Russia seizes control of partly foreign-owned energy project

The tanker Sun Arrows loads its cargo of liquefied natural gas from the Sakhalin-2 project in the port of Prigorodnoye, Russia (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, a bold move amid spiralling tensions with the West over Moscow’s military action in Ukraine.

Mr Putin’s decree late Thursday orders the creation of a new company that would take over ownership of Sakhalin Energy Investment Co, which is nearly 50% controlled by British energy giant Shell and Japan-based Mitsui and Mitsubishi.