UK tax authority HM Revenue and Customs (HMRC) has charged mega-gallery Hauser & Wirth with breaching criminal sanctions by allegedly making a luxury artwork available to a person connected with Russia. The case involves a 2021 work-on-paper by George Condo titled *Escape from Humanity*, sold by the gallery between April and December 2022, after the UK banned luxury goods exports to Russia-linked individuals in April 2022. The gallery, along with shipping company Artay Rauchwerger Solomons, faces charges under the sanctions law, which was enacted following Russia's invasion of Ukraine. Hauser & Wirth has stated it strongly contests the charge and intends to plead not guilty.
This case is significant as it is believed to be the first prosecution under the UK's luxury goods sanctions law targeting the art world, setting a potential precedent for how galleries and dealers must navigate post-invasion trade restrictions. The charge comes amid broader financial pressures on Hauser & Wirth, whose UK subsidiary reported an 87 percent decline in pretax profit last year. The legal proceedings also coincide with Condo leaving the gallery for joint representation by Sprüth Magers and Skarstedt, adding further complexity to the gallery's current standing.