Soyuzmultfilm was ready to revive their animation studio. The establishment from Moscow like other businesses was beleaguered by the collapse of the Soviet Union in 1991. Despite, the challenges, in 2001 Soyuzmultfilm confirmed about a grand project based on the works of German 19th century author E. T. A. Hoffman (1776-1882). Soyuzmultfilm previously has not produced a feature film since 1985. The project combines the best traditions of classic Russian animation and modern technology. The film is Soyuzmultfilm's entry to the digital media industry and a turning point in its history. The film became one of the largest full-length and technically complex cartoons in the studio's recent history that took over fifteen years of production. The studio invited Mikhail Shemyakin to the project as animation director.