Lev Leviev's lost billions hits Soviet schools

A major downturn in the financial fortunes of Russian billionaire Lev Leviev has hit the network of Jewish schools he founded in the former Soviet Union. Last week, Mr Leviev’s Africa-Israel holding company announced a 2008 loss of 4.9 billion shekels, attributed mainly to the slump in property prices worldwide. Israeli business journalists estimate Mr Leviev’s personal losses since the financial crisis began at $1.7 billion.

Mr Leviev has cut funds to the Or Avner organisation, the largest network of Jewish schools in the former Soviet Union with more than 140 schools and kindergartens. Or Avner was previously receiving around $50 million a year. According to a teacher working for Or Avner, it has been losing pupils due to cuts in services such as buses. “Most of the schools are still operating, but that is thanks mainly to local donors who have taken up where Leviev has left off.”

Mr Leviev’s press officer, Tal Rabina, denied there had been a drastic cutback. “We have had to economise due to the global financial situation,” he said. “And some other donors have also stopped giving. Mr Leviev is meeting his commitments and all the schools are still operating.”

Another oligarch who has suffered heavy losses, Arkady Gaydamak — the owner of Portsmouth FC — has severed ties with most of the organisations he supported.