The European Union is preparing to impose a series of tougher sanctions against Russia over its invasion of Ukraine, the head of the European Commission said Friday.

"We will deny Russia the status of most-favored-nation in our markets. This will revoke important benefits that Russia enjoys as a WTO (World Trade Organization) member," said Ursula von der Leyen.

Saying Russian companies will no longer have a privileged position in the EU, von der Leyen vowed, "We will ensure that Russia cannot obtain financing, loans or any other benefits from these institutions."

She also said they are working so that the "Russian state and its elites cannot use crypto assets to circumvent the sanctions."

The EU, she added, will ban the exports of any EU luxury goods from countries of the bloc to Russia, saying, "Those who sustain Putin's war machine should no longer be able to enjoy their lavish lifestyle while bombs fall on innocent people in Ukraine."

On Wednesday, the EU agreed to a new round of sanctions targeting senior Russian officials and oligarchs in retaliation for Moscow's military operation in neighboring Ukraine.

At least 564 civilians have been killed and 957 others injured in Ukraine since the beginning of the war on Feb. 24, the United Nations has said, while also cautioning that conditions on the ground make it difficult to verify the true number.

Over 2.5 million people have fled to neighboring countries, with about 2 million more estimated to be displaced inside Ukraine, according to the U.N. refugee agency.