Uncertainty grips auction houses as Russian buyers flock to Sotheby's, Christie's, Phillips

A new wave of wealthy Russian collectors, suspicious of dealers, exclusively buys modern art at Sotheby's, Christie's, and Phillips. However, the major auction houses face deep uncertainty. Sotheby's majority shareholder was convicted of antitrust violations and faces prison; the firm is for sale with no strong interest. Christie's, owned by François Pinault, has lost key specialists Franck Giraud (Impressionist) and Philippe Ségalot (Modern/Contemporary) to independent private dealing. Phillips, after Bernard Arnault sold his majority stake to Simon de Pury and Daniella Luxembourg, struggles with creditworthiness despite backing from Ronald Lauder and Louise T. Blouin MacBain. It may hold for May sales with the Francesca de Habsburg collection. Drouot, with 110 auctioneers, faces valuation disputes and uncertain sale; Pierre Bergé withdrew, and two investment banks seek over 20% return in five years but lack interest in the auction business.