“From Royal Circles to Sanctions Scrutiny: Princess Eugenie-Linked Gallery in UK SANCTIONS BREACH Spotlight”

An art gallery, of which Princess Eugenie is a director, has been accused of breaching sanctions on Russia.

• Hauser & Wirth Gallery Ltd., based in Mayfair, central London, and art shipping company Artay Rauchwerger Solomons were charged at a hearing at Westminster Magistrates' Court with making a luxury good available to a person connected with Russia.
• A 60-year-old woman had also been charged in the case, but counsel for HM Revenue and Customs, which is prosecuting the case, told Chief Magistrate Paul Goldspring that that had been dropped.
• Hauser & Wirth is accused of making available “a luxury good” to a “person connected with Russia” between April and December 2022.
• The gallery allegedly supplied a painting titled Escape from Humanity, by American artist George Condo, to Alexander Popov, who runs a foundation alongside his wife which includes a collection of contemporary art.
• Since April 2022, the Department for International Trade has imposed a ban on the export of items to Russia valued over £250, including high-end fashion clothing, vehicles, works of art, semi-precious stones, and jewellery.

Overview

• Global law firm Skadden, Arps, Slate, Meagher & Flom LLP has instructed a leading barrister (“top silk”) to represent the London branch of Swiss art gallery Hauser & Wirth in a high-profile sanctions case.
• The gallery, alongside an arts logistics company, faces allegations of breaching UK sanctions on Russia by supplying a painting to “a person connected with Russia.” [globalinve…review.com]

The Allegations

• Who is involved?
• Hauser & Wirth (London branch of Swiss gallery)
• Art Logistics Limited (formerly Artay Rauchwerger Solomons Ltd), now in voluntary liquidation [telegraph.co.uk]
• What is alleged?
• The gallery allegedly provided a painting titled Escape from Humanity by American artist George Condo to Russian collector Alexander Popov, who runs a contemporary art foundation.
• The transaction reportedly occurred between April and December 2022, during the UK’s ban on luxury exports to Russia. [telegraph.co.uk]

Legal Context

• Since April 2022, the UK has prohibited the export of luxury goods—including artworks valued over £250—to Russia or persons connected with Russia.
• This measure forms part of the Russia (Sanctions) (EU Exit) Regulations 2019, expanded after the invasion of Ukraine.
• Breaching these rules can result in unlimited financial penalties. [telegraph.co.uk]

Why This Case Matters

• First of its kind: This is reported to be the first prosecution under the UK’s luxury goods ban targeting the art market.
• Compliance spotlight: The case underscores growing enforcement risks for art dealers and logistics firms amid tightening sanctions regimes.
• High-profile connections: Hauser & Wirth counts Princess Eugenie as a director, though there is no suggestion of her involvement in the alleged breach. [telegraph.co.uk]

Industry Impact

• The art market has faced increasing scrutiny since sanctions were imposed on Russia in 2022. Authorities have warned that art advisers, galleries, and logistics firms must strengthen due diligence to avoid facilitating sanctions circumvention. [theartnewspaper.com]

Next Steps

• The case is currently before Westminster Magistrates’ Court, with potential penalties including unlimited fines.
• Skadden’s involvement signals the seriousness of the matter and the complexity of sanctions compliance in the art sector. [globalinve…review.com]

Long read

• Hauser & Wirth Gallery Ltd., based in Mayfair, central London, and art shipping company Artay Rauchwerger Solomons were charged at a hearing at Westminster Magistrates' Court with making a luxury good available to a person connected with Russia.
• A 60-year-old woman had also been charged in the case, but counsel for HM Revenue and Customs, which is prosecuting the case, told Chief Magistrate Paul Goldspring that that had been dropped.
• The judge transferred the case against Hauser & Wirth and Artay for a plea and trial preparation hearing to be heard on Dec. 16.
• Counsel for Artay, John Allichan of Cartwright King said the logistics company, which is dormant and being wound up by liquidators, intends to plead not guilty. 
• The gallery and Artay are accused of providing the painting, "Escape from Humanity" by George Condo, an American contemporary artist, to Alexander Popov, who is described online as the director of a Moscow-based art foundation. Popov is not accused of any wrongdoing and is not under U.K. sanctions.
• The gallery, which is based in Switzlerand but has a showroom in London, is alleged to have provided Popov with the painting between April 2022 and the end of December of that year. 
• HMRC alleges that the logistics company made the artwork available between August 2022 and Dec. 31 of that year, according to a charge sheet.
• The shipping company was incorporated in 1995 as Art Logistics Co. but changed its name in 2023. The business was voluntarily wound up in April 2024. 
• The U.K. banned the export of luxury items such as cars, jewelry, arts and antiques to Russia in April 2022, part of a wider package of sanctions imposed in response to the invasion of Ukraine.
• The law bans the direct or indirect shipment of luxury goods, even if the individual or entity receiving them has not been designated by the Foreign Office.
• Breaching the law is a criminal offence punishable by an unlimited fine for companies and up to 10 years in prison for individuals.

Further Reading

• Global Investigations Review – London art gallery faces Russia sanctions charges [globalinve…review.com]
• The Telegraph – Princess Eugenie-linked art gallery charged with breaching Russia sanctions [telegraph.co.uk]
• https://www.telegraph.co.uk/royal-family/2025/11/13/princess-eugenie-art-gallery-russia-sanctions-hauser-wirth/
• https://www.telegraph.co.uk/business/2022/03/15/britain-bans-luxury-exports-russia/
• Law360 UK – HMRC accuses gallery and logistics firm of sanctions breach [linkedin.com]
• https://www.law360.co.uk/articles/2409967
• The Art Newspaper – How Russian sanctions reshaped the art market [theartnewspaper.com]
• https://www.theartnewspaper.com/2023/03/13/how-one-year-of-russian-sanctions-have-shaped-the-art-market