An art gallery where Princess Eugenie serves as a director has been cleared of breaching UK sanctions imposed on Russia. Hauser & Wirth, along with shipping company Artay Rauchwerger Solomons, had faced criminal charges over the sale of a painting to a buyer named Alexander Popov, whom prosecutors alleged was a Russian resident. The case matters because it was believed to be the first prosecution of its kind concerning luxury goods being made available to Russians under sanctions introduced after the invasion of Ukraine.

The painting, George Condo's Escape from Humanity, was made available to the dealer between April and December 2022. Judge Tony Baumgardner quashed the two charges, ruling that prosecutors had not produced sufficient evidence that Mr Popov was resident in Russia at the time of the deal. The prosecution stemmed from an HM Revenue and Customs investigation into the April 2022 regulation, which made it an offence to supply or make available luxury goods — from cars and caviar to art — to or for use in Russia.