America Must Ensure That Russia Does Not Evade Sanctions. Here’s How the Art Market Can Help

Legal and regulatory loopholes threaten not only our global security and economic integrity, but legitimate collectors, dealers, and auction houses, too.

By Deborah Lehr as featured on Artnet News

In the wake of Russia’s invasion of Ukraine, the United States has led an unprecedented effort to isolate Russia’s economy. It has frozen Russian assets, restricted trade and financial flows, seized luxury yachts, and banned Russia’s wealthy class from travel. But the American-led sanctions regime has a chink in its armor: the American art market. 

This $28 billion market is highly opaque and loosely regulated. It is filled with legal and regulatory loopholes, and has a long-standing culture of confidentiality allowing buyers and sellers of high-value art to remain anonymous. As a result, the art market is highly attractive for those who seek to launder their assets and evade sanctions.