How much did the United States buy Alaska from Russia?

Фото: Depositphotos

Exactly 150 years ago - October 18, 1867 - the Russian Empire sold its North American colonies to the United States for $7 million. Later, this territory of 1,5 million square kilometers became the state of Alaska.

Edition with the BBC calculated how large this amount was by the standards of that time.

In 1867, the amount was quite substantial for the American treasury.

The most logical way to estimate the real value of a given amount in the past is to calculate what share of US GDP the purchase amount was 150 years ago, and see how many dollars a similar share would be relative to the current size of the US economy.

Alaska cost the US government half the price of building a single courthouse in New York. The construction was initiated by one of the most corrupt politicians in American history, William Tweed, and estimatedIt cost up to 14 million dollars, taking into account the money stolen.

Фото: Depositphotos

What can you buy for the same amount now?

The proceeds from the sale of Alaska, equivalent to $15 billion in modern money, is about 844 billion rubles at the current exchange rate.

With this money in Russia one could do the following:

• To renovate Moscow twice, that is, to demolish more than 5 thousand apartment buildings and build new ones with higher storeys in their place.
• For a third, to finance the Winter Olympics in Sochi and the development of the city on the eve of its holding.
• Compensate for one year of losses from Western sanctions against Russia imposed after the annexation of the Crimea in the 2014 year.
• Six years contain annexed Crimea or build almost four bridges across the Kerch Strait, connecting the Crimea peninsula with Russia.
• Create 62 Zaryadye parks in the center of Moscow.
• Build 20 Zenit Arena stadiums in St. Petersburg or almost five Vostochny cosmodromes.

What did the proceeds go?

According to the surviving documents, Russia spent most of the foreign currency received on the purchase of "railway supplies."

Was Alaska a bargain?

Alaska is rich in natural resources (first gold was found there, then oil), but it was quite costly in terms of the costs of the federal center.

University of Iowa professor David Barker estimates that Washington overpaid for the new territory; according to him, Alaska's justified price was a maximum of $5 million in 1867 prices.

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Why Russia sold Alaska to the United States

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