Alaska Story: Why Russia Sold Alaska to the US for $7.2 Million—And Why It Matters as Putin Meets Trump There

The historic meeting between US President Donald Trump and Russian President Vladimir Putin on August 15, 2025, is set in Anchorage, Alaska—a location with deep geopolitical significance and an intriguing backstory. Alaska, though part of the US today, once belonged to the Russian Empire. The story of how and why Russia sold Alaska to America reveals layers of strategy, economics, and politics that still resonate in current US-Russia relations.

The Emergence of Russian Alaska

In the 18th century, Russia expanded eastward beyond Siberia. In 1741, Russian explorer Vitus Bering reached Alaska, sparking the beginning of the fur trade focused on valuable animal pelts like seal and otter skins. Sitka became the capital of Russian America. However, vast distances meant Alaska was isolated and difficult to govern, with aid from Russia taking months during crises.

During the Crimean War in the 1850s, British naval forces targeted and attacked Russian settlements in Alaska. This exposed Russia’s vulnerability in protecting such a remote territory.

Why Russia Sold Alaska

By the 1860s, Russian Czar Alexander II faced a tough choice. Maintaining Alaska was expensive, and declining fur trade profits made the region less economically viable. There was also a fear that in any future conflict with Britain, Alaska could be lost without any compensation.

Russia saw an opportunity in selling Alaska and turned to the United States. American Secretary of State William Seward was a strong proponent, viewing Alaska as a strategic gateway to Asia. After negotiations on March 30, 1867, Russia sold Alaska’s 1.57 million square kilometers to the US for $7.2 million—roughly 2 cents per acre.

At that time, this purchase was mocked in America as "Seward's Folly," with many considering the icy, remote land worthless.

Alaska’s Hidden Wealth and Strategic Value

History proved otherwise. By 1896, the Klondike Gold Rush made Alaska a treasure trove. The 20th century brought the discovery of immense oil and gas reserves, making Alaska a major energy source for the US.

Geographically, Alaska is positioned just 85 km from Russia's easternmost points, making it a vital military and surveillance outpost—especially during the Cold War and continuing into today. Its proximity to the Arctic Circle places it at the forefront of emerging geopolitical contests over Arctic shipping routes, natural resource extraction, and military dominance.

The Strategic Importance of Alaska Today

Alaska hosts the largest US military base in the Arctic, Joint Base Elmendorf-Richardson, where Trump and Putin met. From here, the US monitors Arctic activity and Russian maneuvers, underscoring Alaska’s critical role in national security.

As the Arctic ice melts due to climate change, new sea routes open and competition for untapped oil and gas intensifies between the US, Russia, China, and other Arctic nations.

The Trump-Putin Meeting: Symbolism and Significance

Holding talks in Alaska is a clear strategic signal. The two leaders meet not just to discuss the Ukraine war but also to consider broader issues like Arctic policy, energy security, military balance, and new technology cooperation or rivalry.

The choice of Alaska conveys that this remote land—once sold cheaply by Russia—has become an indispensable geopolitical chessboard influencing the future of global power dynamics.

Did Russia Regret Selling Alaska?

Historians suggest that had Russia retained Alaska, its Arctic strategy could have been stronger today, fortifying its presence in the region. Conversely, for the US, Alaska remains a critical asset of energy wealth, defensive strength, and geopolitical advantage.

Alaska’s Role in the Future

With climate change reshaping geopolitical interests in the Arctic and rising tensions globally, Alaska’s importance is expected to grow. Whether it becomes a ground for conflict or cooperation between the US and Russia and other powers remains to be seen. The Trump-Putin summit could mark the beginning of new negotiations shaping the future of this strategically vital region.

In essence, the story of Alaska—from a remote Russian colony sold for a mere $7.2 million to a linchpin of 21st-century geopolitics—reflects how historical decisions echo through time, influencing even the highest-level diplomatic meetings today.