The ongoing incursion in Ukraine has led to a heated exchange between Moscow and Kyiv over a nuclear plant fire.

• Officials from both Ukraine and Russia accused each other of causing the fire that occurred at the Zaporizhzhia Nuclear Power Plant in southern Ukraine on Sunday.
• Russian forces are responsible for the fire at the plant, which has been under Ukrainian control since March 2022, according to Ukrainian officials.
• The governor of Zaporizhzhia, who was appointed by Russia, claimed that Ukrainian artillery fire caused the fire at the nuclear power plant, which is Europe's largest.

The ongoing incursion into Russian border territory has resulted in a large fire at the Zaporizhzhia Nuclear Power Plant in southern Ukraine, with both Moscow and Kyiv blaming each other for the incident on Sunday.

Russian forces were accused by Ukrainian officials of starting a fire at the occupied plant in Zaporizhzhia, while the Kremlin-appointed governor of the region claimed it was Ukrainian shelling that caused the blaze.

The nuclear power plant, which is frequently targeted by both Ukraine and Russia, has been a source of tension between the two countries, with each accusing the other of launching dangerous drone and shelling attacks on or near the plant, putting the facility's safety at risk and increasing the possibility of a nuclear disaster.

In the recent escalation of tensions, Ukraine's President Volodymyr Zelenskyy claimed that Russian troops were responsible for igniting a fire at the ZNPP in Enerhodar, yet stated that radiation levels in the area were within normal limits.

The situation cannot be normal as long as Russian terrorists control the nuclear power plant, according to Zelenskyy. Since the first day of the seizure of Zaporizhzhya NPP, Russia has been using it to blackmail Ukraine, Europe, and the world.

The governor of Zaporizhzhia, who was appointed by Russia, refuted the claim, asserting in a Google-translated social media post that Ukrainian artillery fire was responsible for the fire at the plant, which is Europe's largest nuclear power station.

An unmanned aerial vehicle (UAV) struck one of the cooling towers of a plant and caught fire, according to Yevgeny Balitsky. Emergency services in the region were able to localize and extinguish the flames.

According to Balitsky, the Ukrainian government, backed by NATO overseers, is intentionally targeting the entire north of the Zaporizhia region with UAVs, barrel artillery, and mortar artillery. Despite this, efforts are being made to limit the impact of these attacks.

He stated that he had met with Russia's President Vladimir Putin, who had "obviously shown a growing concern for the protection of strategic infrastructure facilities, including nuclear power plants."

Neither party provided evidence to support their claims, and CNBC could not verify their reports.

On Sunday evening, the International Atomic Energy Agency (IAEA) announced that its inspectors at the Zaporizhzhia site had observed "strong dark smoke" emanating from the northern part of the plant after a series of explosions occurred throughout the evening.

The IAEA stated that, despite an alleged drone attack on one of the cooling towers on Sunday, there has been no effect on nuclear safety.

Tempers flaring

The conflict between Moscow and Kyiv has escalated as Ukrainian troops invaded the Russian border region of Kursk.

Last Tuesday, a border raid occurred and caught Moscow off guard. Russia's defense ministry later revised their initial estimates, stating that approximately 1,000 troops, along with numerous tanks and armored vehicles, participated in the incursion.

An unnamed senior Ukrainian security official informed AFP that "thousands" of troops were involved in the operation, aimed at "stretching" and "destabilizing" Russia. However, CNBC was unable to verify the report.

Over 3,000 individuals have been evacuated from the region due to ongoing Ukrainian drone and missile attacks, as stated by acting regional Governor Alexei Smirnov on Telegram Monday. He added that the threat of UAV attacks persisted overnight, prompting Russian "air defense forces and assets to be put on alert to repel a possible attack."

Russia's summer offensive in eastern Ukraine has been disrupted by Kyiv's incursion, prompting Moscow to redeploy forces to Kursk.

According to the Institute for the Study of War think tank, Russian defense officials have stated that their factions have stopped Ukrainian advances into Kursk, while geolocated footage and Russian military bloggers suggest that Ukrainian troops are present in areas up to 35 kilometers inside Russia.

The ISW noted that Ukraine's operation in Kursk has given Ukrainian forces temporary control of a portion of the frontline.

Since November 2023, Russia has been in possession of a theater-wide initiative, which has enabled them to determine the location, time, scale, and requirements of fighting in Ukraine, forcing Ukraine to expend materiel and manpower in reactive defensive operations, according to the ISW.

"The Ukrainian operation in Kursk Oblast has prompted the Kremlin and Russian military command to respond and relocate forces and resources to the area where Ukrainian troops have launched attacks."

The ISW believes that Putin and the Russian military command may have misjudged Ukraine's ability to challenge their initiative.

Recently, Ukraine has been more reserved about its latest operation in Russian border territory. Several border regions, including Kursk, have experienced smaller and shorter incursions, as well as more frequent Ukrainian drone attacks and shelling.

Russia and Ukraine say they don't target civilian areas.

President Zelenskyy acknowledged the raid on Sunday but characterized it as Ukrainian actions to push the war into the aggressor's territory.

Zelenskyy expressed gratitude to Ukrainian forces for ensuring justice and bringing pressure on the aggressor, proving that Ukraine is capable of doing so.