Europe prepares fresh Russia sanctions as US warns Moscow plans to annex parts of east Ukraine

European Commission expected to propose sixth package of sanctions this week as hopes rise of more Mariupol evacuations

• Russia-Ukraine war: latest updates

The European Union was preparing sanctions on Russian oil sales over its invasion of Ukraine after a major shift by Germany, Russia's biggest energy customer, that could deprive Moscow of a large revenue stream within days.

The reports state that Russia plans to engineer referenda upon joining sometime in mid-May," said Michael Carpenter, the US ambassador to the Organisation for Security and Co-operation in Europe on Monday. He said that Russia was considering a similar plan in a third region, Kherson, where Moscow has recently solidified control and imposed use of its ruble currency.