Boris Rotenberg

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Arkady Rotenberg

The press service of the President of Russia

Trapped under U.S. sanctions Russian billionaires and “friends of Putin” – the brothers Arkady and Boris Rotenberg have found a way to circumvent American laws and to launder millions of dollars in the art market, writes The Wall Street Journal, citing an investigation the U.S. Senate. Themselves Over such accusations.

According to the American senators, conducted the investigation for two years, two months after the introduction of individual sanctions in 2014, the Rotenberg brothers bought 10 paintings for $ 6.8 million at Sotheby’s. Among them was the painting of the Cubists Georges Braque and the work of Marc Chagall.

A few days later they bought for $ 7.5 million from another dealer the painting of Rene Magritte. And since the imposition of sanctions, Rotenberg could spend or put 91 million dollars, including 18.4 million dollars on art.

The main billionaires used a loophole – a much more lenient attitude auction houses to establish the true owners of art objects, writes the WSJ. So, in 2019, after calling the Senate’s investigation of their representatives, auctions Sotheby’s and Christie’s fought for the right to exhibit the painting “Bridge-2” Lionel Feininger. Winning this right is Christie’s was satisfied with the explanation of the representative of the Ministry denied that the picture belongs to the company from the Marshall Islands. Real buyer for the painting, estimated at $ 5 million, in the end is not found, and it was withdrawn from the auction prior to bidding.

Christie’s, Sotheby’s and smaller London houses, Phillips and Bonhams said in the course of the investigation that support the “zero tolerance” approach to violations of the sanctions. However, this did not prevent them to claim that they don’t know about the connection with the Rothenberg living in Russia art dealer Gregory (Gregory) of Balzer. Last year he gave an interview to the Russian Forbes.

While the WSJ says that an employee of Sotheby’s back in 2012 told the leadership about the relationship of Balzer with Rothenberg.

Meanwhile, the website of the art dealer proposed an influential collectors services transactions while preserving their anonymity.

Balzer’s lawyer claims that he had Affairs with billionaires, and that the investigation effectively put an end to his business. A representative of Rotenberg called the accusations “absurd”, saying that they never used any tools, including art, for money laundering or sanctions busting, says The Bell.

“We know that auction houses and dealers don’t always want to know who the buyer is because they make a lot of money, but in this case it is about national security, about the work of the sanctions,” – said one of the initiators of the investigation, Republican Senator Rob Portman.

According to the Senator, to the investigation, it pushed the idea that “sanctions don’t seem to work.”

The sanctions prohibit companies based in the United States, to enter into any financial transactions included in the black list of persons. The Americans involved in transactions with Rotenberg and other people from the sanctions lists, can face heavy fines or even prison terms.

That deals with objects of art can become a “loophole” for corrupt officials, you know, in the European Union. There in 2018 has made changes to laws to combat money laundering by requiring companies to check the identity of sellers and buyers of art objects worth more than 10 thousand euros.

In the report of the Senate recommendations for legislative amendments in this direction.

68-year-old Arkady Rotenberg and his brother Boris, a longtime friends of Russian President Vladimir Putin. During his school years together they were engaged in Sambo and judo have the same coach. Arkady Rotenberg said that his friendship with the President “time proven”. The businessman made a fortune of almost three billion dollars, being the “king of order” and engaging in implementation of large-scale infrastructure projects. The son of Arkady Igor and his uncle Boris are a successful business in the energy and real estate.

As the WSJ notes, is still about the passion of Rothenberg art was not known almost nothing. But the brothers often attended sports events – hockey games and competitions in judo.