Baikalfinansgrup later moved its legal address to the head office of Rosneft Oil Company, which is situated on Sofiyskaya Embankment directly opposite the Kremlin.
Yuganskneftegaz was the core production subsidiary of Yukos Oil Company, which was previously run by Russian businessman Mikhail Khodorkovsky.
In early December, the Russian state-controlled gas monopoly Gazprom submitted an application to participate in the auction through its wholly owned subsidiary, Gazpromneft.
On December 15, 2004, Yukos filed for a bankruptcy protection in a Houston court, and obtained a temporary injunction prohibiting Gazprom from participating in the auction.
On February 7, 2006, in response to a question by a Spanish journalist, Russian President Vladimir Putin disclosed that Rosneft had used Baikalfinansgrup as a vehicle to acquire Yuganskneftegaz in order to protect itself against litigation risks.