“This is very painful. I have 2 million euros worth of merchandise in the warehouse, and if they cannot pay for it, I will be on my knees,” said D. Exterior owner Nadia Zanola, surveying the warehouse for the brand she founded in 1997 from the knitwear company created by her parents in 1952.

Fine Italian knitwear packed in boxes addressed to retailers in Moscow, St. Petersburg and Kursk sit stacked in a Lombardy warehouse awaiting dispatch. Although not subject to sanctions to punish Russia for invading Ukraine, the garments are not likely to ship any time soon, AP reports.

Missing payments from the Russian retailers who ordered the garments are piling up due to restrictions tied to the banking sector, putting pressure on small fashion producers like D. Exterior, a high-end knitwear company with 50 workers in the northern city of Brescia.

“This is very painful. I have 2 million euros worth of merchandise in the warehouse, and if they cannot pay for it, I will be on my knees,” said D. Exterior owner Nadia Zanola, surveying the warehouse for the brand she founded in 1997 from the knitwear company created by her parents in 1952.

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 97 billion euros ($101 billion) in annual revenue, it is a significant slice of business for some of the 80,000 small and medium companies that make up the backbone of Italian fashion, according to industry officials.

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