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In the southeast, tensions rise with the rich Khazar kingdom which controls the important Volga trade route.
http://qindex.info/i.php?x=6594
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In 882, his heir Oleg leaves with an army and conquers Smolensk and Kiev. He then founds the Kievan Rus' of which he becomes prince. The new state includes mainly Slavic and Finnish tribes.
http://qindex.info/i.php?x=6561
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