Russia has the capacity to continue the war in Ukraine and expand its military capabilities directed towards the West, Lithuania’s intelligence services said on Thursday. “Russia is allocating enormous resources to the war in Ukraine and shows no inclination to de-escalate the situation, even though it is failing to achieve its operational objectives,” the intelligence services wrote in an annual report. “At the same time, Russia is preparing for a long-term confrontation with NATO and has embarked on a major reform of its armed forces,” it added. According to the report, Russia will need up t…