Miha Creative/Shutterstock Moscow’s decision to partially mobilize Russia’s military reservists marks the biggest escalation in the Ukraine conflict since it began.Russia’s economy is holding up better than many expected, but hydrocarbon revenues are threatened by escalating Western sanctions later this year.Prospects of a peaceful resolution to the conflict, already dim, appear to be receding further. Save for later Print Download Share LinkedIn Twitter Russia has withstood the barrage of Western sanctions better than its adversaries had hoped. But some cracks are starting to appear. Russia's partial mobilization, announced on Wednesday, and plan to hold hasty referendums on four occupied Ukrainian territories joining Russia have been interpreted in the West as evidence that Moscow's war effort is being credibly challenged by Ukraine’s Nato-backed military. The energy war is also entering a critical phase: Russia’s “war premium” from higher oil and gas revenues is eroding, and pressure will increase with the planned introduction of EU oil sanctions from December. Western leaders keen to see the tide turn against Moscow have seized on these developments for encouragement.
