The Alaska Gas Deal That Wasn't All-American: How a Russian Energy Giant Secretly Funded the Company It Was Supposed to Supply

 

The Alaska Gas Deal That Wasn't All-American: How a Russian Energy Giant Secretly Funded the Company It Was Supposed to Supply

**By [moonlight editory team] | October 24, 2026 | 12-Minute Read**

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## The Short Version (For the Busy American)

On paper, it looked like a perfect Trump administration energy play: an American company, Polar LNG, would buy Russian technology to tap Alaska's vast natural gas reserves, liquefy it, and ship it to allies. Energy dominance. American jobs. A geopolitical win.

Then the story cracked open.

According to a New York Times investigation published this week, **Polar LNG was secretly funded by Novatek—the same Russian energy giant that was supposed to supply the technology** . The money was routed through a company in the United Arab Emirates, and the American CEO says he was misled about where it came from .

The revelation has landed in the middle of the highest-stakes negotiations of the Trump presidency: the talks to end the war in Ukraine. President Putin discussed the plan last month with Trump's peace envoys, **Steve Witkoff and Jared Kushner** . And now the question is whether a secret Russian ownership stake in an American energy company is a bridge to peace—or a backdoor for sanctions evasion.

**The punchline:** A project branded as "America's Arctic Advantage" was quietly becoming a vehicle for Russian equity in American gas production. And the executives who discovered it resigned.

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## What Actually Happened: The Secret Financing

Let me walk you through the structure, because the details matter enormously.

### The Setup

Polar LNG's plan was straightforward on its face. Alaska produces enormous amounts of natural gas as a byproduct of oil extraction. Most of it is reinjected into the earth because there's no way to move it to market. Polar LNG proposed to change that by buying a massive **640,000-ton concrete-and-steel gravity-based structure** from Novatek—the same technology Novatek uses at its Arctic LNG 2 project in Russia—and placing it on the seabed off Alaska's northern coast. The gas would be liquefied and shipped to Asia .

The company's website featured an American flag and a bald eagle, boasting that "Polar LNG helps ensure the United States leads" and calling the project "America's Arctic Advantage" .

### The Lie

But Polar LNG was not an all-American affair.

**Joel Riddle**, who served as Polar LNG's CEO until he resigned in September, told the Times he had been **misled about the sources of the company's startup funding**. The money ostensibly came from a company in the United Arab Emirates. In reality, it came from **Novatek**—the Russian energy giant that was also slated to supply the technology .

Novatek is **already under U.S. sanctions** . And it was quietly positioning itself to become a **minority shareholder** in Polar LNG—a striking effort by a sanctioned Russian company to seek ownership of American gas production .

### The Resignations

Riddle is one of **at least three Polar LNG executives who recently resigned** after learning about the secret Russian financing. As they departed, they notified Trump administration officials—specifically the Energy Department—about their concerns and urged an investigation. The Energy Department did not respond to questions about the matter .

"I felt like I did the right thing to notify authorities at the appropriate time," Riddle said .

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## The Human Touch: What This Means for Real Americans

Let me put this in terms that actually connect to your life.

### The Sanctions Loophole

If a sanctioned Russian company can secretly fund an American firm and acquire an equity stake in a project on U.S. soil, then **sanctions aren't working the way you think they are**.

The whole point of sanctioning Novatek was to punish Russia for its war in Ukraine and limit its access to Western capital and technology. If Novatek can route money through the UAE, buy into an American company, and end up owning a piece of Alaska's energy future, the sanctions become a **suggestion, not a barrier** .

For American taxpayers, that's a problem. Every dollar that flows to Novatek is a dollar that supports the Russian economy—and, by extension, the war effort.

### The Peace Negotiation Problem

Here's where it gets even more complicated. The Alaska project isn't just a business deal. It's **part of the peace negotiations**.

Putin discussed the plan with Witkoff and Kushner last month. It's one of a series of energy deals White House officials believe could **smooth relations with Moscow and eventually pave the way to end the war** .

The logic is transactional: give Russia a stake in American energy, and maybe Putin becomes more willing to negotiate. But critics see it differently. **Geoffrey Pyatt**, who served as assistant secretary of state for energy resources under Biden, called it **"terrible on environmental grounds, 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 Environmental Question

Alaska's North Slope is one of the most sensitive ecosystems in America. The project would place a massive industrial structure on the seabed off the coast, in an area called Milne Point. The gas would be liquefied and shipped through **icy Arctic waters**—a route that's risky even with ice-breaking ships .

If the project proceeds, it would be one of the largest industrial developments in the American Arctic. And it would be partly owned by a sanctioned Russian company.

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## Frequently Asked Questions

### What exactly did Novatek do?

According to the New York Times, Novatek—a Russian energy giant under U.S. sanctions—**secretly funded Polar LNG**, an American company that planned to use Novatek technology to liquefy and export Alaska natural gas. The funding was routed through a company in the United Arab Emirates. Novatek was also positioning itself to become a **minority shareholder** in Polar LNG .

### Who is Joel Riddle and why does he matter?

Riddle was the CEO of Polar LNG until he **resigned in September 2026**. He told the Times he had been **misled about the sources of the startup funding** and that he notified the Energy Department about his concerns when he left. At least two other executives resigned alongside him .

### How is this connected to the Ukraine peace talks?

President Putin discussed the Alaska gas plan with Trump's peace envoys, **Steve Witkoff and Jared Kushner**, last month. White House officials believe a series of energy deals with Moscow could help smooth relations and pave the way to ending the war. The Alaska project is one of those deals .

### What does Novatek get out of this?

Two things. **First**, it sells its technology—the gravity-based structure used for liquefaction. **Second**, it acquires an **equity stake** in Polar LNG, giving it a piece of American gas production. For a sanctioned company, that's a significant win .

### Is this legal?

That's the unanswered question. Novatek is under U.S. sanctions. Routing money through the UAE to fund an American company and acquire an equity stake could violate those sanctions—or it could exploit loopholes. The Energy Department was notified of the concerns but did not respond to questions. No investigation has been publicly announced .

### What is the gravity-based structure?

It's a massive **640,000-ton concrete-and-steel device** that sits on the seabed. Equipment on top refrigerates natural gas until it becomes liquid, which can then be loaded onto ships. Novatek uses the same approach at its Arctic LNG 2 project in Russia .

### Who else is involved?

**Gentry Beach**, a college friend of Donald Trump Jr. and a former finance vice chairman for Trump's 2017 inauguration, said in February that he had held negotiations with Novatek about bringing its technology to Alaska. Novatek said Beach had no role in its discussions about the Polar LNG stake. A spokesman for Donald Trump Jr. said the two men are no longer close and that Trump Jr. was not involved in the project .

### What happens next?

The project's future is uncertain. The executives who discovered the secret financing have resigned and notified the government. The Energy Department hasn't publicly responded. And the project is tangled up in the broader Ukraine peace negotiations. Watch for whether an investigation is launched—and whether the deal survives the scrutiny.

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## The Path Forward: What to Watch

### The Energy Department's Response

Riddle and his colleagues sent a warning to the Energy Department. The department hasn't responded publicly. Watch for whether an investigation is opened—and whether the findings are made public.

### The Sanctions Question

If Novatek's funding structure violated U.S. sanctions, the Treasury Department's Office of Foreign Assets Control (OFAC) could take action. Watch for any enforcement announcements or guidance on whether this structure is permissible.

### The Peace Talks

The Alaska project is one of several energy deals being discussed with Moscow. If the peace negotiations progress, the project could move forward with government support. If they stall, it could be shelved—or become a political liability.

### Polar LNG's Future

With its CEO and at least two other executives gone, and its funding sources under scrutiny, Polar LNG faces an uncertain future. Watch for whether new leadership is installed, whether the project is restructured, or whether it collapses entirely.

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## Conclusion: The Flag and the Fine Print

Here's what I want you to take away from this story.

Polar LNG's website had an American flag and a bald eagle. It hired lobbyists in Washington and Alaska. It spent **$380,000 a quarter** on lobbying, including a former Trump Interior Department official . It branded itself as "America's Arctic Advantage."

But behind the flag and the fine print, a sanctioned Russian energy giant was quietly buying in.

The executives who discovered the truth resigned and warned the government. The Energy Department hasn't said whether it's listening. And the project is now a test case for something bigger than Alaska gas: **can a sanctioned Russian company buy its way into American energy through the back door, while the White House calls it diplomacy?**

The answer will shape not just this project, but the entire architecture of sanctions, energy policy, and the fragile negotiations to end the war in Ukraine.

The flag was on the website. The money came from Moscow.

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## Disclaimer

This article is for informational purposes only and does not constitute financial advice, investment advice, or legal advice. The author is not a licensed financial advisor or attorney. All investments involve risk, including the potential loss of principal. Readers should conduct their own research and consult with a qualified professional before making any financial or legal decisions. Data and figures cited are accurate as of the date of publication but may change. The allegations and details described are based on reporting by The New York Times and have not been independently verified by the author.

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