European companies operating in Russia face new challenges as the European Union (EU) tightens sanctions. A provision allowing multinational corporations to offer professional services to their Russian subsidiaries will be eliminated in June. This move aims to close loopholes and cut off financial resources for the Kremlin’s military efforts.
The change may inadvertently lead companies to engage with Russian service providers or relocate services outside the EU. Despite corporate departures and previous sanctions, many international companies continue operations in Russia, relying on the exemption for professional services.
The updated sanctions also enhance restrictions on entities linked to the Russian military-industrial complex and ban exports of technical drone components to Russia.
