The European Union is preparing “smart sanctions” against Russian oil imports designed to minimise economic damage to the continent’s economy, a senior Brussels official has said.

Valdis Dombrovskis, the European Commission’s executive vice-president, told The Times that Brussels would soon present a sixth package of sanctions measures against President Putin that would include “some form” of an oil embargo amid pressure for the bloc to deprive Moscow of lucrative energy revenues.

“We are working on a sixth sanctions package and one of the issues we are considering is some form of an oil embargo. When we are imposing sanctions, we need to do so in a way that maximises pressure on Russia while minimising collateral damage on ourselves,” Dombrovskis said.