Russian Oligarchs Evaded U.S. Sanctions in Multimillion-Dollar Art SchemeThrough shell companies, sanctioned Russians bought high-value art in violation of U.S. sanctions Adam Kredo - JULY 29, 2020 11:00 AMRussian oligarchs evaded U.S. sanctions by trading in high-value art in a scheme that has helped them move tens of millions of dollars out of America and back to Moscow, according to findings published Wednesday by Congress’s Permanent Subcommittee on Investigations.
Shell companies linked to Russian businessmen Arkady and Boris Rotenberg have conducted nearly $100 million in art transactions since the two were sanctioned by the Obama administration in 2014, according to the committee’s findings. These deals were facilitated by a U.S. business associate and conducted via private art sellers, as well as high-profile auction houses such as Christie’s and Sotheby’s. Senate investigators said the Rotenbergs, who have close ties to Russian president Vladimir Putin, used the secretive nature of the American art market to hide their role in the transactions and ultimately move millions back to Russia.
The Senate’s two-year investigation was sparked by concerns that U.S. sanctions on Russian oligarchs had not been effective in containing their empires. Transactions were hidden in a web of shell companies that enabled the Rotenbergs to avoid detection by U.S. authorities. Congress is now determining whether there is enough evidence to prosecute the Russian and American businessmen involved in the scheme. The findings could also spur regulation of the art industry, which is largely exempt from U.S. banking and transparency laws requiring that transactions be fully documented to prevent laundering.
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https://freebeacon.com/national-security/russian-oligarchs-evaded-u-s-sanctions-in-multi-million-dollar-art-scheme/
