It took place in the Baltic Sea off the shores of Gotland, Sweden, a country neutral in World War I.

18 June] 1915,[Note 1] a squadron consisting of the armoured cruisers Admiral Makarov, Bayan, Oleg, Bogatyr, Rurik and Novik, under Rear Admiral Mikhail Bakhirev in Oleg left their harbours in order to bombard Klaipėda (Memel).

While sailing through thick fog Rurik and Novik separated from the main group and later acted independently.

19 June] 1915, the Russian squadron spotted and immediately opened fire on Augsburg, Albatross and three torpedo boats.

Karpf commanded Roon and Lübeck, which at the time were heading towards Liepāja (Libau), to return to Gotland.