FinanceBanking

Russia Is Becoming a Second-Rate State Under Putin, Says Eurasia Group's Ian Bremmer

Bloomberg Television
Bloomberg Television•Feb 10, 2026

Why It Matters

The shift reshapes global risk calculations, compelling businesses and policymakers to diversify away from U.S. dependence while navigating a weaker Russia and an ascendant China.

Key Takeaways

  • •U.S. retreat from global leadership fuels economic diversification worldwide.
  • •Russia's war costs turn it into a second‑rate state.
  • •China leverages U.S. disengagement to expand influence in institutions.
  • •Allies de‑risk by shifting trade away from America, not decoupling.
  • •Future U.S. leadership style will determine stability or further decline.

Summary

Ian Bremmer of Eurasia Group warned that Russia is slipping into a second‑rate state under Putin, while the United States is abandoning its traditional role as the guarantor of collective security, free trade and democratic norms.

Bremmer argued that the U.S. retreat is prompting allies to “de‑risk” rather than fully decouple, shifting supply chains and capital away from America toward Europe, China and India. At the same time, Russia’s economy and diplomatic clout have eroded dramatically due to the Ukraine war, leaving it weaker across security, economy and diplomacy.

He cited vivid examples: “Russia’s dug its own grave” and highlighted China’s rapid response to fill gaps, such as a $500 million contribution to the WHO after the U.S. withdrew, and Beijing’s push to dominate weakened multilateral institutions.

The trend suggests a more multipolar economic landscape but a security environment still anchored by U.S. power, forcing corporations and governments to reassess risk, diversify partners, and prepare for a world where American leadership is no longer a given.

Original Description

Ian Bremmer, Founder & President at Eurasia Group, discusses US foreign policy's role in the current global world order.
Chinese regulators have advised financial institutions to rein in their holdings of US Treasuries, citing concerns over concentration risks and market volatility, according to people familiar with the matter.
Officials urged banks to limit purchases of US government bonds and instructed those with high exposure to pare down their positions, the people said, asking not to be identified discussing private deliberations. The directive doesn’t apply to China’s state holdings of US Treasuries.
Communicated verbally to some of the nation’s biggest banks in recent weeks, the guidance reflects growing wariness among officials that large holdings of US government debt may expose banks to sharp swings, the people said. The worries echo those made by governments and fund managers elsewhere amid a brewing debate over the safe haven status of US debt and the appeal of the dollar.
The move was framed around diversifying market risk rather than anything to do with geopolitical maneuvering or a fundamental loss of confidence in US creditworthiness, the people said, adding that officials didn’t given any specific target on size or timing. While significant tensions remain between Beijing and Washington, relations have steadied in the wake of a trade truce last year.
Treasuries slipped on the news, with yields edging higher across maturities in Asian afternoon trading. The dollar weakened slightly against major peers.
--------
More on Bloomberg Television and Markets
Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9
Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.
Connect with Bloomberg Television on:
Connect with Bloomberg Business on:
More from Bloomberg:
Bloomberg Surveillance: https://twitter.com/bsurveillance
Bloomberg Politics: https://twitter.com/bpolitics
Bloomberg Originals: https://twitter.com/bbgoriginals
Watch more on YouTube:
Bloomberg Originals: https://www.youtube.com/@business

Comments

Want to join the conversation?

Loading comments...