The increase in foreign intervention in the conflict results in the American Civil War dragging on until November 1866, when General Robert E. Lee formally surrenders the military of the Confederacy to the Union. The CSA collapses quickly afterwards, and is formally dissolved on 31 December, 1866.
In part to recoup losses incurred by military intervention in the United States and also to help fund liberal reforms back home, Russia offers the colony of Alaska for sale for an initial asking price of 7 million US dollars. However, America, weary from its civil military conflict, bargains with the Russians, with the selling price eventually agreed upon being a mere 5.2 million US dollars in March of 1868.
Still in need of further funds, Russia turns next to its close ally, Germany. Kamchatka, one of Russia's furthest-east holdings, was once a significant stop-over point for shipments to and from Russian America. With Alaska having been transferred to US control, though, it has lost a great deal of its utility. Additionally, a minor attack on one of the peninsula's major forts by Japanese naval forces while the American Civil War was ongoing (the attack the result of a completely separate conflict over the Kuril island chain), whilst eventually repulsed, revealed the vulnerability of such a far-flung colony to the Russians.
Thus, the peninsula was offered to the Germans for the asking price of a mere 3.1 million Goldmarks. Germany, wishing to establish international prestige as a colonial power, as well as to secure its position as a blue-water naval force, responds by asking for, in addition to Kamchatka, the portion of the Kuril Island chain then controlled by Russia, as well as basing rights out of the Russian port of Vladivostok, for a total asking price of 4 million Goldmarks.
Much like the Alaska Purchase in the United States, the sale is controversial. The incumbent government believes that it is a good idea, citing the potential of not only military projection, but also of trade with the United States. The chairman, Otto von Bismarck, of the main German opposition party, the German National Party [1], was strongly opposed to the purchase, however, as well as the concept of colonial expansion anywhere beyond Europe. He wished to focus attention towards more local issues, such as managing relations with Britain and ensuring the continuation of the Berlin Treaty alliance.
Regardless, the German government goes ahead with their offer to purchase Kamchatka, the Kurils and obtain leasing rights for Vladivostok. The Russians, needing the money to finalise Alexander II's many social, economic, military and infrastructure reforms, agree, and authority over Kamchatka and the northern Kurils, along with basing rights in Vladivostok, is conveyed in February 1869. German Siberia, as the Kamchatka-Kurils colony is soon titled, will be the first of many German colonies around the globe.[/FONT][FONT="]