I've always heard that this picture was from 1999, start of the Second Chechen War.
Picture was taken from group dedicated to 1st Chechen War :)
Hmm, I've also read that it was from Dagestan in 99. We can never be sure can we? =P
Yes, this is Dagestan 1999.
Yup, its Dagestan. There is also a video of this group . "Спецназ ГРУ, Дагестан 1999". http://www.youtube.com/watch?v=BeWO41i4RRY&feature=related