Anatoly sobchak puttin on the ritz

The Millennium hotel is an unusual spot for a murder. It overlooks Grosvenor Square, and is practically next door to the heavily guarded US embassy, where, it is rumoured, the CIA has its station on the fourth floor. A statue of Franklin D Roosevelt – wearing a large cape and holding a stick – dominates the north side of the square. In 2011 another statue would appear: that of the late US president Ronald Reagan. An inscription hails Reagan’s contribution to world history and his “determined intervention to end the cold war”. A friendly tribute from Mikhail Gorbachev reads: “With President Reagan, we travelled the world from confrontation to cooperation.”

The quotes would seem mordantly ironic in the light of events that took place just around the corner, and amid Vladimir Putin’s apparent attempt to turn the clock back to 1982, when the former KGB boss Yuri Andropov – the secret policeman’s secret policeman – was in charge of a doomed empire known as the Soviet Union. Next to the inscriptions is a sandy-coloured chunk of masonry. It is a piece of the Berlin Wall, retrieved from the east side. Reagan, the monument says, defeated communism. This was an enduring triumph for the west, democratic values, and for free societies everywhere.

Five hundred metres away is Grosvenor Street. It was here, in mid-October 2006, that two Russian assassins had tried to murder someone, unsuccessfully. The hitmen were Andrei Lugovoi and Dmitry Kovtun. Their target was Alexander Litvinenko, a former officer in Russia’s FSB spy agency. Litvinenko had fled Moscow in 2000. In exile in Britain he had become Putin’s most ebullient and needling critic. He was a writer and journalist. And – from 2003 onwards – a British agent, employed by MI6 as an expert on Russian organised crime.

Latterly, Litvinenko had been supplying Her Majesty’s spooks and their Spanish counterparts with hair-raising information about the Russian mafia in S

Moscow, summer 1991. Mikhail Gorbachev is in power. Official relations with the west have softened, but the KGB still assumes all western embassy workers are spooks. The KGB agents assigned to them are easy to spot. They have a method. Sometimes they pursue targets on foot, sometimes in cars. The officers charged with keeping tabs on western diplomats are never subtle.

One of their specialities is breaking into Moscow apartments. The owners are always away, of course. The KGB leave a series of clues – stolen shoes, women’s tights knotted together, cigarette butts stomped out and left demonstratively on the floor. Or a surprise turd in the toilet, waiting in grim ambush. The message, crudely put, is this: we are the masters here! We can do what the fuck we please!

Back then, the KGB kept watch on all foreigners, especially American and British ones. The UK mission in Moscow was under close observation. The British embassy was a magnificent mansion built in the 1890s by a rich sugar merchant, on the south bank of the Moskva river. It looked directly across to the Kremlin. The view was dreamy: a grand palace, golden church domes and medieval spires topped with revolutionary red stars.

One of those the KGB routinely surveilled was a 27-year-old diplomat, newly married to his wife, Laura, on his first foreign posting, and working as a second secretary in the chancery division. In this case, their suspicions were right.

The “diplomat” was a British intelligence officer. His workplace was a grand affair: chandeliers, mahogany-panelled reception rooms, gilt-framed portraits of the Queen and other royals hanging from the walls. His desk was in the embassy library, surrounded by ancient books. The young officer’s true employer was an invisible entity back in London – SIS, the Secret Intelligence Service, commonly known as MI6.

His name was Christopher Steele. Years later, he would be commissioned to undertake an astonishing secret

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