Russia is burning excess gas because it has no capacity to store it after cutting deliveries to the European Union, the bloc's energy commissioner said Tuesday.

"Our satellites are registering the leak of natural gas or them flaring the natural gas and this is very polluting," European Commissioner for Energy Kadri Simson told reporters during a visit to Indonesia.

"They don't have alternative pipeline connections to other regions in the world, and their own underground gas storage is full."

Europe is facing an acute energy shortage this winter after the announcement on Friday of a complete shutdown of the Nord Stream 1 gas pipeline by Russian giant Gazprom.

The Kremlin has blamed the halt in deliveries on sanctions imposed by the West over Russia's invasion of Ukraine.

Europe is also looking to wean itself off Russian oil, meaning Moscow "is seeking new markets, and they are selling their oil products with a significant discount to the ones who are willing to buy it", Simson said.

The G7 group of advanced nations on Friday announced a cap on the price of oil imported from Russia in order to limit Moscow's revenues.

"We don't want to pay the unfair price to the aggressor. So our message to Indonesia but also to India and China is, if you're still willing to buy Russian oil products, propose an oil price cap to them," Simson added.

Simson, who was in the Indonesian capital Jakarta for a G20 energy meeting and bilateral talks, will next fly to India where she is expected to discuss the price cap proposal.

She did not indicate what position Indonesia had taken.

Indonesian oil company Pertamina previously considered snapping up Russian oil at a knockdown price but has not confirmed whether it has signed a contract since the start of the war in Ukraine in February.

China to pay for Russian gas in yuan, rubles: Gazprom
Moscow (AFP) Sept 6, 2022 - Russia's energy giant Gazprom said Tuesday that China will start paying for Russian gas in rubles and yuan instead of US dollars, as Moscow seeks closer ties with Beijing in the wake of Western sanctions over Ukraine.

"A transition was made to making payments for Russian gas supplies to China in the national currencies of the countries -- the ruble and yuan," Gazprom said in a statement.

"The new payment mechanism is a mutually beneficial, timely, reliable and practical solution," Gazprom CEO Alexei Miller said as quoted in the statement following a video conference meeting with the head of China's oil group CNPC, Dai Houliang.

Miller added that it will "simplify calculations" and "become an excellent example for other companies".

Miller informed his Chinese counterpart of the "status of work on the project for gas supplies via 'the eastern route' -- the 'Power of Siberia' gas pipeline" which connects the Russian and Chinese gas networks, Gazprom added.

The energy giant said gas from the under-developed Kovykta field will start flowing through Power of Siberia "before the end of the year", allowing for the "increase (in) the volume of gas deliveries to China in 2023".

Following the imposition of economic sanctions over the Kremlin's offensive in Ukraine, Russia has reduced or halted supplies to different European nations, causing energy prices to soar.

It has also sought to bolster ties with allies in Asia -- especially China -- and boost natural gas deliveries to markets outside Europe.

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China to pay for Russian gas in yuan, rubles
Moscow (AFP) Sept 6, 2022
Russia's energy giant Gazprom said Tuesday that China will start paying for Russian gas in rubles and yuan instead of US dollars, as Moscow seeks closer ties with Beijing in the wake of Western sanctions over Ukraine. "A transition was made to making payments for Russian gas supplies to China in the national currencies of the countries - the ruble and yuan," Gazprom said in a statement. "The new payment mechanism is a mutually beneficial, timely, reliable and practical solution," Gazprom CEO A ... read more