Fewer wealthy Russians have been shopping in Italian luxury brand Salvatore Ferragamo's European stores, its CEO told CNBC, as the company feels the impact of the crisis gripping the region.
But Salvatore Ferragamo head Michele Norsa said the impact would likely be short term.
"I would say the impact has been quite limited in the first quarter because… the tension between Russia and Ukraine was just at the end of March. What we have definitely started seeing is less Russian and Ukrainian traffic in the European stores," Norsa told CNBC in a TV interview interview.
He added that it was not easy to measure the impact of the Ukraine crisis because the brand's wealthy Russian customers were dispersed across a number of European countries.
"Our expectation is really for a short-time impact since they have been one of the best consumers… in all of the countries, so we do expect a short-term effect," Norsa said.
The comments come amid heightened tensions in eastern Ukraine, where the army is fighting pro-Russian separatists who have occupied state buildings across the region. A United Nations report released on Friday warned of an "alarming deterioration" in human rights in the area.
The United States and European Union are trying to pressure Russia into dialing back its involvement in the political affairs of Ukraine by imposing economic sanctions that target banks and dozens of officials.
Uncertainty over potential future sanctions has led to cautiousness among Russians across Europe, and analysts warn the luxury sector could be hit as a result.