The taking and burning of Kazan was the high-water mark of Pugachev’s revolt. Had he not been defeated there, he might have marched on Moscow, carrying the revolt into the heart of serf-owning Russia. Immediately afterward, the impostor learned about the Russian-Turkish peace treaty and realized that regular troops would now be available to the government, By August, a veteran Russian army under General Vasily Suvorov, released from the Danube campaign, was advancing in his direction. Pugachev’s men, demoralized by defeat and retreat, began to worry about the consequences of their rebellion. In increasing numbers, they began to desert.
Pugachev was now entering an area populated by small landowners possessing few serfs. Attempting to raise a new army, he called on these serfs to rise against their masters, promising liberty to “be forever Cossacks, free from taxes, levies, recruiting, evil landowners, and corrupt judges.” Some serfs slipped away from their owners, but their number was dropping; the revolt was faltering, losing energy and purpose. In turning south, Pugachev was returning to his childhood home, the land of the Don Cossacks. But few impostors can be successful among people with whom they have been raised. “Why does he call himself Tsar Peter?” the Don Cossacks asked. “He is Emelyan Pugachev, the farmer, who deserted his wife Sophia and his children.”
After Pugachev’s sudden reappearance before Kazan, Catherine knew that the government had relaxed too soon. At a council session on July 14, she had declared that Rumyantsev’s victories on the Danube had brought Russia close to peace. And then, on July 21, news of the destruction of Kazan had reached St. Petersburg, two days before Rumyantsev’s son arrived with news of peace with the Turks. That morning as Catherine convened her council, she did not know either about Pugachev’s defeat after his sacking of Kazan or that a peace had been reached with Turkey. “Extremely shaken” by the news from Kazan, she interrupted the council’s discussion and announced that she intended to leave for Moscow immediately to restore confidence. Her councillors were silent until Nikita Panin spoke up, saying that her unexpected arrival might alarm rather than calm the people. It was decided that Panin’s younger brother, General Peter Panin, the most experienced general available, then in retirement near Moscow, would be appointed to assume command against Pugachev.
Catherine approved this choice reluctantly. She recognized Peter Panin’s military abilities, but she disliked him personally. He had often declared that Russia should be ruled by a man; his preference was Grand Duke Paul. Catherine also worried about his reputation as a military martinet and about his unconventional personal behavior: he sometimes appeared in his headquarters wearing a gray satin nightgown and a large French nightcap with pink ribbons. She had been annoyed by the histrionic nature of his abrupt retirement, taken because he felt inadequately rewarded for his successes in the Turkish war. By the fall of 1773, she had authorized surveillance of “the insolent windbag.” Now, facing the need to appoint Peter Panin, she confessed to her new admirer Gregory Potemkin: “Before the whole world, frightened of Pugachev, I commend and elevate above all mortals in the empire a prime big-mouth who insults me personally.” Nevertheless, Catherine the empress took precedence over Catherine the affronted woman, and on July 22, Peter Panin was appointed general in chief. The following day, July 23, news of the peace treaty with Turkey reached St. Petersburg. Catherine was doubly pleased: the territorial gains of the Treaty of Kuchuk Kainardzhi were substantial, and her army would now be free to confront Pugachev.
Peter Panin demanded authority over all military forces assigned to deal with the revolt and over all officials and people in the affected areas. To Potemkin, Catherine continued, “You see, my friend, that Count [Nikita] Panin wants to make his brother the ruler with unlimited powers in the best part of the empire. If I sign this, not only will Prince Volkonsky [the governor-general of Moscow] be offended and made to look silly, but I myself will be seen publicly to be praising a man who is a first class liar and who has personally offended me.”