Robin Emmott and Benoit van Overstraeten

STRASBURG (Reuters) – The chief executive of the European Union proposed Wednesday a gradual oil embargo against Russia for its war in Ukraine. He also sanctioned Russia’s bank and banned Russian broadcasters on European radiowaves in an attempt to increase Moscow’s isolation.

The EU government must agree on the plan to make this a landmark moment for the biggest trading bloc. This is a group that depends heavily upon Russian energy and needs alternative supply sources.

However, Russia’s February 24 invasion of Ukraine via land, air and sea on Feb. 24 and horrific scenes of massacre in Ukrainian cities have overpowered reluctance so far to impose the most severe sanctions.

Ursula von der Leyen (President of European Commission) told Strasbourg that the European Parliament would ban Russian oil imports from Europe.

She said, “This will be an absolute import ban on all Russia,” to widespread applause.

von der Leyen explained that measures taken by the Commission include eliminating Russian imports within six months. They also plan to phase out refined products by 2022. The impact of the sanctions on European economies will be minimized, she said.

At 0900 CET the price of climbed 2% to $10711, an increase of 37.5% from the beginning of this year.

We are working to reduce our dependence on Russian oil. Let’s not forget, some members are highly dependent on Russian oil. However, this will not be an easy task. We simply need to do it.” she added.

She stated that Putin (Russian President Vladimir) must pay a heavy price for his violent aggression.

Sberbank is Russia’s most important lender. The new round of sanctions will also hit three more banks. It joins several other banks exempted from SWIFT.

“We de-SWIFT Sberbank – by far Russia’s largest bank, and two other major banks. Von der Leyen stated that this hit the banks which are “systemically crucial to Russia’s financial system” and Putin’s ability of destruction.

“This will consolidate the complete isolation Russian financial sector form the global system,” she stated.

Von der Leyen claimed that higher-ranking Russian military personnel would face EU travel bans and asset freezes. Referring to the Kremlin, she stated that “you are not getting away from this.”

Now, the Commission’s proposals must be approved by all 27 members. Because of their dependence on Russian energy, diplomats suggested that Hungary and Slovakia could be given a longer grace period to stop oil imports.

Simone Tagliapietra from the Bruegel think-tank said that EU’s gradual embargo of Russian oil was a “risky bet”.

He stated that “In the short-term it might leave Russian revenue high, while implying adverse consequences for the EU economy and global economy in the form of higher prices.” “Do not forget about the retaliation threats on supply.”

(Additional reporting John Chalmers Sabine Siebold Jan Strupczewski Gabriela Bacyznska, Gabriela Strupczewski and Kate AbnettEditing: John Chalmers