I don't think the point is that Europe should have "ceded" Ukraine to Russia- Ukraine was never part of the EU to begin with, and was always a border land between Europe and Russia. It should have instead agreed on a course of action that could be satisfactory for both sides- something that would allow the EU to keep benefiting from low cost-energy and Russia to not feel threatened by an eastward expansion of the West's sphere of influence. Instead it blindly followed the US in a head-on collision course, with the result that it has damaged itself and its industry, and it's weaker than ever.

The only bargaining chip the EU has now is its market; it could stop buying US oil and buy Russian instead; and it could seek deeper commercial ties with China (some EU countries pulled back on the road and belt treaties on the request from the US).