Many economists argue that Russian President Vladimir Putin cannot “afford” peace with Ukraine, because Russia’s economy would collapse as a result. This is not the case.
Any “deal” with Russia over its war against Ukraine that involves the acceptance of territorial losses would be highly dangerous. It would embolden not only Moscow, but other capitals, too, and mark the end of the post-1945 order.
The United States and Europe need a new approach to dealing with Russia. Any new strategy has to accept that the West will be facing an aggressive Russia for decades rather than years.
Russia’s war against Ukraine marks less a rupture in globalization than Russia’s self-imposed removal from the global economy. One consequence may be a more balanced relationship between China and the West.