Russia is moving to further tighten its grip on the nation’s oil and natural gas supplies, issuing a decree for the country to take over the Sakhalin-2 liquefied natural gas (LNG) export project on Sakhalin Island north of Japan. 

An executive order signed by Russian President Vladimir Putin to “protect the national interests” calls for establishing a Russian limited liability company to take over the rights of a partnership between Shell plc, Gazprom PJSC and Japanese trading houses Mitsui & Co. Ltd. and Mitsubishi Corp. The move could ultimately force the foreign entities out of their ownership positions. 

The “ownership of the company’s property, created within the framework” of a production sharing agreement signed in 1994 “shall be transferred forthwith to the...