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A year after former Yukos CEO Mikhail Khodorkovsky was arrested on fraud charges, Baikal Finance Group — a mysterious company with a share capital of only 10,000 rubles ($330) — acquired Yukos’ largest subsidiary, Yuganskneftegaz, for $9.3 billion in an “auction” consisting of only one bidder. After Yuganskneftegaz was sold four days later to state-controlled Rosneft, Andrei Illarionov, economic adviser to then-President Vladimir Putin, called the state expropriation of Yukos “the Biggest Scam of the Year” in his annual year-end list of Russia’s worst events. When Illarionov announced his 2009 list in late December, he should have added another award and given it to Putin: “the Best PR Project of the Decade.”

The Yukos...