Russian sanctions hurting small Italian fashion producers

By COLLEEN BARRY
AP Business Writer

BRESCIA, Italy (AP) — Small Italian fashion producers are still allowed to export to Russia despite sanctions, as long as the wholesale price is under 300 euros. But they are having a hard time getting paid due to restrictions tied to the financial sector. Italy is the largest producer of global luxury goods in the world, making 40% of high-end apparel, footwear and accessories. While Russia generates just about 3% of Italian luxury’s $101 billion in annual revenue, industry officials say it is a significant slice of business for hundreds of small and medium Italian fashion companies that cater to Russian customers.