European shares edged higher on Monday led by a rally in healthcare stocks, with investors keeping an eye out for more Western sanctions after Ukraine accused Russia of war crimes.

The pan-European STOXX 600 index was up 0.3% after ending last week up 1%.

Drugmaker Roche rose 1.5% after the U.S. Food and Drug Administration granted priority review to its drug to treat COVID in hospitalised adults.

Novartis jumped 0.8% on a plan to integrate its pharmaceuticals and oncology units, which could see savings of at least $1 billion by 2024.

The healthcare sector rose 1%.

Germany said on Sunday the West would agree to impose more sanctions on Russia, with the country's defence minister saying the European Union must discuss banning the import of Russian gas. Russian gas accounts for 40% of European consumption.

Sanctions imposed so far on the crude and basic materials producing country have sent prices of commodities soaring, fanning inflation fears. Data last week showed inflation in the European Union hit record highs, piling pressure on the European Central Bank to tighten policy.

(Reporting by Susan Mathew in Bengaluru; Editing by Arun Koyyur)