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A Russian spy at the British embassy in Berlin was caught by a sting operation, the OId Bailey has heard.

Briton David Ballantyne Smith, 58, was working as a security guard when he passed secret information to Russian authorities.

The court heard how two fake Russian operatives working undercover helped lead to his arrest in August 2021.

Prosecutors claim Smith held strong anti-UK views and was paid for information.

Smith pleaded guilty to eight charges last year and has returned to court for legal argument about his motivation.

He claims he was not paid and was motivated by an employment grievance while suffering mental health issues.

The Old Bailey heard how one undercover operative posed as a "walk-in" Russian informant called "Dmitry" when he was escorted into the British embassy by Smith on 5 August 2021.

Afterwards, Smith was seen on CCTV recording the earlier footage of Dmitry.

"The prosecution allege he... knows the potential significance of the Dmitry incident because he has taken the recordings with a view to passing that material on," Alison Morgan KC told the court.

A second undercover operative met him in the street and claimed to be a Russian intelligence officer called "Irina".

"Irina was deployed to play the role of the GRU [Russian spy agency] officer and to see whether someone - Dmitry - was providing information to the UK that could be damaging to Russia," said Ms Morgan.

Smith was recorded covertly and appeared cautious, telling Irina he needed to speak to "someone" first.

The undercover sting was prompted by a letter Smith sent in November 2020 to a military staff member at the Russian Embassy in Berlin.

Prosecutors say Smith received money in exchange for information and favoured Russia and its leadership.

They say there were unaccounted-for funds, including 800 euro (£700) in cash found at his home in Potsdam.

Smith has denied leaking secrets to Russia for money and claimed he only intended to "inconvenience and embarrass" the embassy, where he had worked since 2016.

Prosecutors say his deliberate engagement with Russian authorities by providing them with confidential and sensitive information showed intent to harm British interests.

Items seized from his flat included travel documents and sheets of blank embassy headed paper.

Photographs taken at that address showed a Russian Federation flag, a Soviet military hat, a Communist toy Lada car and a Russian cuddly toy Rottweiler dog wearing a military hat.

A cartoon seized from his work locker showed Russian President Vladimir Putin in military attire holding the head of former German chancellor Angela Merkel.

Smith, who is originally from Scotland, was extradited on 6 April last year and then arrested at Heathrow for offences under the Official Secrets Act.

Last November, Smith pleaded guilty to eight charges under the Official Secrets Act by committing an act prejudicial to the safety or interests of the state.

Smith is due to be sentenced at the Old Bailey on Friday.