Rothschild lined to take over at Yukos

The fraud and tax investigations could draw in a tranche of top Yukos executives, and in these circumstances the group would approach the London banker, a company official told Russia's Kommersant newspaper.

Lord Rothschild, 66, has a host of high-profile international corporate, political and banking contacts in keeping with his position as a member of the influential Rothschild banking dynasty.

The obvious successor to Khodorkovsky would be the group's chief financier Platon Lebedev, but he is in jail facing fraud charges.

While refusing to comment on any potential role for him at Yukos, Lord Rothschild defended the oil baron. 'Khodorkovsky is a progressive businessman who is devoted to Russia,' his office was quoted as saying. The spokesman said Lord Rothschild had no business relationship with Menatep, a Khodorkovsky company that owns 61% of Yukos.

Lord Rothschild still heads J Rothschild Capital Management, the fund management business he set up nearly 20 years ago. That business is now part of the larger St James's Place Capital wealth management group chaired by Sir Mark Weinberg, a long-time friend and business associate.

He is also co-founder with former US Secretary of State Henry Kissinger of Khodorkovsky's Yukos-financed Open Russia Foundation, established in December 2001 to develop relations between Russia and the West. In March last year Khodorkovsky appointed former British Foreign Secretary Lord (David) Owen as chairman of Yukos International UK in London.

Lord Rothschild split from his cousin Sir Evelyn de Rothschild, chairman of English investment bank NM Rothschild, to set up his own investment bank J Rothschild Assurance in the 1980s. He still runs it from the basement of a house in St James's.

He quickly made a name for himself, joining forces with the late Sir James Goldsmith and Australia's Kerry Packer for an assault on BAT Industries via Anglo Leasing, one of a number of holdings in financial services companies.

His latest high-profile takeover campaign was a failed attempt to take textiles group Coats Viyella private three years ago.

The Yukos probe is being closely watched in Washington, which has worked hard at developing an energy relationship with Russia.