In March 2022, Pirelli announced a suspension of investments in Russia and donated 500,000 euros to support Ukraine. In May 2025, American research company Grizzly Research published a report that questions how far this "exit" has actually gone.
What the analysts found
Grizzly Research, which announced a short position on Pirelli shares, bases its accusations on Russian corporate registries and results of covert investigation. According to their calculations, approximately 10% of the company's net profit is still being generated in the RF — while in Pirelli's quarterly report, Russia is not highlighted separately at all, but is included in the region "Russia, Middle East, Africa and India," to which collectively less than 6% of revenue is attributed.
An even harsher detail from the report: Pirelli's tire center on the occupied territory of Ukraine — in Donetsk — continues, according to Grizzly, to service Russian military. The company left the address of this center on its official website.
"During our covert investigation, we found that the tire center on the occupied territory of Ukraine listed on Pirelli's website serves Russian military."
Grizzly Research, 2025 report
A structure that hasn't disappeared
To understand the scale, context is needed. Pirelli entered the Russian market back in 2011-2012 through a joint venture with state conglomerate Rostec — the very same one that produces weapons. Plants in Voronezh and Kirov at their peak produced about 10% of the company's global tire production. In 2022, Pirelli announced "gradual limitation of activities" — but not closure. The Voronezh plant continues operating.
Additional complexity stems from ownership structure. Chinese chemical giant ChemChina controls approximately 37% of Pirelli. Grizzly analysts note that this complicates any real exit from the Russian market and creates potential security risks for NATO countries, where Pirelli is a supplier.
Market and company reaction
Following the report's publication, Pirelli shares fell on the day the material was released. The company has not yet officially responded to Grizzly's specific allegations about Donetsk and the discrepancy between declared and actual revenues from the RF.
It is important to understand the nature of the source: Grizzly Research profits from falling stock prices of companies it criticizes. This does not make the report false — but it means that every statement requires independent verification. Pirelli has yet to provide alternative figures with independent audit.
If Pirelli does not disclose the full structure of RF revenues with verified audit by the end of the quarter — the question of whether the "investment suspension" is a real exit or merely a change in reporting nomenclature will remain open for EU regulators, who are already reviewing sanctions exemptions for companies with operations in Russia.
