What is happening in the Ukraine is not a short term anomaly, but the first major battle in the new and highly economic method of warfare.
This is more serious than most are willing to accept. This is more long term than most can imagine. This is the "Game Changer of the Century."
How Putin is Reinventing Warfare
The Kremlin’s approach might be called "non-linear war," a term used in a short story written by one of Putin’s closest political advisors, Vladislav Surkov, which was published under his pseudonym, Nathan Dubovitsky, just a few days before the annexation of Crimea. Surkov is credited with inventing the system of "managed democracy" that has dominated Russia in the 21st century, and his new portfolio focuses on foreign policy.
As the Kremlin faces down the West, it is indeed gambling that old alliances like the EU and NATO mean less in the 21st century than the new commercial ties it has established with nominally "Western" companies, such as BP, Exxon, Mercedes, and BASF. Meanwhile, many Western countries welcome corrupt financial flows from the post-Soviet space; it is part of their economic models, and not one many want disturbed. So far, the Kremlin’s gamble seems to be paying off, with financial considerations helping to curb sanctions. Part of the rationale for fast-tracking Russia’s inclusion into the global economy was that interconnection would be a check on aggression. But the Kremlin has figured out that this can be flipped: Interconnection means that Russia can get away with aggression.
We can see a similar thinking informing the Kremlin as it toys with Eastern Ukraine, using indirect intervention through local gangs, with a thorough understanding of the interests of such local power brokers such as Donetsk billionaire Rinat Akhmetov (Ukraine’s richest man) or Mikhail Dobkin, the former head of the Kharkiv Regional Administration and now presidential candidate. Though these local magnates make occasional public pronouncements supporting Ukraine’s territorial integrity, their previous support of Yanukovych makes them wary of the new government in Kiev. Just the right degree of separatism could help guarantee their security while ensuring that their vast financial global interests are not harmed. "Think global, act local" is a favorite cliché of corporations — it could almost be the Kremlin’s motto in the Donbass
It is better to understand the Kremlin’s view of globalization as "corporate reiding" (with an "e"), the ultra-violent, post-Soviet cousin of western corporate "raiders," and the way many in Russia made and make their money. "Reiding" involves buying a minority share in a company, and then using any means at your disposal (false arrests, mafia threats, kidnapping, disinformation, blackmail) to acquire control. Russian elites sometimes refer to the country as a "minority shareholder in globalization," which, given Russia’s experience with capitalism, implies it is the world’s great "corporate raider." Non-linear war is the means through which a geo-political raider can leverage his relative weakness. And this vision appeals to a very broad constituency across the world, to those full of resentment for the West and infused by the sense that the "global village" model is a priori rigged. For all the talk of Russia’s isolation, the BRIC economies have actually been subdued in their criticism of the annexation of Crimea, with the Kremlin thanking both China and India for being understanding.
Perhaps, despite what Obama says, there is a battle of ideas going on. Not between communism and capitalism, or even conservatives and progressives, but between competing visions of globalization, between the "global village" — which feels at once nice, naff, and unreal — and "non-linear war." It is naïve to assume the West will win with this new battle with the same formula it used in the Cold War. Back then, the West united free market economics, popular culture, and democratic politics into one package: Parliaments, investment banks, and pop music fused to defeat the politburo, planned economics, and social realism. But the new Russia (and the new China) has torn that formula apart: Russian popular culture is Westernised, and people drive BMWs, play the stock market, and listen to Taylor Swift all while cheering anti-Western rhetoric and celebrating American downfall.