Gallery linked to Princess Eugenie faces criminal charges over ‘Russia sanctions breach’

The allegation relates to the painting “Escape from Humanity”, which prosecutors claim was supplied to Russian collector Alexander Popov during the period when strict export controls were introduced.

The charges follow an investigation by HM Revenue and Customs into whether the gallery breached luxury goods rules brought in by the UK Government in response to Vladimir Putin’s attack on Ukraine.

In April 2022, the Department for International Trade imposed a ban preventing the supply of goods worth more than £250 to Russia.

The restrictions cover a wide range of high-value items, including artwork, jewellery, fashion, vehicles and semi-precious stones.

Convictions under these measures can lead to a prison sentence of up to six months and unlimited financial penalties.

The case against Hauser & Wirth is understood to be the first prosecution under these specific luxury goods regulations.

Investigators focused on whether making the Condo artwork available to Mr Popov amounted to a breach of the ban.

Mr Popov runs the Popov Foundation in Moscow with his wife, Evgeniya Popova. The organisation displays contemporary pieces by Western and Russian artists.

In a 2020 interview with Art Focus Now, Ms Popova described their collecting approach as driven by emotion.

Princess Eugenie has worked as an associate director at Hauser & Wirth since 2015. She does not sit on the London board, and there is no suggestion that she was involved in the alleged transaction or had any role in the matter before the court.

Her work with the gallery has typically focused on client liaison, exhibitions and supporting projects across its international programme.

The case first appeared before Westminster Magistrates’ Court on Wednesday, where no pleas were entered.

Proceedings have now been sent to Southwark Crown Court, with a pre-trial hearing scheduled for December 16.

The court is expected to set out the next steps in the prosecution and establish the timetable for the case to progress through the criminal justice system.

A spokesman for Hauser & Wirth said: “Our UK gallery has been charged with one instance of making an item of artwork available to a non-sanctioned person connected with Russia.

“We are fully committed to complying with all our legal obligations, including sanctions.

“As the case is ongoing, we are unable to comment further other than say we strongly contest this charge and intend to plead not guilty.”

The gallery continues to operate as normal while preparing its defence, and the case now moves into the formal court process created for sanctions-related prosecutions introduced after the start of the Ukraine War.