Full Breakdown
Secret Russian Funding in Trump-Backed Arctic Gas Project
By Drooid · · How we work
Core Event
An Alaska natural-gas venture led by the startup Polar LNG, promoted by former President Donald Trump’s senior advisers Steve Witkoff and Jared Kushner, has been linked to financing from Novatek, a major Russian energy company subject to partial U.S. sanctions. Former Polar LNG chief executive Joel Riddle told The New York Times that he was told the money originated from a United Arab Emirates firm, but that “at least some” of the capital actually came from Novatek. The project seeks to extract gas from the North Slope and ship it to allies, while relying on Russian technology for commercialization.
Background & Context
Polar LNG’s pursuit of Russian equipment raises legal questions because U.S. sanctions require Treasury Department approval for any Russian technology used in Alaska. A congressional sanctions bill named after the late Sen. Lindsey Graham specifically targets Novatek’s ties to President Vladimir Putin. According to the report, President Trump waived the law’s sanctions “last week,” allowing the deal to proceed despite the statutory restriction.
Official Statements & Responses
Novatek announced it was moving to acquire a “minority shareholder” stake in Polar LNG, potentially giving the sanctioned firm a direct interest in U.S. gas production. A memo prepared for Polar LNG by the law firm Baker Botts warned that perceived ties to Novatek could jeopardize required licenses and other regulatory approvals. The memo also noted that federal officials had already expressed concern that one Polar LNG investor might be acting on behalf of Novatek. The White House declined to comment when approached for a response.
Criticism & Opposition
Ilya Zaslavskiy, a gas-industry consultant who studies Russian sanctions, argued that any technology transfer from Novatek should be viewed as a Kremlin attempt to co-opt U.S. policymakers and undermine U.S. foreign policy toward Ukraine and its allies. Joel Riddle, who resigned as Polar LNG’s CEO, called the arrangement “unlawful” and contrary to U.S. interests, emphasizing the risk of Russian technology controlling Arctic gas commercialization.
Verbatim Quotes
- “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, who resigned as the company’s chief executive last month
- “Any approach by Novatek to transfer technology should be seen as a Kremlin attempt to co-opt U.S. policymakers in order to undermine U.S. foreign policy toward Ukraine and our allies,” — Ilya Zaslavskiy, a gas industry consultant