In the mid-19th century, Japan ceded the resource-rich island of Sakhalin to Russia. The authorities in St. Petersburg decided to turn this harsh territory into a large prison.

Before the official annexation of Sakhalin to the Russian Empire, it was often visited by Russian subjects, mainly missionaries and merchants, but their stay on the island was brief.

In 1869, Sakhalin was officially declared a place of hard labor and exile with extremely harsh conditions. In the early years, prisoners were shackled during work, and for serious offenses, they could be sentenced to death. Starting in 1884, women were also sent to the Sakhalin penal colony, including the notorious criminal Sonka Golden Hand.

The authorities decided to conduct an experiment similar to the British one in Australia. After serving their sentences, criminals would go into quarantine and become colonists. They were provided with loans in the form of a cow, a horse, seeds, and agricultural tools. However, by 1895, only 30% of the 2,500 free settlers were successfully farming. Most were simply waiting for their sentence to end to return to the mainland.

The Russo-Japanese War became a turning point in the history of Sakhalin. By the start of the war, the island had a population of 46,000. One of the reasons for Russia's defeat was the weak development of infrastructure in the Far East, which hindered the rapid deployment of troops. As a result, the authorities changed their approach to the development of the region.

On April 10, 1906, a law was passed abolishing the Sakhalin penal colony, and gradually all prisoners became free settlers. However, due to tragic events in Russia's history, the island's population sharply decreased to 6,000. Even subsequent attempts to settle Sakhalin with free people were unsuccessful. This rich and beautiful land with a harsh climate and poor soils retained its reputation as an inhospitable and desolate place for many years.