Significant Increase in Russian-Owned Entities Across EU
New research published by Moody's indicates a notable increase in the number of European Union-based companies with significant Russian ownership. As of January 2026, the total number of such entities has reached just under 50,000, representing a 2.8% increase compared to figures from June 2025. This rise occurs despite the comprehensive sanctions imposed on the Russian Federation by the EU.
Nicola Passariello, Director in Moody's compliance and third-party risk management solutions team, commented that Russian-owned companies 'have continued to proliferate in Europe,' suggesting that Moscow has 'adapted' to the ongoing Western sanctions.
Geographic and Sectoral Concentration Revealed
The Moody's report, which identifies companies with at least 40% Russian ownership, also sheds light on the geographic distribution and sectoral focus of these entities. Bulgaria continues to host the largest number of Russian-owned companies in the bloc, with 13,341 as of January 2026, a figure that has remained largely stable since June 2025. This concentration is linked to Bulgaria's strategic role as a transit country for Russian gas via the TurkStream pipeline.
In contrast, the Czech Republic recorded a significant decline, with company numbers falling by 12.3% to 9,973 over the same period, potentially indicating the effect of regulatory pressure. Meanwhile, Italy experienced one of the strongest increases, with Russian-owned companies rising to 4,500 from 2,564. Cyprus also saw an 8.8% increase to 3,203 companies. Germany, despite its economic size, posted a modest 2% decline to 3,481 companies.
Russian-linked ownership remains concentrated in commercially active sectors, particularly
- real estate
- trade
Sanctions Framework and Reporting Requirements
The increase in Russian-owned companies comes amidst the EU's efforts to enhance oversight of financial flows linked to Russian interests. Under EU rules, financial institutions are mandated to report outbound fund transfers exceeding €100,000 when an entity has more than 40% Russian ownership. This regulation, known as Article 5r, aims to provide national authorities with greater visibility into these financial movements and assist in detecting potential sanctions evasion.
The EU has progressively imposed sanctions against Russia since 2014, with significant expansions following the 2022 invasion of Ukraine. These measures target individuals, entities, and various sectors, including finance, energy, and trade, with the goal of restricting Russia's ability to act and generate revenue. Despite these extensive sanctions, the latest Moody's findings highlight the complex challenges in fully isolating Russian economic interests within the EU.
5 Comments
Mariposa
It's clear, they're just finding new ways to operate. Unacceptable.
Muchacha
While the increase in Russian-owned entities is concerning, it also underscores the immense challenge of completely disentangling deeply integrated economies. A perfect blockade was always an unrealistic expectation given global trade complexities.
Bella Ciao
Sanctions clearly don't work. They only hurt our own economies.
Bermudez
EU needs to get tougher. Sanctions aren't working as intended.
Muchacho
The report clearly indicates Russia's efforts to adapt to sanctions, which is a problem for EU policy goals. However, the sanctions still impose significant costs and force these adaptations, making them far from ineffective.