Sources indicate that the European Union is unlikely to impose an oil embargo on Russia.

• Earlier this month, the U.S. banned imports of the commodity, but international allies have not followed suit due to their dependence on Russian energy.
• The EU's oil purchases in 2020 were accounted for by Russian oil imports, which made up approximately 25%, according to regional statistics.
• On Tuesday morning, the dip in oil prices was accentuated by the EU's reluctance to take action against Russian oil.
• In early trading hours, the price of Brent futures decreased by approximately 0.6% to $114.96 per barrel.

According to two CNBC sources, the European Union is unlikely to impose an immediate oil embargo on Russia over its invasion of Ukraine.

Earlier this month, the U.S. banned imports of the commodity, but international allies have not followed suit due to their dependence on Russian energy. In 2020, Russian oil imports accounted for approximately 25% of the EU's oil purchases, according to the region's statistics office.

The decline in oil prices on Tuesday morning was due to the EU's hesitancy to act against Russian oil, which fell about 0.6% to $114.96 a barrel in early trading hours.

While Poland and the Baltic countries are strong advocates for limiting Russian oil purchases, Germany and Hungary are concerned about the potential impact on prices.

An EU official, who wished to remain anonymous due to the delicacy of the negotiations, informed CNBC Tuesday that only a small number of countries support an oil embargo.

An EU official stated that talks are ongoing, but a decision is unlikely to be made this week unless Putin takes an even more extreme action.

This week, European leaders and U.S. President Joe Biden will meet in Brussels to discuss their coordinated response to the invasion of Ukraine.

Chemical weapons threat

The U.S. has emphasized the possibility of Russia employing chemical weapons in Ukraine, following Russia's accusations against Ukraine of operating chemical and biological weapons laboratories with U.S. support. However, this claim was rejected by Ukrainian and Western officials, and the West suspects that Russia may be fabricating and using this narrative to justify using its own chemical weapons against Ukraine.

The first EU official stated that if Russia used chemical weapons, nothing would be off the table in terms of response among European countries.

An oil ban could be one of the options if Russia starts using chemical weapons, said the official, implying that the situation would be different.

The bloc is under increasing pressure to take stronger action against Moscow as the conflict in Ukraine persists.

Simon Coveney, Ireland's foreign affairs minister, stated on Monday that it is challenging to argue against transitioning into the energy sector, specifically oil and coal.

Finland's Minister for European Affairs, Tytti Tuppurainen, stated on Tuesday that although no sanctions have been agreed upon regarding energy, it is not entirely ruled out.

EU leaders are planning to hold an international conference to secure more funding for Ukraine and phase out the EU's reliance on Russian gas, oil, and coal imports "as soon as possible," according to a draft document seen by CNBC.