Sanctions on a Russian economy that depends largely on the export of natural resources are taking "a heavy toll," the European Commission said Tuesday.

The EC published its autumn outlook on regional economies. An October stress test on European banks found they'd be able to withstand financial crises, though European Commissioner for Investment Jyrki Katainen said in a statement the situation in Europe "is not improving fast enough.

Real growth in gross domestic product member states is expected to reach 1.3 percent for 2014 and increase to 1.5 percent by next year.

In its analysis for Russia, the EC said the economy there was entering a period of stagflation.

"Geopolitical tensions over the situation in Ukraine, including sanctions, have exacerbated existing structural bottlenecks linked to an exhausted growth model largely centered on the export of natural resources," the report said. "This is taking a heavy toll on the growth outlook."

The EC said there was a small recovery in the Russian investment climate in the latter half of 2013, though that evaporated in 2014. Uncertainties over Russia's reaction to geopolitical concerns over a Ukraine moving closer to Western powers are making would-be investors worried, the commission's report said.

"This is further aggravated by the effect of recent sanctions, which effectively prevent access to Western capital markets for some main Russian companies in the banking, defense and oil sectors," the report said.

In late October, the Russian currency traded at an all-time low against the dollar as sanctions on the energy sector took their toll.

British energy company BP said when it released its third quarter results last week the depreciation of the Russian currency in part had a "significant impact" on its financial performance.

From its operations related to Russian oil company Rosneft, BP said net income for the quarter was $110 million compared with $808 million during the same period last year.