The European Union proposed banning seaborne oil from Russia while delaying restrictions on imports from a key pipeline

Russian and Iranian officials discussed oil and gas supply swaps, as well as increasing joint energy investments May 25, as an increasingly isolated Moscow seeks more trade partners due to unprecedented sanctions pressure.

The Russian economy ministry forecasts an average Urals price of $80.10/b in 2022.

Saying no to Russian energy means that Europe will systemically and for the long term become the world’s most costly region for energy resources.

Engie and Gazprom have agreed on a solution in line with both companies' expectations in terms of currencies and with European sanctions.

Due to the ongoing geopolitical crisis, the EU member states have set up a purchasing platform for gas, LNG and hydrogen. In this way, one wants to become more independent of Russian energy imports and react against the strong price fluctuations of natural gas.

The energy package due this week may include measures to address the increasing household costs and energy poverty.

Russia’s share of German crude consumption has already declined to 12% from about 35% before the war in Ukraine, according to the Economy Ministry in Berlin.

European gas prices were trading higher early May 12, with the TTF month-ahead price up at Eur105/MWh ($109.72/MWh) as of 0815 GMT, according to ICE data.

Germany, Russia's top client in Europe, said some subsidiaries of Gazprom Germania were receiving no gas because of the sanctions.

The monthly import profile for April, which following European wholesale front-month trade in March, saw sourcing from all parts of the world intensify, with Europe comfortably receiving its highest-ever volume for a single month. This was, however, paid for at a high price.

Moscow has imposed sanctions on the owner of the Polish part of the Yamal pipeline that carries Russian gas to Europe, as well as Gazprom's former German unit, whose subsidiaries help meet Europe's gas consumption.

"Due to the fact that the Nord Stream 2 offshore gas pipeline is currently not in use, and taking into account the implementation of gas supply for consumers in northwest Russia, Gazprom has decided to use the excess onshore gas transmission capacity of Nord Stream 2 for the development of gas supply to the regions of northwest Russia," Gazprom said in a statement.

ExxonMobil holds a 30% stake in Sakhalin 1. Other partners include Rosneft with 20%, Japan's Sodeco with 30% and India's ONGC Videsh with 20%.

"To pay in rubles -- if this is not foreseen in the contract -- is a breach of our sanctions. We have about 97% of all contracts that explicitly stipulate payments in euros or dollars," she said.