The Council of the European Union added 39 companies registered in southern Russia and the North Caucasus to its sanctions list on October 12. Another 38 individuals holding senior positions at the firms were also designated over their alleged material support for Russia’s military-industrial complex.

Radio Svoboda (svoboda.org) reported the details on Monday, October 19. Sixteen of the listed businesses are registered in the Rostov region, while others are based in Volgograd, Krasnodar, Dagestan, North Ossetia, Stavropol and several neighbouring regions.

The list includes recognisable military facilities, such as an armoured vehicle repair plant, as well as less visible suppliers embedded in state defence procurement chains. According to the EU description, such companies provide electronics, communications equipment, optics, navigation systems and other components used in missiles, drones and aircraft.

The restrictions freeze any European assets held by the designated executives and bar them from entering the EU or receiving funds from abroad. Investigations specialist Ilya Shumanov said the companies could face higher costs and more complicated supply routes, although closures and immediate job losses appeared unlikely. Economist Sergei Zhavoronkov argued that the impact would probably be concentrated among exporters and businesses requiring specialised foreign materials.