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Trump, Putin, and the End of Rules-Based Diplomacy

The world is entering a new geopolitical phase, one where traditional alliances and institutions are giving way to a more transactional, power-driven reality. As former MI6 chief Sir Alex Younger explains, the days of multilateral diplomacy and rules-based international order are being replaced by the influence of strongmen like Vladimir Putin, Donald Trump, and Xi Jinping.

At the heart of this transformation is the ongoing war in Ukraine, a conflict that is not just about land but about sovereignty and global power dynamics. While Trump sees the war as a territorial dispute that can be settled with negotiations, Putin has made it clear that he views Ukraine’s very existence as a challenge to Russian security. This fundamental disconnect raises serious concerns about how future diplomatic efforts—especially under a potential Trump presidency—might unfold.

For Europe, this shift presents an urgent challenge. The reliance on soft power is no longer enough; hard power has become the essential ticket to a seat at the negotiating table. With the United States scaling back its global influence, Europe must decide how to assert itself in a world where transactional deals, rather than international norms, shape the future.

As Russia struggles with economic strain and mounting casualties, and as Trump’s potential return to office looms, the global balance of power is at a crossroads. How will this new reality unfold? And what role will Trump, Putin, and Ukraine play in defining the next chapter of international relations?

  • 🌍 Shift in Global Power: The world is transitioning away from multilateral institutions and rules-based order to a system dominated by strongmen and transactional deals, reminiscent of the Yalta Conference in 1945.
  • 🇺🇸 Declining US Influence: The era of American global dominance, which fueled globalization and international security structures, is waning as the US has less ability and will to dictate global rules.
  • 🇷🇺 Russia’s Strategy: Russia’s actions suggest that its main goal is not territorial gains but the complete dismantling of Ukraine’s sovereignty. This clashes with Donald Trump’s view, who sees the conflict primarily as a territorial dispute.
  • 🇪🇺 Europe’s Role: European nations have yet to fully grasp this shift. Soft power alone is insufficient; hard power is becoming the essential entry ticket to global negotiations.
  • 🔥 Putin’s Gamble: The Russian economy is under immense strain, and Russia has suffered heavy casualties in the war. However, Putin sees Trump’s return as an opportunity, potentially miscalculating the leverage the US may still have.
  • 🤝 Potential for a Deal: Trump may have bargaining power if he secures a residual free Ukraine as a negotiation point. However, a poorly executed deal could embolden Russia and set a dangerous precedent for China regarding Taiwan.
  • ⚖️ Europe’s Wake-up Call: Regardless of how the war ends, Europe will bear more responsibility for security. NATO is significantly wealthier than Russia and has the resources to counterbalance its military threats—but only if it acts decisively.

Insights Based on Numbers

  • 🔢 800,000 Russian Casualties: The war has inflicted significant losses on Russia, affecting even its autocratic leadership’s ability to sustain the conflict.
  • 💰 10x Wealth Disparity: European NATO is ten times richer than Russia, emphasizing that Europe has the means to build the necessary military forces if it chooses to act.
  • Russian Economy Under Pressure: Experts predict that the Russian economy cannot sustain the war effort for more than another year, increasing potential leverage in negotiations.

About the author

Andy Richardson

Andy began his trading journey over 24 years ago while in graduate school, sparked by a Christmas gift of investing money and a book. From his first stock purchase to exploring advanced instruments like spread betting and CFDs, he has always sought to expand his understanding of the markets. After facing challenges with day trading and high-pressure strategies, Andy discovered that his strengths lie in swing and position trading. By focusing on longer-term market movements, he found a sustainable and disciplined approach. Through his website, Andy shares his experiences and insights, guiding others in navigating the complexities of spread betting, CFDs, and trading with a balanced mindset.

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