Russia's Economy Already Being Strangled

The irreconcilable differences between Russian President Vladimir Putin and Ukraine’s Petro Poroshenko in Minsk confirm there is no end in sight to Russia’s War on East Ukraine. Its costs are bearing down hard not on Ukraine alone. The looming loss of output, consumption, and employment to Russia due to its rogue-nation behavior and subsequent sanctions imposed by the United States, Europe, Japan, Canada, and Australia will be high. That Putin continues to escalate the conflict, barely bothering to hide Russia’s aggression, shows that he is prepared to shoulder the impending economic costs, perhaps no matter how high. We do not know whether Russia’s elite and people share his judgment.