The European Union is preparing to blacklist more than 1,600 companies that it accuses of feeding Russia's war against Ukraine, Bloomberg reported, citing anonymous sources. It would be the largest batch of firms named in a single European sanctions round, and it needs unanimous approval to take effect. Officials are aiming for adoption in the fall.

A blacklist built company by company

Together the listed firms turn over more than $20 billion a year and keep over 265,000 workers on their payrolls, people familiar with the matter told Bloomberg. Approval would lift the number of entities the EU has sanctioned during the war by 50%, the same people said. The bloc's foreign policy arm, the European External Action Service (EEAS), has spent months on the draft, hunting for parts of Russia's military-industrial complex that earlier measures never touched. The draft skips category-wide bans and lists firms one at a time instead.

Bloomberg says the package would likely still fall short of the economic weight of earlier rounds aimed at Russian oil and banking. The EU adopted its 21st package on 23 July, with 218 new designations.

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Carve-outs keep blunting the packages

Adopting sanctions has grown harder as governments demand exemptions to limit damage at home, Bloomberg noted. Greece's objections shrank a proposed ban on moving Russian liquefied natural gas to third countries. France and Italy pushed to weaken a proposed entry ban on former Russian combatants, and other states killed proposed import bans on Russian fish. That same round also let raw Russian sable pelts back into the market.

Officials plan to send the draft to national capitals within weeks, leaving governments room to study it, with adoption planned for the October meeting of foreign ministers. The bloc is separately preparing restrictions tied to Russia's forced deportation of Ukrainian children, which could also land in the fall, the same people told Bloomberg. Nearly two dozen Russians have already been sanctioned over the abduction of Ukrainian children.