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Art gallery associated with Princess Eugenie alleged to have violated Russia sanctions following NCA alert

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Art gallery associated with Princess Eugenie alleged to have violated Russia sanctions following NCA alert
Art gallery associated with Princess Eugenie alleged to have violated Russia sanctions following NCA alert

The London art gallery Hauser & Wirth, where Princess Eugenie of York — daughter of Prince Andrew and granddaughter of the late Queen Elizabeth II — serves as a director, has been accused of violating UK sanctions against Russia.

According to UK authorities, the gallery allegedly provided luxury goods to a person connected to Russia between April and December 2022. Officials claim Hauser & Wirth transferred a painting by American artist George Condo, titled Escape from Humanity, to Russian art collector Alexander Popov, who co-runs the Popov Art Foundation with his wife Evgenia.

Princess Eugenie has worked with Hauser & Wirth since 2015 and holds a director position, but is not part of the London board of directors, and The Times notes there is no evidence linking her personally to the alleged transfer.

A second company, Artay Rauchwerger Solomons Limited (formerly Art Logistics Limited), which handled the transport of artworks, has also been charged with breaching the sanctions ban between August and December 2022. The company, currently in liquidation, denies any wrongdoing.

The case is the first known prosecution in the UK over the luxury goods export ban to Russia, introduced in April 2022 after Moscow’s full-scale invasion of Ukraine. Initial hearings were held at Westminster Magistrates’ Court, and the case has been referred to Southwark Crown Court for a preliminary hearing on December 16.

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At the same time, the UK National Crime Agency (NCA) has issued a warning to art storage facilities about criminal exploitation of the sector by sanctioned Russian individuals.

Adrian Searle, Director of the National Economic Crime Centre at the NCA, said that sanctions evaders “undermine UK national security” and urged the art sector to step up its vigilance.

“The potential value that can be transferred through the art market makes it attractive to criminals, money launderers, and designated individuals. We need the sector to embrace its role as the gatekeeper of the legitimate art market,” Searle said.

The NCA alert warns that wealthy elites, including Russian oligarchs, often store valuable art in specialist facilities as a way to evade sanctions and move assets discreetly.

Art market participants are urged to look out for red flags such as:
– sudden changes in client circumstances,
– transfers of ownership to relatives or associates,
– attempts to move or sell artworks quickly across borders, and
– the use of shell companies or opaque trust structures to obscure the ultimate beneficial owner.

Sophie Walker

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