A multibillion-dollar energy project designed to export natural gas from Alaska received undisclosed financing from Novatek, a sanctioned Russian energy producer, according to media investigations published this week.
The American startup pursuing the development, Polar LNG, had publicly framed the Arctic initiative as a domestic undertaking. However, internal documents and interviews reported by The New York Times and the Financial Times reveal that the enterprise was secretly backed by Novatek, which is Russia’s second-largest producer of liquefied natural gas and has faced U.S. sanctions since the 2022 invasion of Ukraine.
Leadership Exodus Over Sanctions Concerns
The undisclosed ties prompted a wave of resignations among top leadership at the venture, known also as Polar Train LNG. Former Chief Executive Officer Joel Riddle—identified in one report as John Riddle—stepped down in September after discovering the Russian funding source. Riddle said he had initially been led to believe that the backing originated from an entity in the United Arab Emirates.
Chief Financial Officer Dan Chandra and several other senior managers also departed the firm shortly after Riddle resigned, according to reporting by the Financial Times.
“It’s not only unlawful, but it’s not in the U.S. interest to have Russian technology controlling the commercialization of Arctic gas in the North Slope,” Riddle told The New York Times, adding that he alerted officials within the Trump administration about the arrangement.
Polar LNG disputed Riddle’s characterization, calling him a disgruntled former employee and maintaining that the project complies with all federal regulations. The company had previously been cautioned by outside legal counsel: a memorandum prepared by the law firm Baker Botts warned that perceived connections to Novatek could endanger regulatory clearances and federal licensing, The New York Times reported.
Energy Deals Linked to Diplomatic Talks
The revelations coincide with broader diplomatic efforts by the White House to broker a cessation of hostilities in Ukraine. Envoys Jared Kushner and Steve Witkoff discussed the Alaska venture directly with Russian President Vladimir Putin during meetings in September, according to people familiar with the discussions cited by The New York Times.
Under the proposals discussed between U.S. and Russian representatives, Novatek would supply engineering expertise and equipment for the Alaska export facility in exchange for sanctions relief on its own Arctic LNG 2 project, the Financial Times reported. Novatek confirmed to The New York Times that it is seeking to secure minority shareholder status in the Alaskan initiative.
The talks reflect an administration strategy incorporating commercial energy arrangements into foreign policy negotiations. President Donald Trump has separately pursued deals to import Russian diesel to lower domestic fuel expenses and recently waived statutory sanctions on Novatek that had been passed by Congress.
Scrutiny Mounts Over Arctic Gas Plans
Industry analysts have warned that integrating Russian state-linked companies into American energy infrastructure poses strategic risks. Ilya Zaslavskiy, an energy analyst focused on Russian sanctions, told The New York Times that any transfer of technology should be viewed as a Russian effort to influence U.S. policy toward Ukraine.
While Novatek stated it signed a preliminary memorandum regarding the Alaskan venture in April, the company has not received required Treasury Department authorization to transfer equipment or finalize commercial operations. Federal regulators have not announced whether they will investigate the project’s financing structure.
