r/UnderReportedNews • u/John3262005 • 1h ago
Russia 🇷🇺 In U.S. Gas Talks With Kremlin, Hidden Financing for Alaska Project Emerges
At first blush, the proposed venture looks like it would further the Trump administration’s goal of global “energy dominance.”
An American energy company intends to buy Russian technology and use it to access a massive supply of natural gas in Alaska, liquefy it and export it to allies abroad.
The Kremlin and the White House were interested in the idea. President Vladimir V. Putin discussed the plan last month with President Trump’s peace envoys, Steve Witkoff and Jared Kushner, people familiar with the negotiations said, speaking on condition of anonymity to discuss sensitive diplomacy. It is one of a series of energy deals White House officials believe could help smooth relations with Moscow and eventually pave the way to end the war in Ukraine.
But it turns out that the company was not an all-American affair. The multibillion-dollar project has received secret funding from the same powerful Russian company that was to provide the technology, according to the energy executive who until last month led the U.S. firm and two others involved in company negotiations.
Joel Riddle, who was chief executive of the company, Polar LNG, until he resigned in September, said he had been misled about the sources of the start-up funding, which ostensibly came from a company in the United Arab Emirates.
Instead, Mr. Riddle said he learned, the true source of at least some of Polar LNG’s money was Novatek, a Russian energy giant under partial U.S. sanctions.
“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,” Mr. Riddle said in a brief interview.
These previously unreported tensions were also detailed in legal memos that Mr. Riddle attached to his resignation letter, which was reviewed by The New York Times. The memos, prepared by Baker Botts, an international law firm, said the Treasury Department’s sanctions enforcement unit had raised concerns that Polar LNG had ties to Novatek that might present “potential Russia-related sanctions concerns.”
Polar LNG on Friday issued a statement announcing a new acting chief executive, Tim Talkington, and described Mr. Riddle as a “disgruntled former employee.”
But in a statement to The Times, Novatek said on Friday that in fact, it was moving to acquire “minority shareholder” status in the Polar LNG project — a striking effort by the Russian energy giant to seek ownership of American gas production.
The project, if it happens, is a long way off. In addition to the sanctions issues that would have to be negotiated, the technology envisioned is highly complex and must overcome some of the most brutal weather conditions in the United States. It also is competing with another Alaska gas plan that already has the support of the Trump administration. But that the Polar LNG deal is being discussed at all shows how business deals of almost any stripe are on the table during the talks with the Kremlin.
The sequence of events illustrates the unorthodox, opaque mixture of deal-making and high-stakes diplomacy that has defined Mr. Trump’s attempts to end Europe’s bloodiest conflict since World War II.
There is no indication that Mr. Witkoff or Mr. Kushner were aware of Polar LNG or its ties to Novatek, even as the broad outlines of the deal came up in their talks with Mr. Putin beginning last year. A U.S. official, speaking on condition of anonymity to discuss the closed-door talks, said that the deal had only been broadly mentioned and that no granular discussions had occurred.
The project, should it ever come to fruition, would doubly help Novatek, one of Russia’s biggest energy companies, first by using Novatek’s technology and second because the company would own an equity stake.
The Alaska gas discussions have taken place alongside talks to sell off part of another Russian energy giant, Lukoil, to the U.S. government and other investors, including some with business ties to Mr. Witkoff and Mr. Kushner, causing consternation among some Washington lawmakers and outraging some of Ukraine’s supporters. The pair have also discussed the possibility of U.S. involvement in future Russian gas exports to Europe. (The administration has said that Mr. Kushner and Mr. Witkoff were guided only by U.S. interests.)
Geoffrey R. Pyatt, who served as an assistant secretary of state for energy resources during the Biden administration, said the idea of bringing Novatek into the high north of Alaska is a terrible one. “It is terrible on environmental grounds, it is a terrible idea on economic and geopolitical grounds, and most importantly this feeds the belief that Putin can get an out-of-jail-free card.”
The efforts to bring Novatek equipment to Alaska have also included a businessman, Gentry Beach, with ties to the Trump family. A college friend of Donald Trump Jr., the president’s eldest son, Mr. Beach served as a finance vice chairman for Mr. Trump’s 2017 inauguration. Mr. Beach said in February that he had held negotiations with Novatek about bringing its natural gas technology to Alaska.
Mr. Beach could not be reached for comment. It was not clear if he remained involved in the project, or whether he was aware of Novatek’s potential ownership stake in Polar LNG.
A spokesman for Donald Trump Jr. said the two men were no longer close, adding that Mr. Trump was not involved in the Polar LNG project. Novatek’s statement said that Mr. Beach had no role in its discussions to take a stake in Polar LNG. The U.S. official said Mr. Beach was not involved in the administration’s discussions related to Novatek.
Mr. Riddle is one of at least three Polar LNG executives who recently resigned. As they departed, Trump officials were notified about their concerns related to the secret Russian financing. Mr. Riddle said the executives had urged administration officials to investigate the matter. The Energy Department, where the warning was sent, did not respond when asked about the matter.
“I felt like I did the right thing to notify authorities at the appropriate time,” Mr. Riddle said.