(Bloomberg) -- The European Union may include the energy sector in any sanctions if Russia invades Ukraine, according to the bloc’s trade chief.

U.S. President Joe Biden warned of a possible Russian attack next month during a phone call Thursday with his Ukrainian counterpart, Volodymyr Zelenskiy. They also discussed ways the U.S. could offer financial support to bolster Kyiv’s economy.

Russia has denied it intends to invade, despite massing thousands of troops, tanks and equipment near Ukraine’s eastern border.

Key Developments:

  • Baltic NATO states warn on gas flow after Russian vessel appears
  • Russia criticizes U.S. security response to demands
  • German executives plan to discuss economic ties with Putin
  • Oil fell from a fresh seven-year high amid tight supply

All times CET.

EU Sanctions ‘Could Hit Energy Sector’ (8:20 a.m.) 

The EU’s top trade official, Valdis Dombrovskis, said the bloc could target the energy sector with restrictive measures if Russia were to invade Ukraine, part of what he called a “substantial package of sanctions.”

“Member countries are ready to tolerate a possible negative effect on income because peace is in danger in Europe,” Dombrovskis said in an interview with Italy’s Il Sole 24 Ore and other newspapers. “The sanctions in preparation will also affect the energy sector,” he added, without providing details.

Germany has pushed for an exemption for the energy sector if there is a move to block Russian banks from clearing U.S. dollar transactions, according to documents seen by Bloomberg this week.

Taiwan Monitoring Situation in Ukraine (8:20 a.m.)

Taiwan President Tsai Ing-wen ordered government agencies to continue monitoring the situation in Ukraine and its potential impact on national security, according to a statement from presidential office.

Tsai ordered Taiwan’s military and national security units to take precautions to ensure regional stability ahead of the holidays.

Taiwan, which China considers a breakaway province, is concerned that any Russian action against Ukraine could embolden Beijing to take a more assertive stance in the Western Pacific and is watching whether the U.S. and its allies are able to muster a robust response.

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