According to the European Union statistical office (Eurostat) on Thursday, the annual inflation in 19 Eurozone countries increased from 5.9% in February to 7.4% in March.

"The euro area annual inflation rate was 7.4% in March 2022, up from 5.9% in February. A year earlier, the rate was 1.3%," according to the statement.

European nations have been scrambling for strategies to stop the stream of energy inflation as a result of the situation in Ukraine, which has caused price increases, most notably for oil, which has risen beyond $100 per barrel.

Read more: US, EU sanctions on Russia impact gas, oil, currency & more

Days ago, Deputy Chairman of the Russian Security Council Dmitry Medvedev said Russia's default on international payments could result in hyperinflation in Europe and its own default.

Despite this, Ursula von der Leyen, President of the European Commission (EC), told Bild am Sonntag that the European Union was considering measures against the Russian banking sector, specifically Sberbank, as well as restrictions in the energy sector when discussing additional sanctions against Russia over Ukraine.

Furthermore, the European Commission chief commented on the key points of the sixth package of sanctions against Russia, by saying: “We continue to consider the banking sector, specifically Sberbank, which accounts for 37% of Russia’s banking sector. And of course, the energy sector is discussed." 

European countries have imposed a wide range of sanctions on Russian companies and banks, and isolating Russia from the SWIFT financial system.