Polar LNG Director Resigns Over Alleged Russian Financing and Sanctions Risks
A proposed project to export liquefied natural gas directly from Alaska’s North Slope faces acute regulatory and political scrutiny after its chief executive resigned over allegations that a Russian company secretly financed the venture. Joel Riddle stepped down as the head of Polar LNG following disclosures that Novatek, Russia’s second-largest gas producer, provided $5 million in funding with plans to supply up to $10 million more, according to reporting by The New York Times.
The enterprise, operated under Abu Dhabi-based parent company Tech Wave Industrial Projects Management, plans to import a partially constructed gas-liquefaction plant from Russia’s sanctioned Arctic 2 LNG project and install it in the shallow Chukchi Sea waters. Polar LNG has maintained that Novatek does not have an ownership stake and that the reporting is misleading. However, the revelations have sparked sharp pushback from Alaska’s congressional delegation and triggered deep concerns over potential violations of U.S. sanctions tied to the war in Ukraine.
Executives Depart Amid Disputes over Russian Financing
The leadership crisis at Polar LNG intensified in September when Riddle and chief financial officer Dan Chandra departed the company, as detailed in reporting by the Financial Times. Riddle stated that he resigned because he grew uncomfortable with Novatek financing and ultimately directing the strategic direction of the enterprise while trying to bring on U.S. investors.
“I resigned as chief executive officer of Polar LNG because I felt uncomfortable that the Russian company Novatek was financing and ultimately controlling the strategic direction of the company,” Riddle said in an interview.
Polar LNG countered that Riddle was a disgruntled employee who had been terminated, adding that the company is investigating claims concerning his departure that may result in litigation. The firm hired Tim Talkington, a longtime investment banker and former chief executive of Goldman Sachs Bank Russia, to lead the project moving forward.
While Tech Wave and Novatek representatives have denied that the Russian firm provided operational funding or secured an ownership stake prior to regulatory approval, Polar LNG acknowledged that Novatek has paid part of the purchase price to Tech Wave. Tech Wave did not immediately respond to inquiries regarding why it accepted payments from Novatek before securing U.S. ownership conditions and federal clearances.
Political Opposition in Washington
The project’s ties to Russian technology and funding have placed it squarely in the crosshairs of federal lawmakers. A project to export liquefied natural gas directly from Alaska’s North Slope and sell it overseas faces new scrutiny after its director resigned, alleging that a Russian company secretly financed the project despite U.S. sanctions on Russia. Although the project’s framework had reportedly surfaced during talks between Washington and Moscow aimed at ending the war in Ukraine, Alaska’s elected officials remain firmly opposed.
U.S. Lisa Murkowski stated that she will not back any initiative supporting Russia’s war efforts or relying on Russian financing and technology for North Slope resources. Senator Dan Sullivan’s office characterized the project as a distraction, emphasizing that his focus remains strictly on the separate, $50 billion Alaska LNG export initiative. Meanwhile, an official with the U.S. Treasury Department’s Office of Foreign Assets Control noted that while the agency does not comment on specific allegations, it takes potential sanctions violations extremely seriously.
