In 1797, Emperor Paul I instituted a large scale reform of the Russian army and government that had important implications for Russian heraldry and military regalia. Among these changes was the institution of new types of banners for military regiments. Every Life-Guards' Regiment received one "White" and several "Color" banners of new design. The Russian/Maltese monogram was added and the image of the Imperial eagle was radically changed to closely resemble that of the Prussian Army.
It is likely this banner belonged to one of the three Life-Guards' Regiments in existence during the reign of Paul I: the Preobrazhensky, Semyonovsky, or Izmailovsky. However, since all Life-Guards' Regiments received the same type of banner, differentiated only by the colors of their poles, it is impossible to say which regiment the offered lot may have been from. Prior to Paul I's accession to the throne, each new Russian monarch would often discard the army's existing regalia in order to substitute designs pleasing to the new ruler, whereas Paul I declared that all flags and banners were to remain in service indefinitely. Therefore, it is possible that the offered lot was in use after Paul's assassination in 1801, and perhaps even during battles of the Napoleonic Wars of 1805-1814.
On this design, see: A.V. Viskovatov, Istoricheskoe Opisanie Odezhdy i Vooruzheniia Rossiiskikh Voisk, vol. 9, St. Petersburg, 1841-1862, ill. 1257 and V.V. Zvegintsov, Znamena i Shtandarty Russkoi Armii, Paris, 1964, p. 25.