The European Union is preparing its largest sanctions package against Russia by number of companies targeted. According to Bloomberg, citing sources familiar with the preparation of the document, more than 1,600 firms that Brussels believes are helping Russia in its war against Ukraine could face restrictions.
This would be a record number of companies added to the EU’s sanctions lists in a single package. The companies that may come under sanctions have a combined annual turnover exceeding $20 billion and employ more than 265,000 people. If approved, the number of organizations under European sanctions related to the conflict in Ukraine would increase by approximately 50%.
The European External Action Service (EEAS) has been developing the package for several months. Unlike previous rounds, the new restrictions target specific companies in Russia’s military-industrial complex and their enablers that have so far escaped sanctions, rather than entire sectors or categories of goods.
Agency sources note that the economic impact of this package is likely to be less significant than that of earlier measures aimed at the oil industry and the banking sector. The draft is expected to be presented to EU member states in the coming weeks to give them time to review it. A final decision is anticipated in October at a meeting of EU foreign ministers. Unanimous support from all member states is required for the package to be adopted.