Article: Russian Spies, They've Got Mail; Regulations Allow Security Services to Tap Into Systems of Internet Providers

Nail Murzakhanov, an Internet provider in Volgograd, knew he might lose his business license four years ago when he told the Federal Security Service, Russia's domestic intelligence agency, that he would not give it access to the e-mail traffic of his 1,500 subscribers.

When the Communications Ministry suspended his license for failure to cooperate with the intelligence agency, known as the FSB, Murzakhanov filed suit.

Surprisingly, in August 2000, he got his license back. "In the end, I was left in peace," he said in a phone call from an office filled with brightly colored computer games.

The standoff was surprising not so much because Murzakhanov won, but because it occurred at all. ...

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