Heat the olive oil in a pan over medium heat.

Add the chopped shallot and sauté for 5 minutes, until softened.

Stir in the tomato paste and cook for 1 minute.

Add the canned chopped peeled tomatoes, fresh basil, red wine, and sugar.

Season well with salt and pepper.

Bring the sauce to a boil.

Reduce the heat to low and let simmer for 15-20 minutes, or until the sauce has thickened to your liking.