Moscow—When the Soviet Union collapsed, many observers expected its fearsome intelligence apparatus to wither as well. Instead, the post-Soviet era has seen the emergence of an even more influential collection of intelligence organizations that grew out of the two premier Soviet agencies: the KGB, which combined domestic and foreign political intelligence, and the gru, which handled military intelligence. The prominent—even dominant—role of intelligence within contemporary Russia's political system is a sign of the Kremlin's growing ambitions. But it also reflects a profound fear of being outmaneuvered by the West in Russia's traditional sphere of influence, which now comprises 10 more or less independent nations that once belonged to the Soviet Union. Within that vast territory—and in the areas that directly border it—an intense and largely invisible battle for control is being fought every day.

This struggle has put the Kremlin's intelligence agencies in direct competition with Western...

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