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Russia has accused Britain of being behind Ukraine's remarkable 'mini-invasion' that has stunned Vladimir Putin.
Thousands of Ukrainian soldiers charged across the Russian border this week for the first time since the conflict began. Since then, these troops have reinforced their positions, suggesting Ukraine intends to hold the territory it has seized.
The move – described last night by a former UK intelligence officer as a 'masterstroke' – could prove a game-changer in future peace talks.
On state television Putin described the Ukrainian incursion into Russian territory, some 320 miles from Moscow, as a 'large scale provocation'.
In an apparent bid to deflect blame, a senior Russian politician last night accused Britain of instigating and taking part in the operation.
Adalbi Shkhagoshev, a member of the State Duma Committee told Russian media outlets: 'Britain participated in all such sorties. English was heard.'
The Kursk region, where the incursion took place, is critical for Russian gas supplies – so Moscow's highly lucrative exports of natural resources could be compromised.
Russia has accused Britain of being behind Ukraine's remarkable 'mini-invasion' that has stunned Vladimir Putin (pictured)
A graphic detailing Ukraine's 'mini-invasion' of Russia. Unverified images on social media suggested Russian conscripts surrendered near the town of Sudzha
A convoy of Ukrainian military equipment including tanks, armoured personnel carriers, a UR-77 mine-clearing vehicle, and other army machinery enters Russia
If Ukraine can hold the ground, it could be used as a bargaining chip to get back Russian-occupied areas of eastern Ukraine.
Last night, Putin faced a dilemma – accept such a strategically damaging and embarrassing loss of territory, or pull together a force capable of dislodging the Ukrainian forces.
The second option would require thousands of Russian soldiers to be withdrawn from the 700-mile frontline in eastern Ukraine, which would inevitably weaken these positions.
Last night, former British military intelligence officer Philip Ingram said: 'The mini-invasion targeted an area where Russian defences are weak. Ukraine has embarrassed Putin and the Russian military.
'They've brought the war to ordinary Russians and set the conditions for negotiations.
'It is too early to tell Ukraine's ultimate objectives, but on the surface it could be a masterstroke if they can continue the advance and hold off Russian counterattacks.'
Russia's losses include at least two Ka-52 helicopters, several tanks, and other military vehicles
Ukraine's objectives have not been spelled out but the Russians fear an aim could be to reach Kursk Nuclear Power Plant, a major strategic asset.
Kremlin chiefs were last night holding crisis meetings with officials in Kursk about how to respond.
Unverified images on social media suggested Russian conscripts surrendered near the town of Sudzha. Meanwhile, thousands of civilians have also been evacuated.
The advance began on Tuesday and late yesterday, reports suggested Ukrainian forces were up to 12 miles inside Russia. Heavy fighting was continuing.
A senior adviser to Ukrainian president Volodymyr Zelensky, Mykhailo Podolyak, said: 'Russia has consistently believed legal norms do not apply to it, thus it can attack neighbouring countries with impunity.
'But war is war, with its own rules, where the aggressor inevitably reaps corresponding outcomes.
'The root cause of any escalation, including with Russia's own territory, like Kursk, is solely Russia's unequivocal aggression.'
Previous Ukrainian incursions into Russian territory have been 'hit and run' missions, but this operation involves regular troops with support from artillery, engineers and drones.