EU prepares 'smart sanctions' on Russia

He said precise details of the oil sanctions had not yet been agreed but could include a gradual phasing-out of Russian oil or imposing tariffs on exports beyond a certain price cap, the British newspaper reported on Sunday.

Russia is Europe's biggest oil supplier, providing 26 per cent of EU imported oil in 2020. Europe gets roughly a third of its gross available energy from oil and petroleum products, in sectors from transportation to chemicals production.

Ukraine and some EU states, including Poland and Lithuania, want a ban on Russian oil and gas, whereas Germany and Hungary are opposed to an immediate oil embargo.

Oil and oil products made up more than a third of Moscow's export revenues last year. Currently, Europe spends about $US450 million ($A623 million) a day on Russian crude oil and refined products, about $US400 million a day for gas, and roughly $US25 million for coal, according to think-tank Bruegel.