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Nevertheless, abandoning this ship due to fire is a major blow to the fleet even if salvageable.
I don't see escalation unless you mean playing the nuclear card which I also do not see yet, Russia is already fully engaged with what is available for combat in Ukraine. It still has to maintain a reserve to protect its borders with Finland, Estonia, Poland, Georgia (other than occupied areas), Lithuania, Latvia, Kazakhstan, Azerbaijan, the big one, Communist China and the crazy one, North Korea.
China views itself as a world power and loping off a huge chunk of Russia's eastern territory and being 55 miles across the Bering Strait, 3 miles if you count the Diomedes, from Alaska would pretty much put them close to a tie for 1st place.
USNI: https://news.usni.org/2022/04/13/russian-navy-confirms-severe-damage-to-black-sea-cruiser-moskva-crew-abandoned-ship
Edt: Add USNI news site.
Link: https://twitter.com/RALee85/status/1514398732611211271
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That is definitely a big loss, even if it was an outdated ship.