Russian Company Suspected of Secretly Funding a Gas Project in Alaska — FT
A scandal has erupted in the U.S. over the $25 billion Polar Train LNG project in Alaska. Nearly the entire company leadership has stepped down following allegations of covert financing and control by the Russian company Novatek.
Polar Train LNG is developing a natural gas export terminal in northern Alaska. The project was launched in March with a plan to use Novatek’s partially constructed terminal, relocating it to Alaska. The company applied to the U.S. Treasury Department for permission to negotiate with the Russian group but has not yet received it.
According to Riddle, he discovered that Novatek was already financing the project and managing its operations pending the necessary approvals. He resigned in September, after which CFO Dan Chandra and other executives also left the company.
“I stepped down as CEO of Polar LNG because I was concerned that the Russian company Novatek was financing the company and ultimately controlling its strategic direction,” Riddle said.
At first, he believed the funds were coming from investor Gentry Beach, who is connected to the Trump family, and the Abu Dhabi-based company Tech Wave. Later, he said, it turned out that Beach had not invested in the project and was neither a shareholder nor a director.
The FT also reviewed WhatsApp messages in which Novatek board member Denis Solovyov discussed the project’s financing and attempted to expedite the transfer of funds to Polar Train LNG.
Polar LNG stated that Riddle had been fired, calling him a “dissatisfied employee,” and emphasized that it is developing the project in compliance with U.S. law.
Novatek said it had agreed to grant Tech Wave the right to use its technology in Alaska and signed a memorandum with Polar Train in April, when Riddle was leading the company.
According to sources who spoke with the FT, the project was discussed in negotiations between Washington and Moscow regarding business agreements that could help bring an end to Russia’s war against Ukraine. Discussions centered on exchanging Novatek’s expertise in building a terminal in Alaska for the lifting of sanctions on Russia’s “Arctic LNG-2” project.
This is reported by the Financial Times, to which the company’s former CEO, Joel Riddle, expressed concerns about a possible violation of U.S. sanctions.
Russia is establishing its own shipbuilding company due to a shortage of LNG tankers.
Despite Western sanctions, Russia continues to expand its Arctic fleet for the export of liquefied natural gas.
American investor Gentry Beach, who is linked to the family of U.S. President Donald Trump, announced the signing of a confidential agreement with the Russian company Novatek regarding the development of a natural gas field in Alaska.
