Trump Envoys Discuss Alaska Gas Project Tied to Sanctioned Russia

A multibillion-dollar natural gas project in Alaska has come under scrutiny after a Russian energy company subject to U.S. sanctions was linked to its funding, according to The New York Times. The development has raised concerns about Russian involvement in American energy production while President Donald Trump's envoys negotiate with Vladimir Putin over ending Russia's war against Ukraine.

Polar LNG, an American energy startup, aims to extract natural gas from Alaska's North Slope using Russian technology and export it to international allies. Joel Riddle, who resigned as the company's chief executive last month, told The New York Times that he had been misled about the source of its financing.

Riddle said he had been led to believe that the money came from a company in the United Arab Emirates. However, at least some of the funding came from Novatek, one of Russia's largest energy companies, which faces partial U.S. sanctions.

Riddle raised concerns about the implications for American interests and control over energy technology.

"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," Riddle told The New York Times.

The project has also featured in diplomatic discussions. People familiar with the talks told The New York Times that Trump's special envoys, Steve Witkoff and Jared Kushner, discussed the Alaska gas venture with Putin during negotiations last month over a potential agreement to end the war in Ukraine.

Novatek's involvement could trigger additional regulatory scrutiny. Under U.S. sanctions, the Treasury Department would need to approve the use of the company's equipment in Alaska. A sanctions bill passed by Congress and named after the late Republican Sen.

Lindsey Graham of South Carolina specifically targets Novatek because of its ties to Putin. Trump waived the law's sanctions last week.

Novatek told The New York Times on Friday that it was moving to obtain minority shareholder status in the Polar LNG project. Such an arrangement could give the sanctioned Russian energy company a financial stake in U.S. natural gas production.

A memorandum prepared for Polar LNG by outside law firm Baker Botts also warned that perceived connections to Novatek could jeopardize licenses and other regulatory approvals, according to The New York Times. The memo said federal officials had already expressed concern that one of Polar LNG's investors had links to Novatek and might be acting on the Russian company's behalf.

Ilya Zaslavskiy, a gas industry consultant in Washington who studies Russian sanctions and energy issues, criticized the company's dealings with Novatek and questioned the Russian firm's involvement in negotiations related to the war.

"Any approach by Novatek to transfer technology should be seen as a Kremlin attempt to co-opt U.S. policymakers in order to undermine U.S. foreign policy toward Ukraine and our allies," Zaslavskiy told The New York Times.

The White House did not immediately respond to a request for comment, according to The Daily Beast.