1740s to 1800
From 1743 small associations of fur traders began to sail from the shores of the Russian Pacific coast to the Aleutian islands. As the runs from Asiatic Russia to America became longer expeditions (lasting two to four years or more), the crews established hunting and trading posts. By the late 1790s some of these had become permanent settlements. Approximately half of the fur traders were Russians from various European parts of the Russian Empire or from Siberia. The others were indigenous people from Siberia or Siberians with mixed indigenous, European and Asian origins.
Rather than hunting the marine life, the Russians forced the Aleuts to do the work for them. As word spread of the riches in furs to be had, competition among Russian companies increased and the Aleuts were enslaved. Catherine the Great, who became Empress in 1763, proclaimed goodwill toward the Aleuts and urged her subjects to treat them fairly. On some islands and parts of the Alaska Peninsula, groups of traders had been capable of relatively peaceful coexistence with the local inhabitants. Other groups could not manage the tensions and perpetrated exactions. Hostages were taken, families were split up, and individuals were forced to leave their villages and settle elsewhere. The growing competition between the trading companies, merging into fewer, larger and more powerful corporations, created conflicts that aggravated the relations with the indigenous populations. Over the years, the situation became catastrophic.
As the animal populations declined, the Aleuts, already too dependent on the new barter economy created by the Russian fur-trade, were increasingly coerced into taking greater and greater risks in the highly dangerous waters of the North Pacific to hunt for more otter. As the Shelekhov-Golikov Company developed as a monopoly, it used skirmishes and violent incidents turned into systematic violence as a tool of colonial exploitation of the indigenous people. When the Aleuts revolted and won some victories, the Russians retaliated, killing many and destroying their boats and hunting gear, leaving them no means of survival. The most devastating effects were from disease: during the first two generations (1741/1759-1781/1799 AD) of Russian contact, 80 percent of the Aleut population died from Eurasian infectious diseases; these were by then endemic among the Europeans, but the Aleut had no immunity against the new diseases.
Though the Alaskan colony was never very profitable because of the costs of transportation, most Russian traders were determined to keep the land for themselves. In 1784 Grigory Ivanovich Shelekhov, who would later set up the Russian-Alaska Company that became the Alaskan colonial administration, arrived in Three Saints Bay on Kodiak Island with two ships, the Three Saints and the St. Simon. The Koniag Alaska Natives harassed the Russian party and Shelekhov responded by killing hundreds and taking hostages to enforce the obedience of the rest. Having established his authority on Kodiak Island, Shelekhov founded the second permanent Russian settlement in Alaska (after Unalaska, permanently settled from 1774) on the island's Three Saints Bay.
In 1790, Shelekhov, back in Russia, hired Alexander Andreyevich Baranov to manage his Alaskan fur enterprise. Baranov moved the colony to the northeast end of Kodiak Island, where timber was available. The site later developed as what is now the city of Kodiak. Russian colonists took Koniag wives and started families whose surnames continue today, such as Panamaroff, Petrikoff, and Kvasnikoff. In 1795, Baranov, concerned by the sight of non-Russian Europeans trading with the Natives in southeast Alaska, established Mikhailovsk six miles (10 km) north of present-day Sitka. He bought the land from the Tlingit, but in 1802, while Baranov was away, Tlingit from a neighboring settlement attacked and destroyed Mikhailovsk. Baranov returned with a Russian warship and razed the Tlingit village. He built the settlement of New Archangel on the ruins of Mikhailovsk. It became the capital of Russian America - and later the city of Sitka.
As Baranov secured the Russians' settlements in Alaska, the Shelekhov family continued to work among the top leaders to win a monopoly on Alaska's fur trade. In 1799 Shelekhov's son-in-law, Nikolay Petrovich Rezanov, had acquired a monopoly on the American fur trade from Tsar Paul I. Rezanov formed the Russian-American Company. As part of the deal, the Tsar expected the company to establish new settlements in Alaska and to carry out an expanded colonization program.