Russian Auction House Trying to Walk Away From War


Russian troops had just begun. to invade Ukraine When the executives at the Phillips auction house realized they had a problem.

Public awareness was developing towards the Russian oligarchs and their interests. Sanctions were imposed, his assets were frozen. some collectors the concerns expressed Phillips was owned by two wealthy Russians who also control the Mercury Group, one of the nation’s largest luxury retail companies.

“We had to make sure people knew which side we were on,” said Ed Dolman, Chairman of the Board. Phillips, does most of its business from New York and London. “There was a lot of discussion that took place across the company.”

On February 28, four days later infestationPhillips posted an online statement He condemned this war and put forward the Ukrainian flag. Auction house managers soon began to reassure clients that the business was financially stable.

Then, just hours before the big contemporary art sale in London on March 3, the company announced He would donate all the proceeds from the auction to the Ukrainian Red Cross Society. At the end of the sale, that fee reached $7.7 million.

“In that moment, they took the lead,” said Josh Baer, ​​a New York-based art consultant and commentator who made sales calls through Phillips. They prevented this with their statements and donations.”

Given the murkiness of the art market and the restrictions on uncovering financial details of private companies, it’s hard to say with certainty that Phillips hasn’t been harmed by the war and calls by some to boycott his services. But that’s what the company has declared, and so far publicly accessible metrics seem to support it.

At auctions in London this month, there was no sign that senders or collectors were leaving the company. On March 4, it recorded its largest ever total for the London day sale and charity auction All 15 lots were sold this week in London.

At the London evening sale on March 3, five lots were withdrawn, but Phillips said financial rather than political concerns had prompted shippers to withdraw lots from the $40 million auction.

“The studies did not receive the attention we hoped for, and as a result we advised senders to withdraw in advance,” Phillips said in an email.

The auction season isn’t over yet, though. Spring sales in New York will kick off a few weeks later, where prices set for big tickets go a long way in determining an auction house’s bottom line.

Former Bonhams CEO Matthew Girling has urged collectors to boycott Phillips. Interview with Art NewspaperHe suggests that he will only “attract the attention of the world and Mercury owners to influence Putin to change the course of action he has now chosen”.

An important collector Andy Hall, although searched by a Phillips executive after stating online that the company is Russian-owned, concurs. “I don’t think anyone should do business with Russia right now,” he said in an interview.

“The art world likes to present itself as vigilant and in the politically correct place,” he continued, “but it is pure hypocrisy here that people are happy to continue buying and selling art through this Russian entity.”

British-Indian sculptor Anish Kapoor also weighed in. “Putin’s supporters are a legitimate target wherever they are,” he said in an email. “Phillips is as good a target as Chelsea football club,” he said, referring to a football team owned by Russian billionaire Roman Abramovich. assets frozen By England this month Abramovic is currently trying to sell the team.

Phillips is owned by two Russians, and control a trading empire in Russia – Leonid Friedland and Leonid Strunin – Yet they are not on the same level as Abramovich. They are very wealthy, collect art and have a large footprint in the Russian economy, but they are not seen as politically influential oligarchs and are not subject to sanctions. Phillips said the owners “have no political or commercial affiliation with the Russian government.” And now, with the statement posted on the company’s Instagram page, they pitted themselves against Russian President Vladimir V. Putin.

“As Phillips, we unequivocally condemn the invasion of Ukraine,” said Stephen Brooks, the company’s CEO.

“We, along with the rest of the art world, are shocked and saddened by the tragic events unfolding in the region,” the statement said.

Dolman said the owners insisted that the company donate all fees from the March 3 London auction as donations to the Ukrainian Red Cross.

According to British company records, Friedland now resides in Monaco and Strunin in Cyprus. But their business presence in Russia is extensive and high-profile. The Mercury Group, which they founded in 1993, is one of the largest distributors of high-end apparel, jewelry and other luxury products in Russia. runs dozens of boutiques around the country. their store, TSUMIt sits near the Bolshoi Theater in the middle of Moscow city centre.

During auction season, owners have been known to show up at sales and hang out in the wings, but it’s unclear whether they’ll be in New York when the mallet first arrives for Phillips’ marquee sale of the year on May 18. Evening auction of 20th century and contemporary art. Neither man responded to interview requests.

At the beginning of this sale will be a monumental 1982 work by Jean-Michel Basquiat. picture of a horned devil“Untitled,” which seems certain to raise at least $70 million with a third-party guarantee, making it the most expensive piece Phillips has ever sold. It was announced on February 28 that the piece was sent by Japanese billionaire collector Yusaku Maezawa, four days after the Russian invasion, which the company cited as additional proof of trust in the art world.

Dolman said there was no significant pullback from this sale, but declined to be more specific. Shipments now continue to arrive, about half of last year’s 48, Phillips said. According to the company, projected total sales are already expected to exceed $118.2 million generated in the same sales last year.

Dolman said the Phillips team did not use financial incentives to discourage shippers from withdrawing their work. “We have adhered to our standard terms of sale and payment,” he said.

But he acknowledged that they were working to steer the auction house and its owners away from the war.

“We are clearly aware of the fact that the whole world is surprised by Russia and what is going on,” Dolman said. “It would be easy to tar every Russian citizen with the same brush. It condemns an entire nation to isolation.”

“Phillips’ owners,” he added, “are appalled by the events.”

Some experts said part of the auction house’s resilience during the crisis was due to the fact that many art world residents saw Dolman and Brooks, Christie’s former senior executives, and their team as the face of Phillips. Owned by Russians.

Peter Brant, a prominent collector who traveled to the Hungarian border this month to provide supplies for Ukrainian refugees, said he did not support the boycott of Phillips. He said that while he hasn’t done much business there in recent years, he has high opinions of the company’s employees.

“If they are boycotting,” he said, “it will be difficult for them, but they are very resourceful people. They will do everything they can against it.”

In response to a question by email, artist Ai Weiwei said he does not support boycotting a private initiative “just because it belongs to the Russians”.

“Actually, this kind of boycott is bullying and bullying,” he said, adding that “its core is racism, discrimination and political correctness.”





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