A recent study by Moody's reveals that Bulgaria is among the top European Union countries with a high concentration of companies connected to Russian entities. The research identified 46,000 firms across the EU with at least 40% ownership by Russian companies or individuals. Bulgaria ranks second in this list, following the Czech Republic.

According to the study, there are 9,581 companies in Bulgaria meeting the criterion of 40% Russian ownership, placing it behind the Czech Republic, which has 12,480 such companies. Other countries with significant numbers include Germany with 4,296 companies, Latvia with 3,338, and Italy with 2,539. These five countries together account for two-thirds of the companies under special surveillance due to their Russian connections.

The European Commission has implemented new regulations as part of the EU's 12th sanctions package against Russia, which took effect in July 2024. Under these regulations, EU credit and financial institutions must comply with stricter accounting and reporting requirements for transactions exceeding 100,000 euros involving Russian entities. This measure aims to enhance transparency and prevent violations of existing sanctions.

The new rules require banks and financial institutions to closely monitor and report transactions involving Russian-linked firms. This includes financial assets such as cash, checks, money orders, deposits, and account balances. Both one-time transfers and cumulative transactions over six months are subject to scrutiny.

The 12th sanctions package is part of the EU's broader efforts to limit Russia's revenue sources and enforce previous sanctions. A significant component of these measures is the ban on accepting deposits from Russian nationals exceeding 100,000 euros, a policy introduced in 2022.

Financial institutions in countries with high concentrations of Russian-linked companies, including Bulgaria, are expected to be particularly vigilant. The first reporting period for these transactions was from January to June 2024, with reports due in mid-July. This reporting cycle will continue every six months, with the next deadline set for January 15, 2025.