The Luga position was gradually enveloped as Reinhardt enlarged his Kingisepp bridgehead in the west and other German forces captured Staraya Russa and Novgorod in the east. The Soviets briefly managed to divert German attention away from the main battleground by launching their own bold counterattack at Staraya Russa, which encircled X Armeekorps on 16 August and forced Höpner to dispatch von Manstein to rescue the trapped German infantry. Meanwhile, Reinhardt’s panzers finally crushed Soviet infantry around Kingisepp then pushed eastward toward Moloskovitsy, where there was a head-on clash between the 1.Panzer-Division and General-major Viktor I. Baranov’s 1st Tank Division on 15 August. Baranov was one of the most experienced senior Soviet tank leaders, having commanded a tank battalion in the Spanish Civil War and then a tank brigade in the Russo-Finnish War, where he was awarded the Hero of the Soviet Union (HSU) for his role in breaking through the Mannerheim Line. However, the Battle of Moloskovitsy went badly for the Soviet tankers, who lost fifty-two of sixty-five tanks, including six KV, four T-28, thirty-two BT-7, six T-50 and four T-26, and the division was forced to retreat to Krasnogvardeysk. Baranov claimed that his tankers inflicted the loss of 103 tanks and forty-one antitank guns upon Reinhardt’s corps, but the Germans were not seriously damaged. Once in Krasnogvardeysk, which was a strongly fortified position blocking access to Leningrad, the 1st Tank Division received additional new-built tanks and trained reservists to replace its losses. The division was reorganized into a three-battalion armoured group with a total of fifty-nine tanks. Baranov put the thirty-four-year-old Kapitan Iosif B. Spiller in command of his 1st Tank Battalion, which had twenty newly-built KV tanks. Spiller was another very experienced Soviet tanker, with prior combat experience against both the Japanese and the Finns. Contrary to the mass of English-language, German-influenced historiography which often depicts Soviet tankers as untrained and unskilled buffoons, the Red Army did in fact possess men who were every bit as experienced and capable as their opponents.
After the debacle at Moloskovitsy, Baranov decided to avoid large-scale battles with Höpner’s panzers, since Red Army tank units were not yet ready to employ combined arms warfare. Instead, Baranov opted to use his tanks in platoon-size ambushes to disrupt and delay the German advance toward Leningrad. It took Reinhardt’s panzers three days to advance 30km on the road from Kingisepp to the outskirts of Krasnogvardeysk, being engaged daily by Baranov’s tankers employing ‘shoot ‘n scoot’ ambush tactics. Höpner transferred the 8.Panzer-Division, recovered after its defeat at Soltsy, to Reinhardt’s corps, where it was made the vanguard on 18 August. Spiller was tasked with defending the outskirts of Krasnogvardeysk and he deployed a platoon of five KV-1 tanks under Leytenant Zinoviy G. Kolobanov just west of the city, along the route that 8.Panzer-Division was approaching. On the morning of 19 August, Kolobanov’s KV-1s, which were the