Ukraine accused Russia on Monday (local time) of looting empty homes in the southern city of Kherson and occupying them with troops in civilian clothes to prepare for street fighting in what both sides predict will be one of the war's most important battles.

In recent days Russia has ordered civilians out of Kherson in anticipation of a Ukrainian assault to recapture the city, the only regional capital Moscow has seized since its invasion in February.

Kherson, with a pre-war population of nearly 300,000, has been left cold and dark after power and water were cut to the surrounding area over the past 48 hours, both sides said.

Russian-installed officials blamed Ukrainian "sabotage" and said they were working to restore electricity. Ukrainian officials said the Russians had dismantled 1.5 km of power lines, and electricity probably would not return until Ukrainian forces recapture the area.

Kyiv has described the evacuation of the area as a forced deportation, a war crime. Moscow says it is sending residents away for safety.

The city lies in the only pocket of Russian-held territory on the west bank of the Dnipro River that bisects Ukraine. Recapturing it has been the main focus of Ukraine's counter-offensive in the south which accelerated since the start of October.

The situation inside Kherson could not be independently confirmed. Ukrainian forces on the nearby frontline have told Reuters in recent days they expect a bitter fight against Russian troops determined to exact a blood price before being forced out.

"While Kherson residents are being forcibly deported from their homes, talking about 'evacuation', ru-military and FSB officers are doing what they love most — robbing their houses," Ukrainian presidential advisor Mykhailo Podolyak tweeted on Monday.

Ukraine's military said in an overnight update that Russian forces, "disguised in civilian clothes, occupy the premises of civilians and strengthen positions inside for conducting street battles."

Reuters was seeking comment from Russian authorities on the Ukrainian allegations. Moscow denies abusing civilians.

Russia sent thousands of troops to reinforce the Kherson area but has hinted in recent days it could pull out. The deputy head of the Russian-installed administration, Kirill Stremousov, said last week Russia was likely to withdraw across the river, although there was silence from his higher-ups in Moscow.

'THEY CALL PEOPLE MEAT'

Russia lost all of the territory it captured in northern Ukraine in the weeks after the invasion, and in recent months has faced major setbacks in the east and south.

President Vladimir Putin has responded to the losses by calling up hundreds of thousands of reservists and announcing the annexation of occupied lands. He said on Monday 50,000 newly called up reservists were already fighting in combat units.

But as more and more troops get sent to the front and casualties mount with few fresh signs of gains, there has been increasing disquiet within Russia over the conduct of the war.

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Russia's defence ministry took the rare step on Monday of denying that an elite unit had suffered catastrophic losses in a pointless assault, after Russian military bloggers posted an open letter from surviving members of the Pacific Fleet's 155th marine brigade.

In the letter, addressed to Oleg Kozhemyako, governor of the unit's Pacific coast base home region, the marines said that over just four days their unit had lost 300 men killed, wounded or missing, and half of their equipment.

They blamed generals seeking medals and bonuses, who "call people meat".

In a video message, Kozhemyako acknowledged the letter but said it exaggerated the losses: "We contacted the commanders. Yes there are losses, there's heavy fighting, but they are far from what is written in this appeal," the governor said.

The Russian Defence Ministry said: "Due to the competent actions of the unit commanders" only one percent of the marines had been killed and seven percent wounded in the operation, many of whom had already returned to duty.

NATIONALISATIONS

In the biggest restructuring of Ukraine's economy since the war began, Kyiv announced the state takeover on Monday of Ukraine's biggest oil refiner and producer, and companies that make trucks, electric transformers and aircraft engines.

Authorities presented it as a wartime emergency measure. The companies are associated with billionaires once known for wielding political power in Kyiv, and the moves appear in line with a long-standing aim of President Volodymyr Zelenskiy to rein in "oligarchs".

Elsewhere in Ukraine, Monday morning passed without a major volley of Russian missiles, a rare quiet start to the working week after Mondays became synonymous across Ukraine with renewed Russian air strikes over the past month.

Russia has rained missiles down on Ukrainian civilian infrastructure targets, acknowledging its aim to destroy Ukraine's energy system, with intensive strikes often coming during morning rush hour on Mondays since Oct. 10.

Ukraine's grid operator told consumers to brace for more blackouts in Kyiv and other regions on Monday as it seeks to reduce the strain on damaged energy infrastructure. It scheduled shutdowns in Kyiv and the regions of Chernihiv, Cherkasy, Zhytomyr, Sumy, Kharkiv and Poltava.

Zelenskiy said in his nightly video address that more than 4.5 million consumers were without power.

Both the White House and the Kremlin declined to comment on a report in the Wall Street Journal that US National Security Advisor Jake Sullivan had held talks with aides to Putin, aiming to reduce the risk of escalation.