The United States paid Russia $7.2 million in 1867 to purchase Alaska.

This historic deal, signed on March 30, 1867, under Secretary of State William H. Seward, covered about 586,000 square miles—roughly 2 cents per acre. The payment was finalized via a Treasury check issued on August 1, 1868, after congressional delays tied to political disputes like Andrew Johnson's impeachment.

Deal Background

Russia sought to offload Alaska due to high maintenance costs, overhunting of fur-bearing animals, and fears of British seizure post-Crimean War. Seward championed expansion for trade routes to Asia and resources, despite critics dubbing it "Seward's Folly" or "Seward's Icebox". Formal transfer happened October 18, 1867, at Sitka, raising the U.S. flag over sparse Russian settlements.

Adjusted Value Today

That $7.2 million equates to about $135–150 million in 2026 dollars, factoring inflation—but Alaska's oil, gold, and fisheries have generated trillions, making it a legendary bargain.

Aspect| Details
---|---
Amount Paid| $7.2 million (gold coin via Riggs Bank) 5
Land Size| 586,412 sq mi (~1.5M sq km) 9
Cost per Acre| ~$0.02 4
Key Negotiators| Seward (U.S.), Stoeckl (Russia) 1
Modern Equivalent| $135M+ (inflation-adjusted) 7

Initial Reactions & Legacy

  • Americans split: Optimists eyed resources; skeptics mocked the "polar bear garden."
  • Russians regretted little, viewing it as strategic divestment from a remote outpost.
  • Gold rush (1896) and oil (1968) proved Seward right, boosting U.S. by 20%.

"The purchase of Alaska... will take another generation to find out." – Seward

TL;DR: $7.2M for Alaska in 1867—a steal now worth trillions.

Information gathered from public forums or data available on the internet and portrayed here.