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After the main military offensive of the Second Chechen War ended and the separatists changed tactics to guerilla warfare, overall command of the federal forces in Chechnya was transferred from the military to the FSB in January 2001.
While the army lacked technical means of tracking the guerrilla groups, the FSB suffered from insufficient human intelligence due to its inability to build networks of agents and informants.
In 2003, the agency's responsibilities were considered considerably widened.
The Border Guard Service of Russia, with its staff of 210,000, was integrated to the FSB via a decree was signed on 11 March 2003. In addition, The Federal Agency of Government Communication and Information (FAPSI) was abolished and the FSB was granted a major part of its functions, while other parts went to the Ministry of Defense.
The FSB is engaged mostly in domestic affairs, while espionage duties are responsibility of the Russian Foreign Intelligence Service.
However, the FSB also includes the FAPSI agency, which conducts electronic surveillance abroad.
Some analysts considered it to be an attempt to undermine FSB Director Nikolay Patrushev's influence, as it was Patrushev's team from the Karelian KGB Directorate of the late 1980s – early 1990s that had suffered most and he had been on vacations during the event.
Starting from the Moscow theater hostage crisis in 2002, Russia was faced with increased levels of Islamist terrorism.
Under Russian federal law, the FSB is a military service just like the armed forces, the MVD, the FSO, the SVR, the FSKN, Main Directorate for Drugs Control and EMERCOM's civil defence, but its commissioned officers do not usually wear military uniforms.The FSB is mainly responsible for internal security of the Russian state, counterintelligence, and the fight against organized crime, terrorism, and drug smuggling.