A decision by the Venice Biennale to allow Russia to participate in this year's event came under fire from the European Union on March 10, which warned it could cut funding.
"We strongly condemn the decision" and are looking at taking action, including suspending an EU grant to the organizing body, two top members of the European Commission said in a statement.
The wrath from Brussels follows the Bienniale last week saying it would allow Russia to take part in this year's Venice exhibition, a key event on the global cultural calendar, which goes from May 9 to Nov. 22.
Russia's participation would provide a prominent platform for soft power flexing at a time that it is pursuing its war against neighboring Ukraine.
Kiev last weekend called on the Biennale to reverse its decision and to exclude Russia, as it had done at the last two Venice art exhibitions, in 2022 and 2024.
Italy's government has also opposed the Biennale's move, saying it was made "entirely independently" of Rome's wishes.
The EU has imposed 19 rounds of sanctions on Russia for its all-out invasion of Ukraine in February 2022.
European Commission Vice President Henna Virkkunen and the EU commissioner for culture, Glenn Micallef, said in a statement: "This decision by the Fondazione Biennale is not compatible with the EU's collective response to Russia's brutal aggression."
Institutions in the bloc "must act in line with EU sanctions", they said.
"Should the Fondazione Biennale go forward with its decision to allow Russia's participation, we will examine further action, including the suspension or termination of an ongoing EU grant to the Biennale Foundation."
They did not disclose how much EU money the Biennale gets, but grants to comparable major cultural bodies can amount to hundreds of thousands of euros a year.
The Venice Biennale is an international cultural organisation started in 1895 that presents festivals and runs its flagship art and architecture exhibitions on alternating years.
Participating countries set up pavilions in Venice, and the art biennial typically attracts more than 600,000 visitors over its seven-month run.