia was having financial problems then. Russia is having financial problems now. Actually the more correct statement is “Russia might be having financial problems, but Putin and his pals are sitting fat and living large!”
Post-communist Russia has gone from a friend of the United States to a rival under President Vladimir Putin. Has it also gone back to the U.S.S.R.?
@waflay (2737)
• Nairobi, Kenya
15 Oct 11
We have a saying that goes 'what is yours is the one that can save you', so if the country was in financial crisis and they had only one way to keep going then it was worth it. We may think it was a mistake but no, Russia was saved from its life threatening financial crisis. The economy by then was good in may countries, and having such kind of money by that time was much a lot. Even though you have indicated the value as per current value, the fact is you cannot compare those days and our current time.
