Interview with Oleksandr Novikov about War & Art efforts spearheaded by the National Agency on Corruption Prevention (NACP) in Ukraine
centerforartlaw posted: " EDUCATION 1999-2004 – Yaroslav Mudryi National Law University. 2003-2004 – National Prosecution academy of Ukraine 2021-2022 – Kyiv-Mohyla Business School (KMBS). ADDITIONAL READING 'No Return to the Past:' The Man " Center for Art Law
Oleksandr Novikov is a man on a mission. In 2019, Oleksandr Novikov, an ex prosecutor, was elected as the Head of the National Agency on Corruption Prevention (NACP) in Ukraine, which investigates corruption in the Ukraine and prepares cases for prosecution. Under his leadership NACP launched War & Art Project in 2022. War & Art purpose is to assist art market participants in conducting due diligence and prevent illicit activities involving cultural property. The project identifies art owned by sanctioned individuals as well as catalogues cultural property losses suffered by Ukraine as a result of the ongoing Ukrainian war. Since Novikov has been in control the organisation has published one of the largest lists of artworks in a private collection. The organisation has hoped to use open databases of artworks, to prevent the circulation of art from sanctioned individuals and sell it and use the money to rebuild Ukraine.
The Interview:
Can you please provide a little bit of background on your current role and what led to taking this position.
After the Revolution of Dignity, Ukrainians demonstrated that they do not want to put up with corruption and injustice. Ukraine clearly chose its Euro-Atlantic vector of development. That is why, at the request of the Ukrainians, anti-corruption bodies were created in Ukraine. In 2019, following a competition and a round of interviews, I was appointed by the head of the updated NAСP — the body that forms the anti-corruption policy of Ukraine. Prior to that, I worked for 16 years in the prosecutor's office and was a member of international investigative teams investigating cybercrimes and a member of the Europol platform.
Oleksandr, how is your position staffed and why is it termed?
The Head of the NACP, in accordance with Ukrainian legislation, is elected for a term of 4 years without the right to re-election. This, in turn, also prevents potential corruption risks and gives motivation to make the most of these 4 years. During my time in office, we have shown significant results, digitizing almost all anti-corruption processes in the state, developing the Anti-Corruption Strategy until 2025,approved by the Parliament, and the Program for its implementation, approved by the Government. I am proud to say that we we have a strong team united by common principles and values.
What is NACP and why does it maintain lists of sanctioned persons and art works?
From the beginning of the Russian full-scale aggression against Ukraine in 2022, it became clear to the NACP team that we should not (and cannot) limit ourselves exclusively to our peacetime work. Everyone has to do their best for victory. After participating in the creation of the Individual Sanctions Roadmap by the Stanford International Working Group on Russian Sanctions, which defined the role of the NACP in the sanctions policy, our team began preparing lists of candidates for sanctions. More than 24,000 individuals and legal entities involved in the initiation and conduct of Russia's war against Ukraine were identified by todate. This is a powerful result. Unfortunately, there are too many culprits in the war, so the work continues.
Please discuss the mandate of NACP, how does it work with international counterparts, how do you receive/share information?
The process of identifying candidates for sanctions and the role of the NACP in this are defined in the Roadmap for Individual Sanctions prepared by the International Working Group on Sanctions against Russia (Yermak-McFaul Group), established at the initiative of the President of Ukraine.
Are you independent or part of the Ukrainian government structure or which department has oversight over your work?
The National Agency is a body of executive power with a special status. The creation of the National Agency was provided for by the Law of Ukraine "On Prevention of Corruption", adopted on October 14, 2014. Like the entire anti-corruption infrastructure in Ukraine, we are an independent body. In our actions, we are guided exclusively by the Law and the interests of the people of Ukraine. It is impossible to put pressure on us and it does not make any sense. In addition, the NACP is the only body in Ukraine that has undergone international evaluation. The report of the international commission noted that the Agency fulfilled most of the evaluation criteria.
What was the mobilizing factor that got you involved in this line of work?
The idea to create the War and Sanctions portal arose in the first weeks of Russia's large-scale invasion of Ukraine on February 24, 2022.
The first prototype of the portal was developed in March 2022.
The idea of the portal was to collect information about all sanctioned persons (both individuals and legal entities) who were sanctioned in connection with the war in Ukraine in one place.
What are your plans after NACP?
Now it is very difficult to plan something. A war started by Russia is currently going on against our country. The only thing we are all thinking about now is what everyone can do to bring victory closer. Time will tell where my experience and knowledge may be needed. But I know for sure that I will continue to do everything for the good of my country. I know that we still have a lot to work on and I believe that we will do everything and perhaps exceed both our expectations and the expectations of our partners. Ukraine will be free, strong, democratic and a state with good governance and integrity values.
Can you speak a bit about how you work with other departments and entities to collectively act on mitigating the devastation of Ukrainian art and culture?
If we talk about the team that generates the vision for sanctions policy, we directly cooperate with the Presidential Office. The NACP employees are members of the International Working Group on Sanctions against Russia (Yermak-McFaul Group), established at the initiative of the President of Ukraine.
As for the teams that implement the sanctions policy, the NACP cooperates with the National Security and Defense Council, the Security Service of Ukraine, the Cabinet of Ministers, the Verkhovna Rada of Ukraine, the Ministry of Foreign Affairs and, if necessary, other central executive authorities of Ukraine.
To ensure effective communication, the NACP employees are members of a number of working groups that coordinate actions on sanctions policy
Please describe the makeup of NACP, are you using any other models from other countries to run this entity?
From the first days of my work as the Head of NACP, I set the goal of building a state institution of a completely new model, where people work not "from 9 to 5", but on ideas and results. Where there is not just a "manager" and a "subordinate", but there are the best management standards, an effective team with common goals and values.
The NACP is the first body in the country that works according to the methodology of OKR - Objectives and Key Results. This is a methodology that allows you to set Ambitious Goals and plan measurable Key Results both for the entire organization and for each team member personally.
Also the NACP holds strategic sessions for the management team every year in order to synchronize and jointly find large-scale solutions that are a lever for changes in the country, to focus on development prospects and opportunities to overcome obstacles. In addition to the fact that this practice unites the team, it significantly increases work efficiency, synchronizes vision and actions, and takes the team to a completely new horizon and scale of thinking.
We are guided by the maximum digitalization of all internal processes and the development of common values of integrity, interaction, responsibility, development and ambition among the Agency's employees. This is exactly what brings us as close as possible to European work standards and further distances us from Soviet approaches.
How do you understand the term "sanctioned person" b/c the same person is not necessarily in all jurisdictions in the same way? Please describe the process of having someone become sanctioned
This is a person on whom a particular country or group of countries has imposed sanctions. Sanctions can be imposed on both individuals and legal entities. Sectoral sanctions may also be imposed.
Each jurisdiction separately determines the list of persons against whom sanctions should be imposed. Therefore, different jurisdictions may have different persons under sanctions. One of the challenges facing Ukraine in its sanctions policy is to synchronize sanctions between different jurisdictions. If one jurisdiction imposes sanctions on a certain person, then other jurisdictions should also impose sanctions on that person. The NACP has developed tools for this purpose on the War and Sanctions portal.
If we briefly describe the process of sanctioning a person, first, the targets are identified - persons who cooperate with the terrorist regime of Russia, materials confirming this cooperation are collected, the lists are sent to the NSDC for approval, the NSDC decides on the imposition of sanctions, this decision is approved by a decree of the President of Ukraine
Have you reached out to any outside/inside art market participants to collect data for the War & Art Database?
Yes. In all its projects, the NACP team tries to involve a wide range of stakeholders. The same applies to the War & Art project.
Do you have art experts working in War & Art project? If so, do they work as part of the team or do they work as outside advisors/consultants?
Yes, we do. Several NGOs specializing in art and cultural values cooperate with us, as well as art market experts, technical officers, attorneys. There are also journalists who prepare materials on this topic who cooperate with us.
What is the purpose of the War & Art Database?
One of the main goals of the War & Art database is to make public information about works of art owned by oligarchs under sanctions.
How is content selected and added there?
Information is sought on persons under sanctions. First of all, the NACP employees and NACP partners search for such information in open sources. The information found is added to the database. The information found also allows expanding the search. For example, such information can be obtained from art catalogs or from art market participants
What other resources do you want to provide to the domestic and international visitors to your site?
On the War & Art portal, we have developed the Resources section, where we post useful information related to the art market that can help site visitors find information about art objects or learn about the damage that Russia has caused to Ukraine's cultural heritage.
Are you able to use grassroots resources to help find and process data for the database?
Yes. We urge everyone to join the search for information about the works of art owned by Russian oligarchs under sanctions
What other industries does NACP consider/target? (related/unrelated to the art market)?
The NACP examines all sectors of the economy that can be used by Russia and its citizens to avoid sanctions. If the NACP finds evidence that a particular industry is being used to avoid sanctions, our team begins to work more deeply on that industry to identify specific targets for sanctions.
What are your expectations from the database?
First of all, we want all art market players to follow the example of the NAPC. We want art market players to make public information about art objects purchased by Russian oligarchs under sanctions
What improvements do you expect to make?
We are planning to scale up. Currently, our database contains a little over 600 art objects owned by Russian oligarchs under sanctions. We want to bring this number up to several tens of thousands. To do this, we need to expand the circle of partners who will help us fill the database
What have you learned about the international art market specificities that distinguishes it from the other industries?
The first thing that caught our eye was that the art market is a closed market. If you want to know what art objects Vladimir Putin, or the Rothenberg brothers, or Roman Abramovich, or other Russian oligarchs, officials, or propagandists who are under sanctions, own, you will not be able to get this information because it is not freely available.
Are you getting information from non-affiliated third party sources?
On the War & Art portal, we have developed a functionality that allows you to report art objects owned by Russian oligarchs who are under sanctions. So anyone can send this information to the NACP
How do you verify information?
Information is verified by obtaining it from several sources and comparing it with each other. We are also assisted in verifying information by experts from the art industry
Please describe the process of adding people to sanctioned persons list?
In fact, we have divided all possible candidates for sanctions into groups: oligarchs, government officials, security and military officials, judges, propagandists, etc. Among these groups, we prioritize and select those individuals who have the greatest influence on Russia's economy and politics. These individuals become priority candidates for sanctions
Please describe the process of freezing assets of sanctioned persons? What does it mean for the art market participants -agents, dealers- when approached by the persons on the list or their representations? What about their family members?
Freezing means that it is impossible to perform certain actions in relation to the asset that has been frozen. In the case of art objects, this means, first of all, buying and selling such an [art] object.
What are the expectations ofNACP, vis-a-vis art collections of a sanctioned person? Are you seeing efforts to move these assets or is there a standstill with objects remaining with auction houses, storage facilities, conservation labs, borrowing institutions, that can neither return nor otherwise dispose of the frozen property?
After confiscation, art objects must be sold. There will definitely be buyers for these art objects
What do you want the members of the Trade to keep in mind when approached by agents of the sanctioned persons
Art market participants should remember their reputation first and foremost. Reputation is the most important advantage of one art market participant over another. And if you lose your reputation, you can easily lose your advantage in the art market. And nowadays, reputation in the art market can be easily lost if a representative of the art market works with bloodied Russian money
How much input can you give to add new names to the list of sanctioned persons? In Ukraine? Abroad?
This contribution is already available on the War & Art portal, which contains information about more than 600 art objects. The value of just a few dozen of these art objects is 2.1 billion US dollars.
With new individuals being added to the list of sanctioned persons, for example, Potanin who was added to the list by the US in December 2022, what does it mean for your work?
We know that Mr. Potanin likes to collect artifacts related to the Olympic Games. If someone provides a list of objects in his collection, we will definitely add this information to our database
In October of 2022, Art Net reported that a British citizen GRAHAM BONHAM-CARTER was indicted for attempting to move a work of art belonging to Oleg Deripaska, a person sanctioned by multiple jurisdictions from the United States into the United Kingdom. In your opinion, is this an exception to the rule or are there still many efforts to help circumvent sanctions?
Without a doubt there are ongoing efforts to avoid sanctions. Our goal is to make it so difficult that sanctioned persons would rather change their regime from the inside.
Are you receiving tips from the members of the trade, or disgruntled colleagues about location of art collections subject to seizure and perhaps forfeiture?
Yes, we are.
Does it matter that a sanctioned person can transfer property to their family or associates and thus circumvent the regulations?
Yes, this is a way to circumvent sanctions when a person who has not yet been sanctioned, but is under threat of sanctions, transfers his property to his children. Here again, we can cite the example of Roman Abramovich. This can be combated by applying sanctions to relatives of the sanctioned person.
What happens or will happen with the proceeds from the sale of forfeited property?
The funds will be used to compensate Ukrainian citizens for damages and to restore the destroyed and damaged infrastructure.
Do you have information about national collections that have been severely affected by the war looting?
A lot of paintings were burned in the Archip Kuindzhi Art Museum in Mariupol. The Russians took about ten thousand paintings from the Kherson Art Museum, as well as valuable literary and scientific books from libraries. Such crimes are very typical for Russia.
Understand, this is not a simple theft or looting. This is a war crime under the Hague Convention of 1954, as it is aimed at the destruction of national identity.
Please describe how assets of sanctioned persons can be used to help Ukraine with reconstruction purposes?
Damage to Ukrainian people and our national infrastructure and economy as a result of this war is considerate. Frozen assets from the aggressor nation should be used to help reconstruct the country they have thus damaged. Anything that is a luxury item, buildings, vehicles, stakes in companies - all of this should be confiscated from those who have been prolonging and promoting this war, individuals and companies that have been sanctioned
How long do you expect the DB and the website of War & Art to operate? Will it be in operation after the end of the war? Will it play a role in the work of the Special Tribunal?
The War & Art database and website will exist for as long as necessary. It is not necessary to wait for the Special Tribunal to be established in order to use the information posted on the website and to begin the process of freezing the assets of Russian individuals and legal entities. You need to do it now. And the following processes have been initiated
What kind of assistance do you receive and would expect to receive from the high-value art market?
The first thing that will help us is for art market participants to follow the example of the NAPC and make public data on all art objects purchased by Russians under sanctions. Because the fact that information about art market transactions is hidden helps Russia, not Ukraine, in the first place.
The second thing that will help with the confiscation of art objects from Russian oligarchs under sanctions is to establish the location of these art objects. I think an effective mechanism would be to create a system of rewards for reporting the location of an art object.
The third thing that will help is to block any actions with art objects owned by Russian oligarchs under sanctions. Auction houses should not conduct sales of such objects. Galleries and museums, if they exhibit such art objects, should not return such art objects to Russian oligarchs under sanctions. During the transportation of art objects, the countries through which such art objects are transported should stop such transportation and seize the art objects. Insurance companies should stop insuring such art objects.
Another thing that can help is the creation of a global registry that will record transactions for the sale, transportation, and insurance of art objects whose value exceeds a certain set amount. Countries should sign an agreement on the creation of such a registry and undertake to require representatives of the art market in their countries to enter information about such art objects into this registry
What is the purpose of the sanctions, and who has imposed them?
The purpose of the sanctions imposed on Russia, Russian oligarchs, companies, and propagandists is to deprive Russia of the resources it needs to wage war.
Many countries have imposed sanctions against Russia. These are EU countries, the United States, Canada, the United Kingdom, Japan, Australia, Japan, and others.
How are the sanctions enforced, and what legal or regulatory framework supports them?
Many countries have laws that allow them to impose and enforce sanctions. These laws provide governments with the legal authority to freeze assets, restrict trade and take other measures against sanctioned entities. For example, Ukraine applies sanctions on the basis of the Law of Ukraine "On Sanctions".
How do the sanctions align with international standards or agreements?
Sanctions are designed to comply with international standards and agreements to ensure their legality and effectiveness.
When sanctions are imposed by the United Nations Security Council, member states are expected to comply with these measures because they are legally binding.
Regional organizations such as the European Union also have mechanisms for imposing sanctions. These sanctions must be consistent with the organization's goals and values.
In general, the aim is to ensure that sanctions are proportionate, justified and in line with international norms, and that they encourage the desired changes in the behavior of the targeted entities.
What measures are being taken to ensure transparency and fairness in the sanctioning process?
Several measures are usually taken to ensure transparency and fairness in the sanctions process: A clear legal framework that defines the criteria for imposing sanctions. Publicity. Countries that impose sanctions provide clear and public information about the reasons for imposing sanctions on individuals or legal entities. Accountability. Countries responsible for imposing sanctions are accountable for their decisions and actions. This may include parliamentary oversight, reporting requirements, and accountability mechanisms.
What is the purpose of the database?
The purpose of a War & Art database is to provide a centralized and easily accessible source of information about artworks owned by individuals that are subject to sanctions.
The War & Art database helps ensure transparency by making information about artworks owned by sanctioned individuals available to the public, businesses, financial institutions, and government agencies.
Businesses, financial institutions, and individuals can use the War & Art database to check whether they are dealing with sanctioned parties. This helps them avoid inadvertently engaging in transactions that violate sanctions.
How are artworks selected for sanctioning, and what criteria are used?
If we identify that an art object has been acquired by a sanctioned person and the art object is added to our database
How is the data in the database collected and verified?
Information is verified by obtaining it from several sources and comparing it with each other. We are also assisted in verifying information by experts from the art industry
What are the effects or consequences of sanctioning for the artists, owners, and the broader art community?
First and foremost, it is reputational damage. Artists and the wider artistic community may suffer reputational damage if they have collaborated or are collaborating with sanctioned Russian oligarchs.
Owners of artworks will face problems with the use and sale of such artworks.
The sanctions may create uncertainty in the art market and lead to a decrease in demand for artworks associated with sanctioned persons. This may affect prices and the overall market.
How can individuals or institutions appeal or contest a sanction?
Individuals or legal entities subject to sanctions may contact the governments of the countries that imposed the sanctions and express their concerns.
What recourse, if any, do owners have if their work is sanctioned?
If a work of art is sanctioned, owners may consider legal advice, appealing or protesting the sanction, negotiation, documentation, legal action, engaging diplomatic channels, and raising public awareness. However, options vary depending on the jurisdiction and circumstances
Can you provide an example of specific details about a particular piece of stolen artwork?
Let's go back to the Kherson Art Museum, from which about 10,000 paintings were taken. During the robbery, Russia did not make an inventory of what it stole, so it will be difficult to find the stolen items, because not all of them will end up in Russian museums. Some may be lost during transportation, some may be stolen again when they are taken over by a Russian museum. Employees of the Kherson museum monitor the media space and have already identified several stolen paintings in the temporarily occupied territory of Crimea, which were seized by Russian terrorist forces
Can you provide examples of artworks that have been sanctioned, and explain why?
Germany has confiscated 30 paintings from Russian oligarch Alisher Usmanov that were on his yacht. Among these paintings was a Chagall painting worth approximately $5 million. France confiscated the paintings of Russian oligarch Pyotr Aven when they were on display in France
What procedures are in place to recover stolen artwork?
First of all, it is necessary to create a register of stolen works of art and other cultural property. We are grateful to ICOM for creating the Emergency Red List of Cultural Objects at Risk for Ukraine and helping law enforcement officers be on a look out for looted art from Ukraine.
Are there any success stories of recovered artwork that you can share?
Yes. There are multiple pieces that Ukraine has returned. In fact, there have been collections of objects which Ukraine has been successful in returning. The most illustrative example here is the Scythian Gold. Russia wanted to take this priceless collection, which was exhibited in the Netherlands, demanding that it be returned from the loan to Crimea, which Russia had already temporarily occupied at the time. We objected and fought this attempt in court and now the so-called Scythian gold returns to Ukraine.
How can individuals or institutions report stolen artwork?
There are several ways to do this. First, anyone who wants to report information to the NACP about stolen artworks or art objects owned by sanctioned persons who have been sanctioned can fill out the appropriate form on the War & Art website. You can also send an email to the NACP to the address posted on the NACP's official website
Are there any common themes or characteristics among the sanctioned artworks?
In fact, the works in our database are quite different. Common theme, they are or have been owned by sanctioned individuals.
What has been the public reaction to these sanctions, and how have they been communicated?
Yes, we have received feedback and input from the members of the art trade. There has been some media coverage too. We are making improvements and updates regularly. Whats more, after we launched the War & Art portal, a few days later it came under a cyberattack. So it definitely attracted the attention of those in our database.
Is the database accessible to the public?
Of course, the objective of this project is transparency. We hope all art market participants will use the database to conduct their due diligence and if they find information that needs to be corrected (or added), they are welcome to reach out to us.
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