Ironically, the clip is from 2013 and shows a Norwegian ship, not a Russian vessel.
WATCH VIDEO (2 min)
According to Snopes, the footage was filmed as the Norwegian navy fired on one of its own ships to test its new missile. The recently-decommissioned naval ship KNM Trondheim was used as target for testing Norway’s Naval Strike Missile and the video shows it exploding into a massive fireball on being hit.
WATCH THE CLIP FROM 2013 - Norwegian Navy Test Missile Strike
Norwegian Navy Test Missile Strike - commentary:
This is the dramatic moment a ship is blown up to demonstrate a powerful new missile. The Norwegian armed forces took a decommissioned frigate out into the sea for a game of target practice. They then fired the new 'Joint Strike Missile' at the vessel with pinpoint accuracy, causing a huge explosion and major damage to the vessel.
Sources:
Moneycontrol.com
The Dive on Youtube
The original video from 2013