# Top auction houses cancel Russian art sales in London Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-17 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Russian Art Sales in London Cancelled Amid Western Sanctions Meta Description: Update on Christie's, Sotheby's, and Bonhams cancelling Russian art sales in London due to sanctions against Russia for Ukraine invasion. URL: https://financedigest.com/top-auction-houses-cancel-russian-art-sales-in-londonhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-17t114957z3lynxnpei2g00zrtroptp4ukraine-crisis-art-1736815958200-compressed.jpg) By Elizabeth Howcroft LONDON (Reuters) -Auction houses Christie’s, Sotheby’s and Bonhams have cancelled sales of Russian art in London in June, part of the art market’s response to Western sanctions on Russia as punishment for its invasion of Ukraine. The auction houses hold sales of Russian art in June and November in a period known as “Russian Art Week”, attracting wealthy Russian buyers. Sotheby’s said it had called off its [sale of Russian](https://www.financedigest.com/russian-retail-sales-fall-deeper-jobless-rate-rises-in-sept-data.html "Russian retail sales fall deeper, jobless rate rises in Sept – data") art in London in June. “We are absolutely rigorous about following the present sanctions, and are monitoring closely for any updates to the lists,” it said in a statement. Christie’s also said it had cancelled its June [sale of Russian art](https://www.financedigest.com/how-i-turned-my-passion-for-art-into-a-global-business-through-online-sales.html "How I turned my passion for art into a global business through online sales"), citing factors including the uncertainty of the war and complex logistical and legal requirements related to sanctions. While the current [sales market for Christie’s in Russia](https://www.financedigest.com/kfc-franchisees-in-russia-ask-govt-to-halt-sale-of-stores-to-local-operator-ria.html "KFC franchisees in Russia ask govt to halt sale of stores to local operator – RIA") as a whole is relatively small, we have a responsibility to respond to our clients’ needs and to geopolitical events that are out of our control,” Christie’s said in a statement. The auction house added it is doing “enhanced [due diligence”](https://www.financedigest.com/why-due-diligence-is-so-important-for-direct-debit-customers.html "Why due diligence is so important for Direct Debit customers") on politically exposed people and those with a connection to sanctioned jurisdictions. Bonhams did not provide a reason for its decision. Western countries have taken unprecedented steps to cut ties with Russia, including freezing bank accounts and placing sanctions on [Russian billionaires](https://www.financedigest.com/billionaire-investor-yuri-milner-relinquishes-russian-citizenship.html "Billionaire investor Yuri Milner relinquishes Russian citizenship") following Russia’s Feb. 24 attack on Ukraine, which it calls a “special operation.” Britain [imposed sanctions on hundreds of Russian](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed") individuals and entities on Tuesday as it sought to catch up with the European Union and United States in targeting people accused of propping up Russian President Vladimir Putin. [Putin said on Wednesday that the West](https://www.financedigest.com/putin-says-peace-talks-with-ukraine-are-at-dead-end-goads-the-west.html "Putin says peace talks with Ukraine are at dead end, goads the West") was trying to punish Russia by persecuting Russians and by cracking down on Russian music, culture and literature. “By attempting to cancel Russia, the West has lifted the mask of decency and is acting like louts, showing its true colours,” Putin said. Some dealers and advisers told Reuters that the international art market as a whole is unlikely to take a hit, as Russian buyer numbers have fallen [since the 2008 financial](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") crash and represent a small part of the market. Sales of Russian works of art totalled 37.7 [million pounds](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") ($49.6 million) at Sotheby’s and Christie’s salerooms in London in 2021, less than 1% of turnover, according to Sebastian Duthy, CEO of Art Market Research. Sotheby’s and Christie’s did not immediately confirm the figure. DEALS OFF But while the auction houses face little financial impact, doing [business has been made trickier for collectors of Russian](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") art – as well as those who work with them on deals – because of fears of accidentally transacting with Russians who may end up on sanctions lists, say art market advisers. It makes it harder for the Russians and it makes it harder for the buyers as well, because you don’t want to be caught [buying something coming from a Russian](https://www.financedigest.com/indias-reliance-makes-rare-buy-of-russian-naphtha-ups-fuel-oil-imports.html "India’s Reliance makes rare buy of Russian naphtha, ups fuel oil imports") at this point,” said Barbara Guggenheim, a partner at U.S.-based art consultancy Guggenheim, Asher Associates. New York art lawyer Thomas Danziger said that he was advising clients to be wary of doing deals with [Russians who might land on the sanctions](https://www.financedigest.com/new-u-s-sanctions-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions for Russian bank, oligarchs, crypto miner BitRiver") list in future. We advised one client who was [considering making a loan to a Russian](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") museum to step away from the table,” he said. He said he was worried the artwork might get stuck there: “As Western sanctions multiply, we thought there was a real [risk that the client’s artwork might make a one-way trip to Russia and end up being expropriated by the government](https://www.financedigest.com/5-challenges-to-overcome-in-governance-risk-and-compliance-magazine.html "5 Challenges to Overcome in Governance, Risk and Compliance-Magazine") there. Reuters has not identified any incidents of this occurring. ‘RUSSIAPHOBIA’ Some [Russian art collectors and oligarchs are already keeping a low](https://www.financedigest.com/analysis-russian-gas-flow-too-low-to-fill-europes-storage.html "Analysis – Russian gas flow too low to fill Europe’s storage") profile in order to not draw attention to themselves. There’ll always be a market for strong pieces so that hasn’t changed but the collectors that I know, some of which are in Russia and some of which are in the West, are just keeping their heads down,” said James Butterwick, a dealer of Ukrainian and Russian art in London, who has repositioned his [business to focus more on Ukraine in recent years](https://www.financedigest.com/novartis-to-spin-off-generics-business-sandoz-next-year.html "Novartis to spin off generics business Sandoz next year"). I asked some Russians for loans, for exhibitions [next year](https://www.financedigest.com/start-up-etioca-eyes-nasdaq-listing-next-year-as-it-unveils-electric-taxi.html "Start-up Etioca eyes Nasdaq listing next year as it unveils electric taxi"), and they were very happy to give them, just anonymously. A London spokesperson for Phillips auction house said that while it does not hold a Russia-specific sale, it had stepped up its due diligence: “We are on high alert all the time and right now we are of course being extra vigilant. Earlier this month, Matthew Girling, the [former CEO](https://www.financedigest.com/mg-appoints-former-head-of-axa-investment-managers-andrea-rossi-as-new-ceo.html "M&G appoints former head of AXA Investment Managers Andrea Rossi as new CEO") of Bonhams, told the Art Newspaper that people should boycott Phillips, which is owned by Russians Leonid Friedland and Leonid Strunin. Friedland and Strunin also own the Mercury Retail Group, one of the [largest luxury goods retailers in Russia](https://www.financedigest.com/russias-largest-lender-sberbank-on-track-to-profitability-says-ceo.html "Russia’s largest lender Sberbank on track to profitability, says CEO"). Phillips, which [posted a statement in support of Ukraine on Instagram](https://www.financedigest.com/whats-the-best-time-to-post-on-instagram.html "What’s the best time to post on Instagram"), did not respond to a Reuters request for comment on the calls for a boycott. Phillips’ London [sale on March](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") 3 showed no signs of a hit to demand and the auction house said it donated the 5.8 million pounds ($7.59 million) it brought in from commission and buyer’s premium to the Ukrainian Red Cross. ($1 = 0.7641 pounds) (Reporting by Elizabeth Howcroft; Editing by Leela de Kretser, Grant McCool and Nick Macfie) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---