Former Polar Train LNG CEO Accuses Novatek of Secret Control Over Alaska Project Amid U.S. Sanctions Probe

Controversy Surrounding Polar Train LNG and Alleged Novatek Influence

According to ХВИЛЯ: Joel Riddle, the former CEO of Polar Train LNG, has publicly accused the Russian energy firm Novatek of covertly controlling a $25 billion gas terminal project in Alaska. Riddle and several other senior executives reportedly resigned over concerns that the involvement of Novatek could violate U.S. sanctions. The Polar Train LNG initiative was originally part of the Trump administration's strategy to boost American LNG exports to Asian markets.

Founded in March 2023, Polar Train LNG aimed to repurpose a partially constructed Novatek terminal in Alaska. However, the company never secured approval from the U.S. Treasury Department to negotiate with the Russian entity. Riddle, who previously worked as an engineer at ExxonMobil, stepped down on September 19, 2023. He was succeeded by Tim Talkington, a former head of Goldman Sachs’ Russian division, who took over as acting CEO.

Project Financing and Key Investors

Initial backers included Gentry Beach and Abu Dhabi-based firm Tech Wave, though Beach did not contribute funds or hold a formal role. As capital requirements increased, Novatek stepped in to provide financing, which Riddle claims led to Novatek exerting unauthorized control over the project. Financial Times journalists obtained internal communications revealing Novatek board member Denis Solovyov discussing the acceleration of funds to Polar Train LNG.

Leadership at Polar Train LNG features two Norwegian businessmen, including Bjorn Gundersen, who has prior experience working with Novatek. In 2023, the Biden administration imposed sanctions on Arctic LNG 2, limiting the plant’s operational capacity. Current U.S.-Russia negotiations reportedly involve a potential deal exchanging Novatek’s expertise in constructing the Alaska terminal for the easing of sanctions on Arctic LNG 2.

A White House representative acknowledged the project had been discussed in broad terms but without in-depth review. The U.S. Treasury Department has refrained from commenting on the sanctions allegations but indicated they are taken seriously.

Riddle emphasized, "It was unsettling that Novatek, a Russian company, was funding and ultimately directing the strategic path of the company."

This unfolding situation highlights ongoing tensions around Polar Train LNG’s funding and operational control, underscoring the need for close oversight.

For international audiences, this case illustrates the challenges global energy ventures face when entangled with Russian firms under U.S. sanctions. The lack of official Treasury authorization and concerns over compliance risks could significantly impact the project's future. Ensuring transparent control and lawful financing remains crucial for safeguarding security and regulatory standards within the energy sector.