In late January the art- and-jewelry fair manager Art Culture Studio (ACS) announced that it had canceled the sixth edition of the Moscow World Fine Art Fair, which had been scheduled to run from May 25 through June 1. The Geneva-based ACS also said it would no longer sponsor the Salzburg World Fine Art Fair, which is under the direction of Bruce Lamarche and scheduled for August.

The firm’s general manager, Sixtine Crutchfield, says it was unable to secure funding to cover the approximately €3 million ($3.9 million) in production costs for the Moscow event; booth fees, which averaged €800 ($1,000) per square foot (jewelers paid a higher fee because of insurance and other costs), went only to the rental of the Manege building, in central Moscow.

In mid-February, when the story broke on ARTINFO, Crutchfield characterized the decision as "hasty" but explained that "we depend on sponsors, and the timing became critical. Either we took the risk that they would come on in the end, or we played it safe. We decided to play it safe. It’s better to cancel now rather than months from now, when our exhibitors would have been putting stock aside."

She says that by mid-December, 82 dealers had signed up for the fair, the same number as in previous years, but by the end of January, around 10 — including such well-known Russian contemporary-art galleries as Aidan, Regina and XL — had pulled out, as had the prominent jewelers Bulgari and Harry Winston. According to ACS, the Moscow-based luxury retailer Mercury — which in addition to holding a majority stake in the auction house Phillips de Pury & Company distributes Bulgari and Winston in Russia — had discouraged the two firms’ taking individual booths, as opposed to participating under the Mercury banner. Alexander Reebok, the firm’s general manager, disclaims responsibility: "This was the brands’ decision, and we support it."

ACS, which launched the Moscow fair in 2004 under the direction of its founder, Yves Bouvier, hopes to revive it in 2010. But Crutchfield says the firm will focus more on noncommercial art-and-jewelry exhibitions in Europe. The Moscow event has always faced obstacles: In 2005 Russia imposed a 30 percent duty on any items sold there. And high insurance costs and pricey 10-day hotel stays made it expensive for dealers to attend. Crutchfield also notes that ACS was hesitant to put on such a "lavish" affair with the host country’s economy suffering. "We were getting lots of information coming directly from Russia, from the newspapers or people we know, that the current government is keeping a close eye on oligarchs spending a lot of money" — attention that could put a damper on sales.

The uncertain financial climate has made other event organizers hesitate, too. Expo-Park Exhibition Projects Ltd. has moved the 13th edition of Art Moscow, the city’s contemporary-art fair, from May to September, to coincide with the third Moscow Biennale. By then, Expo-Park’s general director, Vasily Bychkov, told the press, "everyone will have gotten used to the new reality."

To counter reports, in the wake of ACS’s withdrawal, that the 2009 Salzburg World Fine Art Fair had been called off, Lamarche released a statement saying: "At the moment we are considering options for additional prospective new sponsors and, following the success of the last two years, foresee the third edition taking place." It is currently scheduled to run from August 15 through 23, overlapping with Salzburg’s music festival, which, Lamarche says, provides him with "a captive audience."

He cofounded the Salzburg event in 2007 with ACS, which then hired him to run it. Last year, the two parties split amicably, with the firm setting up Lamarche in his own management company and providing sponsorship for the fair of around €300,000 ($383,000). Crutchfield, who says the money covered the administration, rental, catalogue, invitations and advertising costs, explains that the partnership was never intended to be long-term.