The European Union has stripped the Venice Biennale of a 2 million euro ($2.3 million) grant after organizers of the prestigious contemporary art exhibition allowed Russia to participate in this year's event.

The European Commission, the bloc's executive arm, had threatened to pull the funds if Russia took part in the exhibition, which opens next month in the Italian city.

Ukraine, along with 21 EU member countries, had released a letter criticizing the possibility of Moscow's inclusion given the ongoing, all-out invasion of Ukraine, now in its fifth year.

"Granting Russia a prestigious international cultural platform sends a deeply troubling signal," the letter said.

Exhibition organizers pushed back on the demand, as did Italian Deputy Prime Minister Matteo Salvini.

In comments on April 23, European Commission spokesman Thomas Regnier confirmed the EU executive was following through on its threat.

"We politically condemn the decision to open the Russian pavilion and invite the Italian government to address this issue," he stated.

The Biennale responded to the decision, saying in a statement that it "does not have the authority to prevent a country from participating. Any country recognized by the Italian Republic may request to participate."

The exhibition is one of world's oldest and most important for contemporary art, comprising a main exhibition alongside national pavilions hosted by individual participating countries.

This year, 99 countries in total were scheduled to host pavilions.

The Biennale has in the past refused pressure to exclude countries, including Iran and Israel, from participating.

With reporting by AP