Estonia says a security service officer has been abducted by unknown gunmen and taken across the border to Russia.
But Russia says the man is being detained on its territory and is suspected of being a spy.
The incident comes at a time of heightened tensions between the two countries.
Only two days ago, US President Barack Obama visited Estonia and gave the NATO member assurances of protection from any Russian threat.
The Estonian Internal Security Service said the officer was investigating cross-border crime when he was abducted at gunpoint on Estonian territory near the Luhamaa border checkpoint.
The Russian Federal Security Service said the Estonian was detained in the Pskov region of Russia.
He was carrying a handgun with cartridges and special equipment for concealed audio recording and materials that indicated an "intelligence mission," the agency said in a statement.
Estonia's security service director Arnold Sinisalu told broadcaster ERR the officer was Eston Kohver - a decorated police officer and an expert in the field of terrorism and extremist action prevention.
The Estonian Foreign Ministry said it had summoned Russia's ambassador in connection with the incident, which it called "disturbing".
Foreign Minister Urmas Paet said Estonia expects "to receive all manner of co-operation necessary from Russia in solving this case and bringing the Estonian citizen back to Estonia".
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