European Union (EU) leaders agreed late Monday to cut off the majority of oil imports from Russia, a sweeping step aimed at crippling the Kremlin’s ability to finance its invasion of Ukraine.

EU Oil Consumption

EU officials planned to meet Wednesday to finalize the embargo. It would exempt oil delivered via pipelines – nearly one-third of imports from Russia – and would be phased in over several months, according to European Council President Charles Michel.

“Agreement to ban export of Russian oil to the EU,” Michel said on Twitter. “This immediately covers more than two-thirds of oil imports from Russia, cutting a huge source of financing for its war machine. Maximum pressure on Russia to end the war.”

By the end of 2022, Michel added, the EU expects to have curbed 90% of Russian...