Like the script from some bad 60's spy movie, the Russian government announced its intention to abandon the ten year agreement with the Peace Corps amid allegations of "suspicious activities" by the head of Russia's Federal Security Bureau (FSB) previously known as the KGB.
One problem was that since Russia's refusal in August to renew visas for almost half the Peace Corps Volunteers already serving in Russia, it appeared the Peace Corps had been hoping against hope to salvage a dying program. Peace Corps either couldn't or wasn't allowed to deal with the reality that the Russian government really didn't want the Peace Corps any longer and the matter escalated from visa problems in August to KGB spy allegations in mid-December and finally to the Russian announcement December 27 of the end of Peace Corps Programs in Russia.
Peace Corps disappointed with Russian decision
Exclusive: Peace Corps disappointed with Russian decision 27 December 2002
Moscow to abandon Peace Corps agreement
New York Times: Russia bars future U.S. Peace Corps workers 28 December 2002
Pravda: Moscow informs Washington of intention to abandon Peace Corps agreement 27 December 2002
Associated Press: Russia Rejects U.S. Peace Corps 27 December 2002
What RPCVs say about the situation
Exclusive: Read the advice RPCVs gave the Peace Corps in August 18 August 2002
US Ready to Remove Peace Corps From Russia
U.S. Ready to Remove Peace Corps From Russia, Citing Disputes 17 December 2002
Russian Spy claims "groundless" says US
Russian claims about Peace Corps volunteers "groundless" says US Embassy 16 December 2002
KGB accuses PCVs of "suspicious activities"
Update: KGB Chief says PCVs involved in suspicious activities 15 December 2002
KGB chief accuses Peace Corps workers of spying in Russia 15 December 2002
Russia cooling to outsiders
Russia refuses visas to religious workers 2 November 2002
The Case for the Peace Corps
Radio Free Europe makes the Case for the Peace Corps in Russia 18 August 2002
Secretary of State Powell makes no progress on Peace Corps visas with Russian foreign minister 14 August 2002
Russia refuses visas for Peace Corps Volunteers
Peace Corps Moscow chief denies allegations of non-professionalism 13 August 2002
Russia Ousting Dozens Of Peace Corps Volunteers 12 August 2002