The vagrants Varlaam and Misail, who are dressed as monks and are begging for alms, and their companion Grigoriy, who is in secular garb, arrive and enter. After exchanging greetings, Varlaam requests some wine. When the Hostess returns with a bottle, he drinks and launches into a ferocious song ("So it was in the city of Kazan") of Ivan the Terrible's siege of Kazan. The two monks quickly become tipsy, and soon begin to doze. Grigoriy quietly asks the Hostess for directions to the Lithuanian border. The Hostess mentions that the police are watching the ordinary roads, but they are wasting their time, because there is an alternative, less well-known way to get to the border. Policemen appear in search of a fugitive heretic monk (Grigoriy) who has run off from the Chudov Monastery declaring that he will become Tsar in Moscow. Noticing Varlaam's suspicious appearance and behavior, the lead policeman thinks he has found his man. He cannot read the ukaz (edict) he is carrying, however, so Grigoriy volunteers to read it. He does so, but, eyeing Varlaam carefully, he substitutes Varlaam's description for his own. The policemen quickly seize Varlaam, who protests his innocence and asks to read the ukaz. Varlaam is only barely literate, but he manages to haltingly read the description of the suspect, which of course matches Grigoriy. Grigoriy brandishes a dagger, and leaps out of the window. The men set off in pursuit.