It seems as though the Russians have been targeting the BTC pipeline and might have invaded Abkhazia as well. So far they've missed the pipeline, which doesn't say much for the quality of their equipment, but it's an odd move.
The point of the pipeline is to connect with the long discussed Nabucco pipeline to get gas from the Caspian into Europe without transiting Russia. EU decision making being what it is means that this plan has gone nowhere for a long time and hasn't made any progress recently.
Why do the Russians feel the need to destroy the pipeline so dramatically when previously they've been quite happy to sit back and watch Europeans destroy its prospects by themselves?
Also interesting is the clear conflict going on in the Russian leadership. Following much bickering last week between Medvedev and Putin, it seems like Putin has won. Foreign affairs and defence are both under presidential jurisdiction, yet it's Putin flying down to North Ossetia to manage the crisis.
