11 September 2011 Last updated at 04:30 GM
Russian director Alexander Sokurov's take on the German legend Faust has won the film a Golden Lion at the Venice Film Festival.
The story explores the corrupting nature of power as Faust sells his soul to the devil.
German-born Irish actor Michael Fassbender won the best actor for playing a sex addict in British director Steve McQueen's Shame.
The best actress award went to Hong Kong's Deanie Yip in A Simple Life.
Fassbender also starred in another Venice competition film - David Cronenberg's A Dangerous Method - in which he plays psychoanalyst Carl Jung.
At a news conference following the award ceremony, Sokurov appealed for governments to continue funding the arts.
"Culture is not a luxury! It is the basis for the development of the society," he said. --
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