EU preparing sanctions on over 1,600 Russian companies, Bloomberg says

The European Union is preparing a new sanctions package that could cover more than 1,600 Russian companies linked to supporting Russia's military capabilities, Report informs, citing Bloomberg.

If adopted, the package could increase the number of sanctioned Russian entities by about 50%.

Sources said the companies that could fall under the restrictions have a combined annual turnover of more than $20 billion and employ over 265,000 people.

The new package would be the largest in terms of the number of companies added to the sanctions list since the EU began imposing restrictions on Russia. Unlike several previous measures, it would mainly target specific entities rather than individual goods or entire sectors of the economy.

According to the sources, work on the new package has been underway for several months. The formal proposal is expected to be presented to EU member states in the coming weeks, with the aim of adopting the sanctions at a meeting of EU foreign ministers in October.

At the same time, Bloomberg notes that the new package is unlikely to have the same economic impact as previous restrictions targeting Russia's oil sector and banking system.