By Alexander Miller, consultant in energy markets. – Eurasia Business News, October 24, 2026. Article no 3225
A $25 billion Alaska gas export venture faces scrutiny after its former chief executive accused Russian energy company Novatek of secretly financing and directing the project before obtaining U.S. sanctions approval. The allegations, reported by the Financial Times, prompted the departure of almost the entire executive leadership team at Polar Train LNG.
The company disputes the account. Polar LNG described former chief executive Joel Riddle as a “disgruntled employee,” said he had been terminated and maintained that development activities comply with applicable U.S. laws. The accusations remain contested and do not establish that sanctions violations occurred.
What Is the Polar Train LNG Project?
Polar Train LNG is developing a gas export terminal on Alaska’s North Slope, targeting Asian markets. Launched in March, the venture proposed repurposing a partially constructed Novatek terminal for installation in Alaska.
The project aligns with the Trump administration’s ambition to expand American energy exports. According to people familiar with discussions cited by the FT, it also featured in negotiations between Washington and Moscow about business arrangements potentially linked to ending Russia’s war in Ukraine.
Investor Gentry Beach, who has ties to Donald Trump’s family, was involved in launching the venture. However, Riddle said he subsequently learned that Beach had not invested and was neither a shareholder, officer nor director.
Why Did the Executive Team Leave?
Riddle, a former ExxonMobil engineer, told the Financial Times that he initially believed Beach and Abu Dhabi-based Tech Wave Industrial Projects Management were financing the development.
He alleged that, as funding requirements increased, he discovered Novatek was providing capital and directing operations before the necessary approvals had been secured. Polar LNG had sought permission from U.S. Treasury sanctions authorities to negotiate with the Russian group but had not received approval, according to the report.
Riddle said he resigned in September. Departures followed from chief financial officer Dan Chandra, executive vice-president Jim Smith and executions manager Jody Trantham.
Novatek Disputes Sanctions-Link Allegations
Novatek said it granted Tech Wave rights to use its technology in Alaska and signed an April memorandum of understanding with Polar Train while Riddle was chief executive. It acknowledged that executing the project would require approvals from American and Russian authorities.
The Russian company denied that access to its technology was conditional on sanctions relief for Arctic LNG 2, calling the Alaska development a standalone opportunity.
Arctic LNG 2, designed to produce nearly 20 million tonnes annually, was sanctioned by the U.S. Treasury in 2023 and has struggled to become fully operational.
Regulatory Approval Becomes the Central Question
A White House official told the FT that the venture had been mentioned only broadly and briefly, without detailed discussions. Treasury declined to address specific allegations but said it takes potential sanctions violations extremely seriously.
The central issue is compliance: whether financing, operational direction or technology arrangements required authorization, and whether any regulated activity occurred prematurely. Corporate relationships alone do not resolve those questions.
For the Alaska LNG project, clarifying ownership, funding and approvals is now essential to establishing credibility with regulators and prospective commercial partners.
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© Copyright 2026 – Eurasia Business News. Article no. 3225
