28 April 2022

Post-war Russia and the Return of Karafuto

Daniel McKay

By now, no one can believe that economic sanctions will force Putin’s Russia to rethink its invasion of Ukraine. The rouble has stabilized, methods of bypassing sanctions are well known, and China will keep economic lifelines open. It may sound trite, but Russia isn’t going to back off just because McDonald’s has shut down its Moscow branches.

As the fighting grinds on, however, another reality becomes clear: Russia’s war chest will suffice for carrying out its ‘special military operation,’ but those resources are unlikely to see it through the peace that follows. At that point, foreign capital will be necessary in order to offset its decoupling from the Western World.

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