Dec. 5 (Bloomberg) -- Russian sculptor Anatoly Osmolovsky won Russia's first Kandinsky Prize for contemporary art with a work inspired by a Soviet tank turret.

The bronze ``T-72'' by Osmolovsky, 38, last night helped him beat other finalists AES+F and Yuri Albert. He was named Best Artist of the Year and won 40,000 euros ($58,889) at a ceremony in Moscow.

AES+F, an art foursome, placed its hope for victory in ``The Last Riot'' series of digital photographs showing armed children ready to commit acts of violence. The work was shown at this year's Venice Biennale. Albert was nominated for his video performance, ``Exhibition.''

The Kandinsky Prize, named in honor of one of the greatest Russian 20th century artists, Wassily Kandinsky, is supported by Deutsche Bank AG and the Moscow-based Art Chronika Culture Foundation. Russian newspapers billed the award as the country's ``Turner Prize,'' a reference to the U.K.'s top prize for contemporary art.

The Moscow ceremony at the Winzavod Center of Contemporary Art, owned by transport magnate Roman Trotsenko, was packed by Russia's business and cultural elite. Guests included billionaires Viktor Vekselberg and Mikhail Fridman. Near them sat Ukrainian billionaire and contemporary art collector, Victor Pinchuk. He sits on the Kandinsky Prize's board of trustees.

``This is a good thing for Russian contemporary art, and in general, good for the nation,'' Fridman, 43, said after the ceremony. His fortune is estimated by Forbes at $12.6 billion. ``The artworks here today were very interesting.''

Rich Interest

The prize's creation reflects growing interest in Russian contemporary art after more than a decade of public neglect. With the Russian economy growing since 1999, wealthy Russians, as well as foreigners living in Moscow, are spending more on contemporary works by local artists.

The Kandinsky Prize, which is only open to Russian artists, ``hopes to develop Russian contemporary art, and to seek out new and interesting projects and artists,'' said the organizers in their manifesto. Dec. 4 was chosen as the day of ceremony because it was Kandinsky's birthday.

The six-person jury included Valerie Hillings, a curator at the Guggenheim Museum in New York, and Friedhelm Huette, director of the Deutsche Bank Art Collection.

Kissing Policemen

Last night's ceremony began an hour late because some billionaire guests were caught in a Moscow traffic jam. When the ceremony finally got under way, two threatening police officers entered the hall from opposite sides. They moved to the center of the stage, embraced and passionately kissed as the crowd burst into applause.

The performance was a clear sign of support for ``Era of Mercy'' (2005), a color photograph by the Blue Noses art duo. At the end of October, Russia's Culture Ministry banned the image from an exhibition of Russian contemporary art in Paris. The picture shows two Russian police officers locking lips in a birch grove. The ministry said the work was a ``disgrace.''

The Blue Noses --- Sasha Shaburov and Slava Mizin --- then came on stage to host the ceremony. Awards were given in several categories. Best Young Artist of the Year went to Vladlena Gromova for her video, ``Portrait'' (2007). It shows the artist drawing crude facial features onto a sheet that covers someone else's face. When the face has been drawn, that person bites and eats an apple.

Stalin's Volga

Best Art Media Project of the Year went to St. Petersburg performance artist, Vladislav Mamyshev-Monroe, for his video, ``Volga Volga'' (2006), where he superimposes his head onto that of Soviet film star Lubov Orlova in the 1938 romantic comedy of the same name. The film is reputed to be Stalin's favorite.

``This art is so very different from everything else that is happening in the country that it's quite nice to see,'' said Vekselberg, 49, whose fortune is estimated by Forbes at $10.4 billion. ``I haven't done much to support contemporary art, but I really like it.''

Vekselberg is famous for his collection of 19th and 20th century Russian art, most of all his purchase in January 2004 of the Forbes Faberge Collection.

To contact the reporter on this story: John Varoli in Moscow at jvaroli@gmail.com

Last Updated: December 5, 2007 05:01 EST