In brief

  • Geopolitical shifts are reshaping the art market, influencing collectors’ decisions on buying, selling, lending, storage and legacy planning.
  • Cross-border ownership and movement of art require careful consideration of sanctions, tax, provenance and competing legal frameworks.
  • Art loans, exhibitions and cultural philanthropy call for early planning around political sensitivities, reputational risks, security and contractual protections.
  • This article discusses the legal and practical considerations for collectors and cultural philanthropists operating in an uncertain geopolitical landscape.

Why geopolitics matters in the art world

Great art is often political. Consider the recently displayed Bayeux Tapestry: its impact works in both a historical and contemporary context. As you walk the 70 metres of the tapestry, you travel with the protagonists back and forth over the English Channel (or La Manche, depending on your preference), drawn into a world of court diplomacy, power shifts and ambition.

Though by no means certain, it is believed to have been embroidered by English women weavers and possibly commissioned by Bishop Odo of Bayeux (William’s half-brother) — an external projection of political might. Given the circumstances, a commission arrangement is likely to be too generous a description of the contractual terms.

On some readings, particularly in the margins, the content is earthy and subversive — with glimpses into a woman’s lot at that time. At its most obvious, the narrative is a trajectory leading to William’s conquest, with the final sections missing from the piece: a clear statement of rule to all those who could read the Latin, and a visual rendering for the majority who could not.

To this day the Tapestry continues to cause ripples- and the list under discussion is extensive- the act of the loan from France to the UK, its transportation, the fragility and conservation of the work, access and cost to the exhibition, the manner and place of display, the time you can spend in the gallery and what it could augur (or not) for movement on unresolved debates around other cultural property such as the Parthenon Marbles. All these points continue to be hotly debated in the wider press- the object has a magnified significance and becomes totemic of wider political tensions and issues.

Artworks can find themselves unwittingly caught up in political turbulence war and occupation as objects of value. Aside from targeted attacks on cultural sites, portable artworks and cultural artefacts continue to remain displaced and globally adrift. For example, looted objects from Nazi occupation continue to surface and often find themselves in the centre of title disputes, complicated by inter-family disputes, competing laws and jurisdictions, hindered by the elapse of time. We have worked with families seeking to recover artworks or sale proceeds, (and also good faith purchasers who have been caught up in these circumstances) where artefacts have appeared out of private collections in auction and on public display many years later.

How geopolitical events are changing the art market

Stasis in the flow of the business of art, or a sudden shift in market behaviour, is often an early warning sign for wider financial uncertainty triggered by the shock of world events. As part of the luxury asset sector, this is unsurprising.

How collectors are responding to political and economic uncertainty

On an individual level, collectors’ psychology and approach to buying or selling art may change. This can manifest in a number of ways:

  • Stasis — neither buying nor selling artworks — which can be led by wider circumstances of capital flow, economic cooling or liquidity. This can feed an appetite to play the longer game, i.e. retaining art collections to assess any changes in value.
  • Collectors see this “downtime” as an opportunity to loan artworks to institutions, which, in the right circumstances, can elevate the standing of the collection or artwork. Alternatively, artworks can be used as assets for security-backed lending. By doing this, collectors retain title in the artwork and release liquidity for other projects. There has been an increased appetite in this area.
  • A change in approach to artworks to be acquired or sold by the collector — for example, some collectors working at the top level choose blue-chip artworks as safer investments. These are artworks with established due diligence histories and are more likely to maintain value, as opposed to less “safe” options where there have been contractions in the market. There have also been some reports of collectors pivoting to smaller domestic works or ceramics — objects that are more portable and, on a practical level, do not require significant storage arrangements.
  • Favouring different jurisdictions for sale, purchase or exhibition due to concerns around security or political volatility that could lead to sanctions, tariffs, increased tax exposure, or delays in movement, which could also impact contractual arrangements.
  • Greater thought being given to how artworks are legally held and where; life-time legacy planning; and the appetite for ownership among subsequent generations. This is particularly so where a collection is split across jurisdictions, which may be subject to different political regimes and/or climatic instability.
  • Heightened utilisation of art storage facilities and use of freeports.

Art Market behaviour

Changes in collector behaviour, combined with world events and political decisions, have translated into how the art market operates. By way of example, in 2022, in the wake of the invasion of Ukraine and the Russia-Ukraine war, Russian Art Week saw Christie’s, Bonhams and Sotheby’s cancel Russian art sales due to the imposition of sanctions regulations — a direct relationship between external world events and the art market. More broadly, the art sector now operates within a regulatory framework and has to be careful to adhere to sanctions and anti-money laundering regulations. There has been a focus by authorities on enforcement, with some cases being brought, such as R v Oghenochuko Ojiri (discussed previously) and R v Hauser & Wirth Gallery Limited & Artay Rauchwerger Solomons Limited [2026] EWCR 7 (previously commented on here). 

The headwinds of Brexit and consequent trade hurdles were keenly felt across the UK art sector, which remained resilient but is now a leaner and tougher market. Spin-off commentary pitted Frieze London against Art Basel Paris on issues spanning quality, attendance and purchasing power, and parallels will probably still be drawn this year. In this ever-changing global environment, art fairs have had to be nimble. For example, facing regional conflict, Art Dubai reconfigured its offering in 2026 and downsized to have a greater focus on gallerists from the MENASA territories. In these ever-changing global circumstances, collectors and dealers have to adapt and navigate cross-border logistics and storage, shifting supply-chain models, admission protocols, tax and changing VAT regimes.

Art loans, exhibitions and cultural philanthropy in a changing world

Owners and collectors are often also culturally engaged within the art world as trustees, donors and lenders to institutions. As with the commercial world, changes in global politics can have an impact on board or funding dynamics, such as the imposition of sanctions, which has affected funding decisions. In times of political uncertainty, social media and instant public debate, those involved on either side of lending or borrowing art, and cultural philanthropy, also need to give thought to those arrangements and the broader impact they may have on either party.

On loans, prior to agreeing terms, it is wise for both lending and borrowing parties to consider the wider cultural context of an exhibition and whether there are any controversial elements that may need to be managed or factored into the terms of an agreement. For example, security, exhibition sponsors, and the inclusion of politically sensitive or highly prominent works that could be a target for attack or political demonstration all require a careful approach, alongside early discussions on insurance, location and physical protection. If an exhibition is due to tour internationally, could the artwork potentially be seized, and what laws or legal protections are in place?

Art, collecting and geopolitics: key takeaways

It can be no surprise that artwork and cultural property play an active role in our political and societal narrative. Political shifts and geopolitical events have a direct impact on the commercial and public business of art, affecting movement, value and appetite for market engagement.

How Mishcon de Reya can help

Our Art Law team advises collectors, family offices, institutions and cultural philanthropists on the full lifecycle of art ownership, from acquisition and lending through to succession and legacy planning.

We provide strategic advice on provenance, title disputes, sanctions, cross-border movement, tax, ownership structures, security-backed lending and reputational risks, helping clients navigate the legal and practical challenges that can arise in an increasingly complex geopolitical environment. We also support lenders, borrowers, trustees and donors in structuring exhibitions, loans and philanthropic arrangements that protect both cultural and commercial interests.