Italian regulators have launched an investigation into luxury cashmere brand Cucinelli for allegedly continuing to sell high-value goods in Russia in violation of EU sanctions. The report, published by Italian media, claims the company has maintained operations in the country despite the EU’s restrictions on business dealings with Russia following its invasion of Ukraine. This comes as international pressure mounts on firms to comply with sanctions, which have been in place since 2014 and expanded in 2,015 after Russia’s annexation of Crimea and its ongoing conflict in Donbas.
The allegations against Cucinelli, which is known for its handcrafted cashmere products, suggest that the company may have ignored the EU’s export restrictions, which prohibit the sale of luxury goods to Russian entities. Industry experts warn that such actions could result in severe penalties, including fines or potential exclusion from EU markets. The investigation reflects the broader challenges faced by luxury brands in navigating international trade laws and geopolitical tensions.
Cucinelli, a family-owned company based in Perugia, Italy, has not yet commented on the allegations. However, the brand has previously stated its commitment to compliance with international regulations. The case raises questions about the effectiveness of sanctions enforcement and the challenges of maintaining global business operations while adhering to political and legal restrictions. As tensions between the EU and Russia continue, companies are under increased scrutiny to ensure their practices align with diplomatic and economic policies.