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What is the Luxury Goods Ban, and what does it mean for the art market, including your business?

Luxury Goods Bans were introduced by multiple jurisdictions in the wake of the Russian invasion of Ukraine. Major art markets impacted include the US, UK, EU and Switzerland, all of which are covered in this overview.

Important note on the destination of luxury goods
The bans apply to both Russia and Belarus. Where you see “Russia” named in this article, please assume that Belarus is also included.

Overview

It is not permissible to send art to Russia or another location if the art’s ultimate destination is Russia. Whereas the US does not specify a value, minimum values apply in the UK (£250), EU (€300) and Switzerland (300 CHF). The UK goes a step further, making it illegal to make luxury goods available to a person “connected with Russia”.

United Kingdom

On 14th April 2022 at 5pm, the luxury goods ban came into effect (see The Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022). Works of art with a sales tag of £250 (excl. VAT) fall under the ban.

The legislation specifies:

46B.—(1) The export of luxury goods to, or for use in, Russia is prohibited.

(2) A person must not directly or indirectly—
(a)supply or deliver luxury goods from a third country to a place in Russia;
(b)make luxury goods available to a person connected with Russia;
(c)make luxury goods available for use in Russia.

The phrase “connected with” is key for Art Market Participants in the UK. The legislation (Regulation 21) states:
(2) For the purposes of this Part, a person is to be regarded as “connected with” Russia if the person is—
(a) an individual who is, or an association or combination of individuals who are, ordinarily resident in Russia,
(b) an individual who is, or an association or combination of individuals who are, located in Russia,
(c) a person, other than an individual, which is incorporated or constituted under the law of Russia, or
(d) a person, other than an individual, which is domiciled in Russia.

The first two points above refer to individuals (not businesses). The term “ordinarily resident” is defined in Regulation 21: “For the purposes of these Regulations, a person is ‘ordinarily resident’ in a country if that person has been present in that country, or in that and one or more other countries, for a time period amounting in aggregate to at least 180 days in any period of 365 days.” 

The second two points refer to businesses (not individuals). Distinct from the point about incorporation or or constituted under Russian law, the term “domiciled” refers to where the entity is managed and controlled, thereby capturing foreign-incorporated companies that operate from Russia.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

  • stop dealing with them
  • freeze any assets you are holding for them (and submit an annual frozen asset report to OFSI)
  • inform OFSI as soon as possible by either emailing ofsi@hmtreasury.gov.uk or by calling their general enquiries line: +44 (0)20 7270 5454

More detailed information on OFSI’s approach to compliance and enforcement can be found in Chapter 7 of OFSI’s guidance.

See references below. 

United States

On March 11, 2022, President Joseph Biden issued Executive Order (EO) 14068. This was implemented via regulations issued by the Department of Commerce’s Bureau of Industry and Security (BIS). There is no minimum sales tag threshold for U.S. luxury goods. 

The Executive Order states:

(ii)   the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of luxury goods, and any other items as may be determined by the Secretary of Commerce, in consultation with the Secretary of State and the Secretary of the Treasury, to any person located in the Russian Federation.

“Person” refers to an individual or entity, with the latter referring to a partnership, association, trust, joint venture, corporation, group, subgroup, or other organisation. Notably, “United States person” refers to a US citizen, lawful permanent resident, entity organised under the laws of the United States or any jurisdiction within the US (including foreign branches), or any person in the US.

See references below. 

European Union

On 15th March 2022, the luxury goods ban came into effect (see COUNCIL REGULATION (EU) 2022/42, amending Regulation (EU) No 833/2014). Works of art with a sales tag of €300 (excl. VAT) fall under the ban.

The amendment states:

Article 3h

1. It shall be prohibited to sell, supply, transfer or export, directly or indirectly, luxury goods as listed in Annex XVIII, to any natural or legal person, entity or body in Russia or for use in Russia.
2. The prohibition referred to in paragraph 1 shall apply to luxury goods listed in Annex XVIII insofar as their value exceeds EUR 300 per item unless otherwise specified in the Annex.

There is a useful Q&A article on Europa.eu. Questions 6&7 address cultural cooperation between Russia and EU, for example the prompt return of luxury goods that are on loan in the EU.

See references below. 

Switzerland

On 25th March 2022 at 11pm, the luxury goods ban came into effect (see Ukraine: Implementation of further EU sanctions). Works of art with a sales tag of 300 CHF (excl. VAT) fall under the ban.

The only difference from the EU legislation is that the triggering value is in Swiss Francs instead of Euros.

See references below. 

REFERENCES: 

United Kingdom 

United States of America 

European Union 

Switzerland


Hauser & Wirth accused of breaching Luxury Goods Ban in the UK (2025)