MediumVI Energy Politics & Supply Security23 October 2026, Friday
Sanctioned Novatek secretly funded an Alaska gas project, NYT and FT report
The New York Times and the Financial Times report that Novatek, under US sanctions since 2022, secretly financed a 25 billion dollar LNG export project in Alaska. The project's former chief executive resigned in September; the company denies the allegations.
According to the NYT report cited by the Kyiv Independent, Novatek, Russia's second-largest LNG producer, covertly funded Polar LNG, which aims to liquefy and export Alaskan gas. Former chief executive Riddle said he had been told the money came from a company in the United Arab Emirates. He resigned in September after learning the truth. The FT report cited by Ukrainska Pravda says chief financial officer Dan Chandra and other executives also left.
The FT says the project was launched in March with a 25 billion dollar export terminal and a plan to move a terminal partly built by Novatek to Alaska. The newspaper says it reviewed WhatsApp messages in which Novatek board member Denis Solovyov tried to speed up fund transfers. The company asked the US Treasury for permission to negotiate with the Russian group but has not yet received it.
The project sits on the table of US–Russia business deals. Sources say Witkoff and Kushner raised it with Putin during their Kremlin visit in September. One trade-off under discussion would see sanctions on the Arctic LNG 2 project lifted in return for Novatek providing technical support in Alaska. Novatek confirmed it was seeking a minority stake. Polar LNG described Riddle as a disgruntled former employee who had been dismissed and said it complies with US law.
The sources differ on names. The Kyiv Independent gives the former chief executive as John Riddle, Ukrainska Pravda as Joel Riddle. The company appears as Polar LNG in one report and Polar Train LNG in the other. Neither report disclosed the size of the funding, and it could not be verified.
Talay assessment
Bottom line
The story is a concrete example of Moscow's strategy of turning energy rapprochement with the US into sanctions relief. Trading Alaskan technology for Arctic LNG 2 aims to lift Novatek's biggest constraint. If money flowed without a Treasury licence, the project itself could become the subject of a sanctions investigation.
Likely effects
- Russian LNG supplyUncertain6 months+
If Arctic LNG 2 sanctions are lifted, Novatek's idle export capacity returns to the market and global LNG supply expands.
- US sanctions regimeNegative1–6 months
If Novatek money was used without Treasury permission, Polar LNG and its executives face the risk of sanctions violations.
- Peace bargainingNegative1–6 months
Putting energy projects on the US–Russia business table makes sanctions relief a bargaining item before the war ends.
Possibilities, ranked
- 1Treasury review drags on55%
The project stays in limbo awaiting permission and the political row continues.
Watch: The US Treasury decision on Polar LNG's application
- 2Congressional inquiry30%
Members of Congress open an inquiry into alleged sanctions violations.
Watch: A formal Senate or House inquiry into the Novatek link
- 3Trade-off advances15%
Arctic LNG 2 sanctions are eased as part of a peace package.
Watch: OFAC issuing a general licence for Arctic LNG 2
Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.
Market reaction
Indicators affected
- Alaska LNG project▲ $25bn
- US sanctions on Novatek▼ since 2022