After the fall of the Soviet Union, several communist radicals gathered arms and terrorized small cities. During the Allies' war with Yuri, these rebels formed violent gangs and killed civilians at random. Eventually the populace was forced out of their homes, and the terrorists established military installations. The remnants of the Soviet government and the surviving leaders went into hiding, trying to covertly increase their military to prewar levels.

As Yuri saw he was losing the war, he sent a small team of clones to enter the U.S. and capture NORAD. There they found plans for future Allied aircraft, including the F-117, K-2B, and the F-2002. His minions copied these plans and returned them to a hidden Yuri base below the one that was sabotaged on Alcatraz. Immediately Yuri began production of his own aircraft. He took his existing mind-control and chaos technology and created the 'Scythe' Mind Corruptor, an airborne version of the Psychic Tower; and the Chaos Bomber, essentially a Chaos Tank with wings. His gattling weapon systems were improved as well. The Gattling Fist, which can fire tank shells in rapid succession, added to his arsenal of firepower.

As Russia fell to terrorism and destruction, the Soviet military was running low on funding. They desperately worked on industrial improvements to make it more profitable. Next they improved on their industrial plants so the war supplies were extremely cheap. Then the air force needed to be reinstated, as they quickly discovered their Kirov project was failing. New plans for aircraft were drawn, and they created the MiG-17, and MiG-21. Kamov industries produced a transport helicopter for their troops, seeing how the Allied Nighthawk and Cargo transports were so effective. The MiG-29 and MiG-32 were still in testing. The Soviet army also took plans for the British Challenger II, but their factories were sabotaged by rebels of the Terror Troops faction, one of the most powerful terrorist organizations. The British sent spies to infiltrate Terror Troop and Soviet hideouts to steal back their Challenger II plans.

Allied and Soviet leaders soon learned that they were both after the menacing Yuri, and proposed a treaty to collaborate and cooperatively destroy Yuri's army. The meeting place has been discovered, so preparations are already arranged. Yuri must use the remainder of his forces in the North Atlantic to halt the signing of the treaty, sever all diplomatic relations between the Allies and the Soviets, and recapture the European continent before the final push to Russia and the hidden Soviet command center, after which the Allies will shortly fall.