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Dimitri Smirnov's avatar

The Largest Conspiracy in the Russian Art World:

In the late 1920s and early 1930s, the Soviet Union under the Bolsheviks enforced strict controls over cultural expressions, clamping down on abstract and avant-garde art, which they viewed as elitist and subversive. Such art was perceived as a threat to the new social order because it did not conform to the straightforward, propagandistic art that the regime favored. As such, thousands of paintings by prominent Russian artists like Wassily Kandinsky, Kazimir Malevich, and Marc Chagall were seized and stored in museums across Russia, often hidden, neglected, or poorly preserved, to suppress their influence on society.

In the early 1990s, following the dissolution of the Soviet Union, Russia faced severe economic turmoil and was on the brink of bankruptcy. The government was desperate to raise funds to stabilize the economy and provide basic services. As part of their efforts to generate revenue, they began to liquidate various state-owned assets, including real estate, hotels, and valuable artworks. Western art dealers and collectors were quick to seize this opportunity, often purchasing these valuable pieces at liquidation prices far below their market value.

A major buyer was Itzhak Zarug, who bought over 2000 paintings. Zarug emerged as a significant figure in the art market during the post-Soviet economic crisis. Recognizing the opportunity presented by Russia's need to raise funds quickly, he acquired several valuable artworks at relatively low prices. Unlike some who might have sold the artworks for quick profit, Zarug is noted for his efforts to preserve and promote Russian art. He often loaned pieces from his collection to museums and exhibitions, helping to raise awareness and appreciation of these works globally.

Another big collector of these Russian paintings was a prominent Russian art collector and businessman known for his extensive and valuable art collection.

While Itzhak Zarug became particularly active in the art market between 1990 and 2010, slowly selling the paintings at auctions at moderate prices, the Russian collector also began profiting from his paintings. He used his extensive art collection as collateral for financial dealings. This practice has included inflating the value of his paintings to secure larger loans, a tactic that allows leveraging his art assets for financial gain. However, the use of art as collateral is not without risks. The value of art can be subjective and fluctuates based on market conditions, provenance, and demand. Therefore, a problem did arise when finding out that Itzhak Zarug was selling the same paintings as him for a lesser price.

Another key detail was the era of Privatization in Russia during the 1990s that followed the dissolution of the Soviet Union in 1991. With the collapse of the Soviet Union, Russia aimed to transition to a market economy, which required extensive privatization of state-owned assets. A small number of individuals, known as oligarchs, amassed huge fortunes by acquiring formerly state-owned enterprises. This involved acquiring state assets at low prices through various methods, such as the loans-for-shares scheme or direct purchases.This concentration of wealth and power led to oligarchs like this Russian collector wielding significant political and economic influence during the 1990s. They often had close ties to political leaders and were able to shape government policies and decisions, and the Russian collector did indeed have those powerful connections in both the political world and art world.

The Russian collector recognized the problem with Itzhak Zarug selling his paintings at a lower price and realized he had to interfere. It was discovered that he had particular connections with a well known art museum in Russia. The museum has faced controversy in the past, like accusations of the museum making fake appraisals in the 90s. Regardless, the museum’s reputation remains unscathed and continues to be a powerful figure in the art world. Therefore, when the Russian collector collaborated with the museum to send a letter to German police accusing Zarug of selling fake paintings, the allegation was assumed to be true and Zarug was arrested. As such, in 2013 he was arrested in Germany on charges of selling forged Russian avant-garde paintings and all 1,800 of his paintings were seized. However, after 3 and a half years of investigations and many experts authenticating the paintings, 99% of them were found to be legitimate. Looking at the judgments, which can be found at the bottom of this article. In 2018, all Zarug collections were found authentic and he was able to resume selling his paintings as he pleased—or so he thought.

The Russian collector did not stop after putting an innocent man in prison, and he did not desire to stop as long as Zarug was interfering with his own sellings. With the museum, he bought two very large art magazines in New York and London and hired many freelance reporters to write critical articles on any activity regarding Zarug. However, it wasn’t just reporters. There was a gallerist in London who was found to be on the Russian collector’s payroll, and this gallerist badmouthed any painting from Zarug, under the pretense of being an expert.

Recently in January of this year, one of the paintings coming from Zarug was displayed in a private event at the Centre Pompidou in Paris. As usual, one of the paid freelance reporters engaged in the same fraudulent behavior and wrote an article on the event which he published in June, attacking Zarug, the painting, and the guests at the event. However, every line from that article was full of lies and fallacies. He had fabricated a story of the painting being fake when in truth the painting had passed all and any authentications required to prove genuinity. He published this report, along with many other critical articles through a very popular news publication without any genuine evidence. It is disappointing to see a news publication that is so prominent in the art world supporting such accusations without evidence, which leads to the question if the reporters are in cahoots with criminal wrongdoing, intending to ruin the reputation of an innocent man, or did they really just forget to fact-check such a critical allegation?

It is interesting to observe the lengths man will go for wealth, but it is truly disturbing to see how those efforts lead to the ruining of an innocent man’s reputation. As an art dealer, integrity and a good reputation is crucial for Itzhak Zarug to continue selling his paintings. The false accusations and conspiracies have already robbed him three years of his life, but should he continue to be harrassed for selling his authenticated paintings? Art is appreciated for its beauty, aesthetics, and craftsmanship and has the ability to foster dialogue, bridge cultural gaps, and promote understanding between people of different backgrounds. The art world was always meant to help preserve and transmit the traditions and stories from these paintings. It is not a place for corruption or fraud or greed. Therefore, it is with faith that the unprovoked controversy surrounding Itzhak Zarug can be resolved so he can continue to live his life without being unfairly tormented.

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David harel's avatar

It is so sad that the bbc puts its name on such supernatural ignorant idea that one can forge a 100 year old signed oil painting and not be immediately detected . So sad . Any serious investigation will notice that Ukrainian the home of Malevich exter lissiski tatlin and more have no paintings

Not one. In 1937 Stalin issued an order to destroy all modern paintings

The paintings were not destroyed but were stored in the basement of Ukrainian national museum in Kiev and from there in 1991 after the fall of the Soviet Union they were sold off

No forgeries only uneducated fools

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