Russia seizes control of partly foreign-owned energy project

MOSCOW (AP) — Russian President Vladimir Putin has handed full control over a major oil and natural gas project partly owned by Shell and two Japanese companies to a newly created Russian firm. It’s a bold move amid spiraling tensions with the West over Moscow’s military action in Ukraine. Putin’s decree late Thursday orders the creation of a new firm that would take over ownership of Sakhalin Energy Investment Co. It’s nearly 50% controlled by British energy giant Shell and Japan-based Mitsui and Mitsubishi. Russia’s Gazprom had a controlling stake in the Sakhalin-2 oil and gas project that accounts for about 4% of the world’s liquefied natural gas market. Japan, South Korea and China are the main customers for its exports.