Lev Avnerovich Leviev. Curriculum vitae.

Born July 30, 1956 in Tashkent (Uzbekistan) in a Hasid Sefardi family. His Father Avner Leviev, a trading enterprise employee, was the tsadik (religious leader) of the local Hasid community. His grandfather, due to his orthodox views and Hasid faith, was subject to repression: in 1949 he was arrested and transported to Siberia. L.Leviev received a highly religious family education. His religious views and the relevant external symbols he openly used many a time provoked aggression of anti-Semitic individuals among the local population.

In 1972 Avner and Lev Leviev were accused of illegal trade in consumer goods and antiques by officials of the USSR security agencies. In the same year the family emigrated to Israel having succeeded in smuggling away a parcel of diamonds estimated at $ 200 000 (data by «Forbes»). However, there is information obtained form alternative sources of the diamonds having turned out to be artificial and the family having found themselves financially hard up, to be saved only thanks to the governmental repatriate encouragement programmes and support rendered by the Hasid community. Some analysts, having put together the fact of the family members practically simultaneously having been launched criminal charges against and granted the permit to immigrate to Israel, propound the idea that the Levievs may have been recruited by the Soviet intelligence services that at the very same time actively worked on deploying a network of agents in the Middle East, but their version lacks documentary evidence.

Within the context of the episode the recollections of David Gurevich, Lev Leviev’s former religion tutor that eventually became head rabbi of Kazakhstan and Central Asia, are of some interest: «At Reb Avner Leviev’s I tutored Levi Leviev and his cousin Mirhai. A daily visitor at their house, I regularly discoursed with Mrs Hanah Leviev and paid special attention to her devotion to the idea that her children should be educated in the spirit of the Hebrew tradition. Later they had Moshe and Shmuel born to them. Hanah is real Eshet Hail. Reb Avner is a well-known .philanthropist that had helped many of those in need and God rewarded him: he succeeded, while under examination and released in his own custody, to leave the country together with his son. The OVIR clerk would not have ten visas for the whole of the family formalized at once ("Are you laughing at me? I’ve got heaps of work to do!” he said), and only two visas were issued. On the very same evening when Reb Avner and his son were flying from Moscow to Vienna, unwelcome guests knocked tat Hanah Leviev’s door and produced a warrant for her husband to be arrested. Pale and crying, she declared her husband had run away, having abandoned her. And a after a fortnight a family reunion in Israel took place. Soon after that, on Yud Shvat, having come to Rabbi’s, Reb Avner thanked Rabbi and said, addressing him: “You have worked the miracle!” But Rabbi objected saying: “It is Him that has worked the miracle!” and pointed upwards».

In Israel L.Leviev, whose education by the time was limited to a course of studies at Tashkent Secondary School No 91 (which he never had time to complete) became apprentice diamond-cutter at the «Zotar» workshop in the town of Kiryat-Malahi. During 1974 – 1976 L.Leviev performed his military service in the ZAHAL communication troops.

When his service in the army of Israel was over, L.Leviev started a diamond-cutting business of his own whose successful progress was greatly promoted by his fortunate marriage (in 1976) to the daughter of a well-off businessman working in the same sphere. Currently Olga and Lev Leviev have nine children who are also involved in the family business.

In 1986 L.Leviev was awarded a prize as Israel’s diamond-cutting industry most efficient entrepreneur. In 1987 he became a «De Beers» site holder.

Information on L.Leviev’s career during 1986 – 1990 is utterly scanty. According to some sources during this time he acted as the «De Beers» representative in Russia, Israel, Belgium and Ireland, but there is hardly any information on the nature of his activity, names of his partners and counteragents and the scale of the contracts concluded. The fact is worth mentioning that some informational «lacunae» (or at least desire to preserve ones intact) is typical of most business tycoons that used the USSR economy as the «starting ground» for launching their major projects. Formation of the “business bearing framework” of many a currently successful financial and industrial company was at that time greatly contributed to by all sorts of irreversibly degrading Soviet Union governmental, Communist Party and security agencies, with their most sensitive element of formal and informal international ties involved in the process. That is why unnecessary instantiation of certain organizational and financial issues would make the companies run additional unjustified risks throughout the whole of their lifecycles.

It was at the very same time that on the surge of the reforms aimed at the USSR planned economy system radical transformation that the “Glavalmazzoloto” agency was founded, equal in status to a federal ministry, which came to be headed by Valery Rudakov, former chief executive of the «Yakutalmaz» trust. The agency controlled diamond mining and cutting enterprises, as well as relevant domestic and foreign trade companies. In 1989 a delegation of the “Glavalmazzoloto” specialists including Soviet intelligence service agents arrived in Israel in order to select the worthy partner for the establishment of the first USSR/foreign joint venture in the sphere of brillianteering. The choice made in favour of L.Leviev was objectively well-grounded for at the time the Israeli businessman owned one of the largest in the country diamond-polishing plants equipped with brand-new sophisticated technology.

«Ruiz-Diamonds» Joint Venture (its participants being: USSR “Glavalmazzoloto" and L.Leviev) was incorporated in 1989, its facilities arrangement and production proper to begin in 1990 and 1991 accordingly. In the same year due to the USSR collapse “Glavalmazzoloto” ceased to be. Soon L.Leviev turned the sole participant of the project which he has done his best to develop; as a result his enterprise is at present ranged among the largest Russian polished diamonds manufactures, its annual output amounting to $ 0.5 billion.

In spring 1995 there appeared signs of a rift in the relations between L.Leviev and «De Beers». L.Leviev, S.Veksler and H.Arslanyan were expelled from the number of the «De Beers» site-holders. The parties never commented on the decision causes but some analysts are of the opinion that that was the way the above diamanters came to be punished for having participated in the so-called «grey» export of rough diamonds of the Gokhran [State Repository for Precious Metals and gems] stock in contravention of the acting agreement between the Russian Federation authorities and «De Beers» (with the help of tolling and multiple other tricks). The fact of the Gokhran stocks having been liquidated during 1992 – 1997 is not disputed by any of the branch specialists. It is also no doubt that their valuables including rough diamonds were partly disposed of through illegal channels (the case of «Golden – ADA»). But there is no factual evidence of L.Leviev having been involved in the process and the final causes of the breach in his relations with «De Beers» in 1995 remain a topic for debate.

In 1996 in Perm «Kama-Kristall» Closed Joint-Stock company was incorporated, its shareholders being: regional administration, NP “Uralalmaz” and a number of local enterprises (51% in total) and L.Leviev (49%). The factory’s annual output amounted to 200 thousand carat of brilliants. The raw material was supplied both from the «Uralmaz» mine that at the time had the «people’s enterprise» anachronistic status, and the Gokhran stocks. In this respect it is noteworthy that there was a special Decree of the Russian Federation President passed (signed by Boris Yeltsin) for at least 75% of the diamonds extracted in the Urals region to be polished in the region they were mined in. The development of L.Leviev’s business in the Urals region is a proof of his confident adaptation to the new Russian social realia and lobbying abilities; thus, he was on good terms with Y.Trutnev (Mayor of Perm at the time of «Kama-Kristall» - incorporation, afterwards – Perm Region Governor and (currently) Russian Federation Minister of Natural Resources ).

In 1997 L.Leviev purchased the control stock of the “Africa – Israel” conglomerate holding of “Bank Leumi le-Israel”. Later on the contacts of “ Leviev Group” and the major Israeli bank became even closer: the son of “Bank Leumi” President Galia Maor, Ron Maor, became a member of L.Leviev’s corporation board of directors (Galia Maor's son to work for Lev Leviev, Haaretz, 03.09.06). In the course of time L.Leviev’s business has been growing increasingly diversified. Currently (in 2007) “Africa – Israel Group” works in such spheres as housing and industrial construction, tourism and recreation industry, individual heavy and light industry branches, telecommunications and mass media, oil-processing and international retail chain marketing. In accordance with independent experts’ estimate the value of his corporation’s Russian assets taken separately amounts to $4 billion. Open sources provide no data on analytical study of connections and mutual influence of L.Leviev’s diamond business and «non-diamond» projects. But the task is definitely one of key importance for diversified flows of funds of the scale in question can be employed as an effective instrument of controlling the price climate at both the rough and polished diamond markets. It is also to be noted that the non-diamond “Africa – Israel” enterprises are open joint-stock companies, with data on some of them entered in the stock exchange quotations thus ensuring an adequate transparency level. But L.Leviev’s diamond business still remains predominantly non-transparent.

In 1997 L.Leviev (through the mediation of ”DIUMONTY” company) obtained 18% of the shares of the «Catoca» geological survey association (Angola). Among the latter’s other share-holders are: “ALROSA” (Russia) - 32%, “Endiama” (Angola) - 32%, “Odebrecht” (Brazil) – 16.4%. Soon afterwards (in 1999) L.Leviev came to control the whole of the Angola diamond export through the «Ascorp» enterprise incorporated jointly with the government of the country.

It was evident that in the market there had appeared a company rapidly progressing along the vertical integration route and capable to become the first in the world diamond industry history to encompass in its activity the whole of the «extraction– polishing – jewelry production – retail chain trade» process. The further course of events is evidence of L.Leviev consistently implementing a strategic policy aimed at a vertically integrated diamond producting business formation. During 1998 – 2005 he purchased a considerable packet of shares of “Namko” (Namibia) (see Leviev takes control of Namco, Mining Journal, 2002) engaged in diamond mining at the offshore deposits of Namibia and South Africa, founded new diamond-cutting enterprises in India, China, Angola, Namibia, Armenia, Russia and the Ukraine, concluded cooperation agreement with the leading world diamond jewelry manufacturers and retail chains such as “Bvlgary” and “Stern” and even made an attempt to grow a jewelry brand of his own - «Leviev». At the same time L.Leviev succeeded in establishing firm ties with the Russian rough diamond suppliers: «Ruiz Diamonds» became a major “ALROSA” site holder and practically the sole purchaser of the raw material supplied by «Anabar Diamonds» Open Joint-Stock Company (joint venture of “ALROSA” and administration of the Anabar District, Yakutia). Another Russian diamond-polishing enterprise controlled by L.Leviev, «Almi Diam» Limited Liability Company, worked on the raw material supplied by «Nizhnelenskoye» Open Joint-Stock Company (Yakutia).

The rivals and the press could but pay attention to the rapid growth of L.Leviev’s business. Before 1997 his name was but occasionally mentioned in the specialized diamond market periodicals, comments on his activity being few in number rand neutral in tone. But after he had purchased a share in the Catoca project there came a radical change in this respect. Since 1998 there have been published multiple articles in Russian and foreign periodicals (and even some books) unambiguously meant to discredit L.Leviev The articles' tone often is that of criminal investigation reports which is quite untypical of journalists writing on the diamond market issues. On the whole one must admit the scale and duration of the media attack launched at L.Leviev are unprecedented for the branch.

The main topics touched upon in the above articles are the following:
- L.Leviev’s alleged contacts with intelligence services and their use as an instrument of unfair competition in the diamond market;
- L.Leviev’s alleged participation in trading weapons and dual purpose materials through «grey» and «black» market channels, the major route being: CIS countries – East Europe - Africa;
- L.Leviev’s alleged contacts with the so-called «Russian oligarchs» (including Boris Berezovsky) in whose respect the press has a lot of discreditable information available
- L.Leviev’s national and religious identity and his social activity.

Considering L.Leviev’s business being yet undiversified and confined mostly to diamond market operations at the time when the denouncement attack was initiated (1998), it is logical to suppose the campaign had been planned and executed by his direct business rivals. But that seems to be but a perfunctory conclusion.

L.Leviev’s real problem consists not in the progress of his diamond business, too dangerously rapid in the opinion of his competitors, but in the personality of the one the progress was greatly promoted by. L.Leviev’s success in Angola was mostly due to the assistance of Arkady Gaidamak, a person that has played quite a specific role in the recent development of the diamond market (the «Arkady Gaidamak and “Abalone Investment Ltd”» section is currently in the process of elaboration).

In late 1990-s in Russia among the institutions privatized were not only banks, but also the informal entities once founded with the view of, in the first place, dodging the COCOM limitation, and on the other – regulating the supply of weapons and dual purpose materials, technologies and equipment to political regimes allied to the USSR. Among all the far-reaching consequences of the “privatization” the following are most essential:
- there has appeared a new group of weapon market participants unrestrained in their activity by obligation to consider any national or state interests whatsoever;
- massive and uncontrolled leak of information on the informal weapon trade and supply channels established at the Soviet Union time enabled the American, British and French intelligence services to make use of the channels within the context of the global campaign launched against international terrorism.

Due to a number of reasons Arkady Gaidamak enjoyed access to the above channels. Anyway, the French judges in charge of the case popularly known as “Angolagate”, P.Courroye, I.Prevot-Despret and M.Vobayonne declared he «made use of the weapon supply infrastructure established by KGB as long ago as late 1940-s with the view of supporting national liberation movements in the “Third World” countries». This accounts for most of A.Gaidamak’s influence with the highest Angola governmental officials and subsequent success of L.Leviev attained thanks to protection by A.Gaidamak

When becoming involved in business cooperation with such a partner (after the Angola “transaction” A.Gaidamak received 15% of the “Africa – Israel” packet of shares) L.Leviev ran a risk whose eventual consequences he could hardly fully foresee at the time. The scale and intensity of the campaign to be started concerning the so-called «conflict African diamonds» and (which is by far most important) the actual significance of the diamond market sources for the whole of the international terrorism financing scheme were not yet to be adequately estimated. Meanwhile, the name of A.Gaidamak, as well as that of another major “shadow" weapon market tycoon V.Boot, was mentioned in one of the first reports of “Global Witness” which is a non-governmental organization well known for its first-rate sources of qualified information (including «De Beers»).

In spring 1999 the Angola transaction was followed by the projects jointly implemented by L.Leviev and A.Gaidamak in Kazakhstan including the purchase of “Tselinny Gorno-Khimicheskii Kombinat” (TsGKhK) [Industrial Complex for Mining Chemistry of the Virgin Soil Region], the formerly USSR leading uranium refinery enterprise. This served as another pretext for the hostilely-minded press to raise the issue of L.Leviev's alleged involvement in shady operations in the dual purpose technology market on the territory of the former USSR. It is also worth mentioning the business activity of L.Leviev in Kazakhstan was paid close attention to by the “Carnegie Foundation” experts.

The weapon and dual purpose technology markets (both legal and “shadow”) depend on the current political trends to a greater extent than the diamond one. That is why A.Gaidamak’s and L.Leviev’s positions have been and are shaped under the influence of totally different people and organizations which factor has initially predetermined the outcome of their alliance: in 2003 A.Gaidamak used his authority with the Angola top officials for an object exactly opposite to the one he had purposed in 1998 – 1999; as a result L.Leviev ceased to exclusively control the Angola diamond export. Though all the business relations between the two have been severed, A.Gaidamak’s activity in a definite way constitutes threat to the interests of L.Leviev and some other people, especially if A.Gaidamak eventually comes to be extradited to France, where the relevant services are sure to do their best to obtain from him detailed information on the projects implemented by “Africa – Israel” in Angola and Kazakhstan.

In 2000 L.Leviev made a successful attempt at becoming involved in the political life of the Russian Federation by founding the Federation of Jewish Communities of Russia that came to be headed by rabbi Berl Lazar. As a result the Russian Jewish Congress presided over by V.Gusinsky lost its former monopoly right to act on behalf of the Jewish population of the country. By doing that L.Leviev did a great favour to the Kremlin administration that henceforth was free to repudiate V.Gusinsky without running the risk of being accused of anti-Semitism. The act must have earned L.Leviev some credit with the Russian federal officials; anyway the Russian developer project of his “AFI Development” company have been a success.

But the success is fraught with potential risks. Among the members of the Russian Jewish Congress that has lost access to the Russian politics ropes as a result of L.Leviev’s activity there are many influential politicians and businessmen whose grudge against L.Leviev is notorious. In the present situation conditioned by the so-called «Problem 2008» there is a high probability of new attempts at discrediting L.Leviev to be initiated. This factor as well as the «A.Gaidamak Problem» and the above-mentioned “informational vacuum zone” of 1986 – 1990 are currently the most vulnerable spots subject to media attacks that may be stimulated by business and political rivals of “Leviev Group”.

(This story is based on Russian and foreign media and Internet reports)