> ...relegated to third world when it comes to participating in global leadership/trade.

Because when given more civilized tools, they nonetheless alienate the world. They could have annexed Crimea peacefully, at least the part that they actually needed, but chose instead to engage in a semi-hot war while sending mixed signals with the referendum.

Then President Obama completely shut the door on them, which did not have the effect of changing their behaviour; this in Russia after all. What the Obama Administration did in response to the annexation of Crimea was close off most avenues of reconciliation; and the subsequent propaganda about President Trump has kept those avenues closed.