Ukraine Says Russia Used An ICBM As War Ratchets Up Further

(Bloomberg) --Russia launched an intercontinental ballistic missile at the central Ukrainian city of Dnipro, according to Ukraine’s Air Force command, in what would be a further major escalation of hostilities and an alarming signal to Kyiv’s Western backers.

The strike, if confirmed, would mark the first use of an ICBM in combat since the weapon was developed at the inception of the Cold War. The missile was launched from Astrakhan by the Caspian Sea, a distance of around 1,000 kilometers (620 miles), according to Ukraine.

The missile used in the attack was a “new” weapon with all the parameters of an ICBM, including the speed and altitude at which it flew, Ukrainian President Volodymyr Zelenskiy said in a video address on his Telegram account posted later on Thursday. “Obviously, Putin is using Ukraine as a testing ground.”

Oil, gold and wheat rose on news of the ICBM’s use, which came as part of a larger missile barrage targeting central Ukraine early on Thursday.

Kremlin spokesman Dmitry Peskov referred questions about the launch of an ICBM to Russia’s Defense Ministry, while separately saying that Moscow takes a “responsible position” to avoiding nuclear conflict, the state-run Tass news agency reported.

The launch of an ICBM, which has a range of more than 5,000 kilometers (3,107 miles) and is primarily designed to deliver nuclear weapons, would mark a significant step up in Moscow’s attacks and send a stark signal to Kyiv’s allies after Ukraine used US and UK long-range missiles on Russia.

The unconfirmed reports of the launch are “deeply concerning,” UK Prime Minister Keir Starmer’s spokesman, Dave Pares, told reporters at a regular briefing on Thursday. “If true, clearly this would be another example of grave, reckless and escalatory behavior from Russia and only serves to strengthen our resolve.”

Ukraine is waiting for experts to confirm the type of missile that was used, the country’s Foreign Ministry said on Thursday. Kyiv will ask its Western partners for air defense systems capable of intercepting ICBMs, the ministry’s spokesman said.

One of the systems Ukraine could ask for is the Terminal High Altitude Area Defense (THAAD) system produced by Lockheed Martin Corp, the spokesman said.

Since the start of the war, Ukraine has persuaded its western allies to provide the country other advanced air-defense systems, including the US-made Patriot batteries, despite initial hesitation on the part of its allies.

Meanwhile, President Vladimir Putin has lowered the threshold for the use of Moscow’s nuclear arsenal as President Joe Biden reversed course and allowed Ukraine to use US-supplied ATACMS missiles to strike Russia. Ukraine also used UK-made Storm Shadow missiles against Russian targets.

“It’s a very dangerous position that the outgoing administration is taking,” Peskov said of the US decision, according to Tass. “There is a new escalation happening.”

Members of President-elect Donald Trump’s circle have taken a similar stance, criticizing the Biden administration’s approach as leading to a spiral of escalating attacks.

An ICBM would be an expensive way to cause damage. The cost of the US Air Force’s new Sentinel intercontinental ballistic missile, developed to replace the 1970s-era Minuteman, has risen to as much as $162 million apiece, Bloomberg News reported earlier this year.

“This is a very powerful message from Putin,” said Ruslan Pukhov, head of the Moscow-based Centre for Analysis of Strategies and Technologies. “It’s a very calculated move as it does not require retaliation by the US.”

An industrial facility was damaged in Dnipro, according to regional governor Serhiy Lysak, while other reports said that a rehabilitation center for veterans was damaged.

Explosions were heard in the central city of Kryvyi Rih after a second nationwide alert was announced due to the threat of a new ballistic missile attack, city mayor Oleksandr Vilkul said on Telegram. There was no information on casualties or damage.

The embassies of the US and some European Union countries in Kyiv temporarily closed on Wednesday in anticipation of a major retaliatory missile strike by Russia.

Six of seven Kh-101 cruise missiles were downed during the attack, Ukraine’s Air Force command said on Telegram. They didn’t provide additional information on the ICBM or the launch of a Kinzhal missile, another type of high-speed projectile that was used the attack, only saying they resulted in no “significant consequences,” according to the statement.

Half of the power consumers in the Dnipropetrovsk region are without electricity due to supply cuts after the attack, Serhii Kovalenko, a manager at Yasno distribution company said on Facebook.

Some of Ukraine’s dollar bonds gained slightly. Despite the escalating conflict, the sovereign notes issued by the government in Kyiv have been boosted recently by investor bets that Trump’s return to the White House will bring steps toward a truce between Ukraine and Russia.