The EU is preparing a record sanctions blow against Russia: more than 1,600 companies may be subject to restrictions

The European Union is working on one of the largest sanctions packages since the start of Russia’s full-scale war against Ukraine. The new restrictions could affect more than 1,600 Russian companies that, according to the EU, are contributing to the Kremlin’s military aggression.

Bloomberg reports.

The largest package of sanctions against Russian companies

According to the publication’s sources, if the new package is adopted, the number of Russian organizations under EU sanctions will increase by about 50%.

The combined annual turnover of the companies that are planned to be included in the sanctions list exceeds $20 billion, and the total number of their employees is more than 265,000 people.

Unlike previous packages, which were aimed mainly at the Russian energy sector, banks or the export of certain goods, this time the main emphasis is placed on enterprises that help ensure the functioning of the Russian military machine.

The purpose of the sanctions

The new package is seen as another tool to increase pressure on the Russian leadership in order to force the Kremlin to agree to a negotiation process to end the war against Ukraine.

At the same time, Bloomberg’s interlocutors note that the economic effect of the new sanctions may be less tangible than from previous packages that affected the oil sector and the financial system of Russia.

It is increasingly difficult to coordinate sanctions in the EU

Recently, the process of adopting new sanctions packages in the European Union has become increasingly difficult due to the different economic interests of member states.

In particular, during the preparation of the 21st package of sanctions, the EU countries achieved a number of changes:

Greece opposed stricter restrictions on the export of Russian liquefied natural gas, after which the relevant provisions were softened.

France and Italy insisted on revising the proposal to ban former Russian military personnel from entering the EU.
Some states have also blocked a ban on the import of certain types of Russian fish, including cod and pollock.
When new restrictions may be adopted

According to Bloomberg, the European Commission plans to present the final draft of sanctions to member states in the coming weeks so that they have enough time to process it.

It is expected that decisions on the new package may be adopted during a meeting of EU foreign ministers in October.

In addition, the European Union is preparing a separate package of restrictive measures related to the forced deportation of Ukrainian children to Russia. It may also be approved in the fall.

At the same time, according to Bloomberg, Brussels is increasingly actively discussing a change in approach to sanctions policy. Instead of large-scale packages, the EU may move to more targeted and regular restrictions.

Separately, Lithuania has already proposed extending its national sanctions against citizens of Russia and Belarus for another two years – until the end of 2027.