He was head of the Federal Security Service - an arm of the former KGB.
http://www.biography.com/people/vladimir-putin-9448807#president-of-russia-1st-and-2nd-terms
After Sobchak's defeat in 1996, Putin resigned his post and moved to Moscow. There, in 1998, Putin was appointed deputy head of management under Boris Yeltsin's presidential administration. In that position, he was in charge of the Kremlin's relations with the regional governments.
Shortly afterward, Putin was appointed head of the Federal Security Service, an arm of the former KGB, as well as head of Yeltsin's Security Council. In August 1999, Yeltsin dismissed his prime minister, Sergey Stapashin, along with his cabinet, and promoted Putin in his place. |
