Almost 31,000 companies in Europe had Russian owners in the first months of 2022, according to a recent report by the European Commission.
These companies are mainly active in the real estate, construction, hotel, financial and energy sectors, the study read.
The report assesses the overall risks of money laundering and terrorist financing in the EU with a section dedicated to the consequences of Russia's invasion of Ukraine.
At least 1,400 out of the 31,000 companies are owned by 33 individuals who have recently been targeted by asset freezes under EU sanctions over Russia's war against Ukraine, according to the report.
The document points out that some oligarchs may conceal their ownership or control of companies through intermediary companies registered in countries outside the EU or local nominee shareholders.
Proper implementation of asset freezes would require the effective enforcement of beneficial ownership transparency rules, the report read.
Additionally the commission advocates better information exchange and "adequate" detection and monitoring of assets hidden from tax authorities.
"Empty shell companies can be created with relative ease, therefore they continue to be used to transit hundreds of millions of euros through opaque transactions," the study read.
"By utilizing shell companies, criminals can conceal the origin and destination of funds, in addition to obscuring the real beneficiary of the operation."
The funds in question could therefore be used both for personal gain and to destabilize entire countries, the report read.
"Thus, shining a light on dirty money flows not only contributes to defending democracy and the safety of EU citizens, but it also helps countering the influence of autocracies," the study continues.
