As soon as the Truce of Plussa expired early in 1590, a large Russian army led by Godunov and his sickly brother-in-law, Feodor I of Russia, marched from Moscow towards Novgorod.

On 25 February, the local Swedish governor, Karl Henriksson (Horn) [sv], was compelled to sign an armistice, which obliged Sweden to surrender the territories won by the Treaty of Plussa — namely Jama, Koporye, and Ivangorod.

This peace settlement displeased John III of Sweden, who sent a fleet to take hold of Ivangorod, but this attempt to besiege the fortress was checked by a Russian castellan.

Matters then remained quiet until summer 1591, when the Swedes struck against Gdov, capturing a local governor, Prince Vladimir Dolgorukov.

A raiding party allegedly led by Finnish peasant chief Pekka Vesainen, destroyed the Pechenga Monastery on 25 December 1589, killing 50 monks and 65 lay brothers.