Source: Sharecast
The latest satellite images showed a Russian military convoy north-west of Kyiv that stretched for about 40 miles as Russian forces appeared to be preparing intensify their efforts to take the capital, even as attacks on other cities including Kherson, Mariupol and Kharkiv were also expected to pick up.
The pan-European Stoxx 600 was down 2.37% to 442.37 with the French CAC down by nearly 4% and Germany's DAX off by 4%.
Brent crude oil futures surged 9.23% alongside to $107.01 per barrel.
The Russian rouble slumped again, cratering by 9.76% to 115.5681.
Ceasefire talks between Russia and Ukraine on Monday failed to reach a breakthrough and negotiators have not said when a new round would take place, although more negotiations were expected.
In equity news, shares in Polymetal continued to tank after Monday's 56% fall, with the tarnished stock now down a further 26% as investors took flight.
The London-listed gold producer, about to be booted from the UK's FTSE 100, is about to be dumped by Norway's sovereign wealth fund as it divests Russian investments in the wake of sanctions.
Shares in Atos slumped 20% after the French IT company's full-year guidance missed expectations.
Shell slipped 1% after early gains following the energy giant's announcement that it was dumping all its Russian operations, including a major liquefied natural gas plant.
Flutter slumped more than 12% as underlying annual profit fell after the gambling group was hit by a string of punter-friendly sporting results in the UK and Ireland.
Shares in meal kit company HelloFresh were down as annual profits fell.
Among the risers, German defence manufacturer Rheinmetall continued to rise as Berlin authorised the export of arms to Ukraine
Chemicals maker Covestro fell 4% after saying it had more than doubled its 2021 core profit and expected upbeat earnings for 2022.
Shares of Austria's Raiffeisen Bank plummeted 10%, adding to a drop of 14% on Monday.