Grizzly Research Accuses Pirelli of Understating Russian Profits and Supplying Military

On June 4, 2026, short-seller Grizzly Research released a report alleging that Pirelli’s Russian operations generate a larger share of earnings than the company publicly acknowledges and that the tyre maker supplies tires to the Russian military. The report also references a similar short-seller claim made the previous month against German prosthetics firm Ottobock.

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Grizzly argues that investor perception of Russia as irrelevant is inaccurate, that the growth of the Russian business may be driven by demand from the Ukraine war, and that a tyre centre listed on Pirelli’s website in occupied Ukrainian territory serves the Russian military, with employees providing contact details to buyers aware of the end-user.

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After Moscow’s full-scale invasion of Ukraine in 2022, major tyre makers—Michelin, Continental, Goodyear and Bridgestone—exited Russia and recorded large write-downs. Pirelli subsequently said it would halt further investment, calling the market marginal to its global business.

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Grizzly’s analysis of Russian filings suggests about 10 % of Pirelli’s net profit comes from Russian operations, while the company reports only 6 % of revenue from Russia, the Middle East, Africa and India combined. Grizzly links the Russian business growth to demand generated by the Ukraine conflict.

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Pirelli reiterated its decision to cease further investment in Russia and stressed that Russian activities are a minor segment of its worldwide operations. The company emphasizes compliance with international sanctions and denies any intentional support for military use. Analysts note regulators may request additional documentation and shareholders could demand greater transparency, potentially prompting legal scrutiny.

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• “General investor perception seems to be that Russia is a rather irrelevant part of Pirelli's current operations,” — Grizzly Research, report author

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• “Our research portrays a different picture.” — Grizzly Research, report author

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• “We suspect this growth in the Russian business may be driven by demand from the Russian invasion of Ukraine,” — Grizzly Research, report author

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• “We found that the tire center in occupied Ukraine listed on Pirelli's website serves the Russian military, and that Pirelli's employees, aware that the buyer was purchasing tires for Russian forces fighting in Ukraine, shared contact details for placing an order.” — Grizzly Research, report author

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The report presents two conflicting quantitative claims: Grizzly’s analysis suggests 10 % of net profit stems from Russia, while Pirelli’s disclosures cite 6 % of revenue from Russia, the Middle East, Africa and India combined. Grizzly also alleges direct sales to the Russian military, a claim Pirelli has not addressed publicly. The methodology behind the 10 % figure is not disclosed, leaving a gap in verification.

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