Kevin Dent KC and Danielle Barden represented the Crown in a groundbreaking case seeking to delineate the scope of the Russia (Sanctions) (EU Exit) Regulations 2019 in the context of luxury goods such as art, and whether it was necessary to establish that such goods had been delivered to Russia to establish an offence under Regulation 46B(2)(b) and (4).
The case concerned the London sale and consignment of contemporary artist George Condo’s work
“Escape from Humanity” to a person said to be connected to Russia in 2022. The first corporate defendant gallery sold the work and the second corporate defendant was involved in the consignment of it, prior to it being seized by UK Border Force at Heathrow. Subsequently, both were charged in relation to the offence of making a luxury good available to a person connected with Russia.
At the dismissal hearing brought by the corporate defendants in front of the Honorary Recorder of Westminster, HHJ Baumgartner, there were two issues for consideration:
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whether there is sufficient evidence that the artwork was “made available to” the person said to be connected to Russia within the meaning of Reg.46B(2)(b); and
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whether there is sufficient evidence that, at the relevant time, the purchaser of the artwork was “ordinarily resident in Russia”, and thus a person “connected with” Russia within the meaning of Reg.46B(2)(b).
In a case that is understood to be the first to be brought under Regulation 46B(2)(b), there were competing submissions as to whether there was a requirement for the work to be delivered to the recipient in order for it to be "made available". The Recorder agreed with the Prosecution's submissions and ruled that there was no such requirement and that the offence contained no geographical limit. Consequently, the offence could be committed within the UK and the luxury good in question would not need to be exported before the offence was completed.
On the factual issue as to whether there was sufficient evidence that the buyer of the artwork was "connected with Russia", however, the Recorder ruled that there was insufficient evidence that, following the invasion of Ukraine, he had retained sufficient ties with Russia to be considered ordinarily resident there. Consequently, the case was dismissed on that basis.
Although a first instance decision, the case is considered a test case in relation to the scope of the Russia Sanctions regime in the context of the luxury goods and art market. It confirms that offences can be committed within the UK and without the requirement to let the works of art in question be delivered to their intended recipients before action can be taken. It is hoped that the decision will bring clarity to UK galleries and consigners working within that market about the scope of their responsibilities and also provide encouragement to those seeking to enforce the sanctions regime.
The ruling can be accessed
here. To read about the case further, view the Standard's press release here and ICLG's news here.
5SAH sanctions barristers can provide expert advice and representation in all aspects of Sanctions management, compliance and litigation.
A highly persuasive advocate with a calm, measured, yet robust courtroom manner. Since taking silk in 2019, Kevin has built upon his heavyweight practice in the fields of financial and serious crime.
"Kevin has an extraordinary command of the details of very complicated, fact-heavy cases. An understated, yet devastating, advocate." Legal 500.
Kevin is ranked in the Legal 500 in Fraud - Crime and Crime. He is also recognised in Chambers & Partners for his work in Crime.
Danielle Barden is a specialist in international crime and extradition law, fraud and financial crime, serious organised crime and general crime. Danielle is known for her skilled and eloquent advocacy and her determination to go the extra mile for her clients.
"She is a tenacious and skilled advocate, and her highly intelligent approach to cases inspires confidence in clients." Legal 500.
She is ranked in the Legal 500 in International Crime & Extradition and in Fraud: Crime. Danielle is also recognised in Chambers & Partners for her work in Extradition, Crime, and Financial Crime.
