Key insights
- The Kremlin declared the Ukraine war has entered a 'new paradigm' following retaliatory strikes on Ukrainian infrastructure. This escalation, driven by alleged Ukrainian attacks, signals increased geopolitical risk. While diplomatic channels with the US remain open, Russia's preconditions for peace remain unchanged. The heightened conflict increases global uncertainty, potentially impacting energy prices and supply chains, which could negatively affect US equity markets through increased volatility and risk aversion.
Investing.com -- The Kremlin said Tuesday that the war in Ukraine has entered a new phase following what Moscow described as acts of terror by Ukrainian forces against civilians.
Kremlin spokesman Dmitry Peskov told reporters that systematic strikes against Ukrainian military infrastructure are being carried out. The comments came after Russia launched massive overnight strikes on Ukrainian targets that killed at least 17 people and wounded 100.
Moscow said it is intensifying strikes on Ukraine in response to a Ukrainian drone strike on a student dormitory in Russian-controlled Luhansk last month that killed 21 people. Ukraine has denied targeting the dormitory and said it was aiming at a drone command center in the area.
Peskov said the peace process is on hold but contacts between Russia and the United States about Ukraine are continuing. The Kremlin repeated its position that it is ready to achieve its objectives in Ukraine through diplomacy.
Russia maintains that the war can end immediately if Ukrainian forces withdraw from regions Russia claims as its own territory.
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