"Dutch oligarch jewelry company distances itself from Putin"
Siebel Jewelers, the Dutch chain of 44 jewelry stores owned by a wealthy businessman with close ties to Putin, distances itself from the Russian invasion of Ukraine. "That one is bestial and idiotic," said director Pini Peleg.
The Dutch jewelry chain Siebel has been around for more than a century, but came into the hands of former Soviet-born businessman Lev Leviev after a bankruptcy in 2014.
Ties with Putin
The Jewish entrepreneur was born in 1955 in the former Soviet republic of Uzbekistan, emigrated to Israel with his parents in 1971, and began building an international business empire in Israel and Russia in the 1990s. Leviev is often cited as a close friend and confidant of Russian President Vladimir Putin. Business magazine Forbes estimates the wealth of the businessman, whose activities include diamonds and real estate, at more than one billion dollars.
Gloss back
Under the wings of the "king of diamonds," brilliance returned at the Dutch jewelry chain. The number of stores increased from 30 to 44. In 2019, Siebel posted a net profit of nearly half a million on a gross profit of 14.6 million euros. Even during the corona crisis, Siebel kept its head reasonably above water, according to its latest annual report. The jeweler did so by focusing on customers who could no longer spend their money on restaurants, vacations and entertainment.
Economic sanctions
But since the Russian invasion of Ukraine, the owner's identity may well work against Siebel. In recent days, economic sanctions have been raining down, designed primarily to target the Russian clique of extremely wealthy businessmen surrounding Putin.
Siebel director Pini Peleg therefore stressed that the Dutch jewelry chain is at a distance from Leviev and his Russian interests. "In the first place, Leviev is not Russian, but a citizen of Israel. Nor does he live in Russia," he says. "And Siebel is an independent Dutch company, whose shares are owned by a company in Cyprus. During the relaunch, it was falsely reported in the media that Siebel was coming into Russian hands. It all had to be done quickly, so the name of a Russian company of Leviev was mentioned as the new owner." That the jewelry chain is ultimately part of Leviev's business empire, Peleg does acknowledge. "One of his sons is also president of the company."
Independent of Russia
As a Dutch company, according to Peleg, the jewelry chain is not affected in any way by the current economic sanctions announced by the European Union against Russia. "Also, Siebel is not dependent on Russia for its financing. We do our sourcing worldwide, and only a little bit in Russia. I am happy that after all the misery of the corona crisis, this will pass us by, also for our 350 employees."
Ties Putin functional
Peleg further denies that Leviev is among the oligarchs who have a warm relationship with the Russian president, as has been said and written by numerous quality media outlets in recent years.According to the Siebel director, the ties with Putin would be merely functional. "Leviev believes he was born to help Jewish people with problems," he said. "He had to create ties with Putin to support the position of Jewish people in Russia. He is certainly not a friend of his."
Leviev not happy
Peleg also hinted that his boss does not support the Russian invasion of Ukraine. "I know the family well, very well. I can assure you that they are not happy with the situation," he says. "Leviev built business in Russia, relying on normal democracy. He established retail chains and bought buildings. And then you go through something like that, which devalues the ruble and forces the banks to close. He's not happy about that." Also personally, the Siebel executive says he rejects the Russian invasion of Ukraine. "I think it is bestial and idiotic. So we at Siebel are in the process of seeing if we can do something, such as a donation."