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They don't think that any punishment severe enough to deter Russia
Here is another interesting thing about game theory. Mathematically speaking optimal actions depend ONLY on opponent reward matrix.
So pretending to be crazy/irrational is very basic international-game-theory strategy. If you can convince others that you are crazy and your reward matrix is actually different than common-sense one (for example by saying "Spreading communism is worth all the human lives sacrificed!" or something like that) you might get away extracting more reward at the expense of others.
But I would imagine that todays politics are savvy enough to see through it.