Developing an effective U.S. strategy toward Russia and its neighbors is an increasingly complex and difficult challenge. The breakdown in U.S.-Russian relations is a product of long-standing disagreements about the fundamentals of U.S. and Russian national security interests and policies. It cannot be repaired quickly or easily, or without a major course correction by either or both sides. Closer ties with Russian President Vladimir Putin cannot—or should not—be an end in themselves. Nor should we fool ourselves that they will be sufficient to overcome these disagreements. The U.S.-Russian relationship will remain largely competitive and adversarial. The challenge for Washington will be managing unavoidable tensions with Moscow while advancing American interests and staying true to U.S. principles. The new administration should avoid fueling unrealistic expectations of a breakthrough and instead seek incremental progress on specific topics based on a set of guiding principles. Setting and observing priorities will be key to managing this relationship, as will be separating the critical from the desirable and being realistic about what can be accomplished.