This chemical factory was built in the old Soviet era and was purchased on the cheap by Ozwell E. Spencer sometime after the completion of the underground laboratory complex in Raccoon City, making it Umbrella's newest base. The timing of the purchase also coincided with Sergei Vladimir's rapid rise up the ranks of Umbrella. After gaining Spencer's trust and submitting his DNA for use in the Tyrant Program, Sergei was posted back in Russia to run the factory.

Based in the wilderness of the Caucasus region of Russia, the factory was initially not considered one of Umbrella's main production facilities and so quietly went about its business of manufacturing B.O.W.s without incident. However, after the Raccoon City disaster and due to it's location being practically in the middle of nowhere, Spencer reinvested into the factory, expanding its output and creating a network of underground laboratories, warehouses, storage units and B.O.W. testing arenas.

Umbrella's super computer mainframe UMF-013 was relocated to the factory along with the state of the art Red Queen AI. Primary development of the latest Tyrant model codenamed T.A.L.O.S. was alos shifted to this location with work continuing under the personal supervision of Sergei Vladimir.

In essence, with the public spotlight now firmly on Umbrella, this seemed like the perfect place for their bio-weapons program to continue undisturbed. For the next few years, ex-S.T.A.R.S. members, Anti-Umbrella organisations and even notorious traitor Albert Wesker all searched the globe for this last bastion of the faltering company without success.

Many employees of the base were housed at a small, unimportant village located three miles away. This village was also the site of a hidden underground storage facility, one of many that Umbrella had set up around the world to hide and conceal completed biological weapons ready for sale to terrorists and other unstable extremeist regions. This was to generate much-needed income for Umbrella as the on-going court case for the Raccoon City disaster and the total business suspension decree was taking its toll on the corporation financially.

In 2003, bizarre murders began to occur in and around the village, which led to 'The Organisation' beginning to gather intelligence on the area. The reports of a fabled mythical creature slaying the villagers seemed worthy of investigation and the deaths taking place there fitted the profile of possible B.O.W. involvement. The situation was similiar in MO to the strange muders that took place in Raccoon City in the summer of 1998. 'The Organisation' began to wonder if this village perhaps contained one of these hidden Umbrella storage facilities and dispatched Albert Wesker to find out.

When Wesker arrived, his suspicions were confirmed when he found the village in the midst of a T-Virus outbreak. The underground storage facility housed a number of Umbrella's latest Hunter B.O.W.s; the Hunter Deltas. The strange occurances had also attracted the interest of Chris Redfield and Jill Valentine, who at the time had allied themselves with a regional biohazard containment unit working in conjunction with the Russian Government. Their ensuring confrontation with Wesker led to the facility being completely destroyed, preventing Wesker from gathering the research data he required. However, Wesker did not escape empty-handed, for in the village chief's house he discovered documents and schematics of Umbrella's final base; the Caucasus Factory, the one place that had been Umbrella's life source for the last four and a half years.
Armed with this new information and without informing 'The Organisation' of his discovery, Wesker launched a one-man assault on the base, causing a biohazard and using Chris's Anti-B.O.W. squad as a diversion for him to steal all Umbrella's archival data from the UMF-013 before deleting all the hardrives and back-up files, rendering Umbrella now completely useless. After defeating the T.A.L.O.S. biological weapon, the base was captured by Chris and his team.

On the outside, the factory has the appearance of an innocent looking oil refinery. However, the solid rock formations underneath the snow made for an ideal foundation for a network of tunnels and underground research areas. The interior ground level of the base is a collosal warehouse for storage of regular materials. A huge Umbrella symbol ajourns the floor which doubles as a hidden area that decends hundreds of feet underground to the restricted research areas. Locker rooms for employees are followed by a decontamination shower. Numbered rooms in pristine tiled hallways contain all matter of Umbrella secrets and further down one particular room is guarded by a highly sophisticated laser-targeting security system. Further down, an artificial waterway has been created for the Neptune shark B.O.W.s and past that is the furnaces where failed B.O.W.s are disposed of. This level also houses testing sites. A lift to even lower levels leads to more storage areas, the main control room, an armoury, the Red Queen's chamber and the main B.O.W. testing arena where Chris and Jill would battle the T.A.L.O.S.

Because the base is so big, employees are able to get around quicker thanks to an underground mono-rail network.
The Russian Caucasus Facility was officially shut down following Operation T.A.L.O.S. in February 2003.