Brunello Cucinelli has adopted enhanced trade compliance procedures to monitor EU sanctions on Russia, following allegations from short seller Morpheus Research last September that the brand was selling luxury goods in Russia in violation of export restrictions — a claim the company has denied. Its board implemented a “strengthened trade compliance procedure” on December 10, after an external law firm conducted a risk assessment. Cucinelli maintains a Russian subsidiary accounting for less than 2% of global revenue and says it remains fully compliant with EU sanctions.

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