A group of American executives has resigned from Polar Train LNG, a start-up aiming to develop a $25 billion natural gas export terminal on Alaska’s North Slope, citing concerns over undisclosed financial and operational control by Russian energy company Novatek. The departures have raised questions about the involvement of Russian commercial interests in the U.S. energy sector amid ongoing sanctions related to Russia’s war in Ukraine.
Polar Train LNG was launched in March with backing from Tech Wave Industrial Projects Management, an Abu Dhabi-based engineering firm, and initially featured involvement from investor Gentry Beach, who is known for ties to the Trump family. The company sought to repurpose part of a partially constructed Novatek liquefied natural gas (LNG) terminal designed for Arctic conditions for use in Alaska. This equipment, as tall as the Statue of Liberty, was originally part of Novatek’s Arctic LNG 2 facility, which was blacklisted by the U.S. Treasury Department in 2023 under sanctions imposed during the Biden administration.
Joel Riddle, Polar Train’s former CEO and a former ExxonMobil executive, said he resigned last month after discovering that Novatek was providing financing and directing the strategic decisions of the project—contradicting earlier beliefs that the venture was funded solely by Tech Wave and Beach. Riddle expressed discomfort with Novatek’s influence, stating that he felt the Russian company was ultimately controlling the company’s direction. His resignation was followed by the departure of most of the executive leadership team.
Polar Train LNG has disputed these allegations, describing Riddle as a “disgruntled employee” who was dismissed. The company stated that development activities are being conducted in full compliance with applicable U.S. laws and that it is seeking American investors and partners. Tech Wave similarly denied that Novatek holds ownership interest in its business, adding that its CEO, Bjørn Gundersen—who previously worked at Novatek—has invested both personal and borrowed funds into the project.
Novatek confirmed that it granted Tech Wave the right to use its technology in Alaska and signed a memorandum of understanding with Polar Train in April, while Riddle was still CEO. The Russian company denied claims that access to its technology was contingent upon the lifting of U.S. sanctions.
U.S. government officials have acknowledged awareness of the situation but have offered limited comment. A White House official said the administration had only briefly discussed the matter, while a Treasury Department representative emphasized that potential sanctions violations are taken seriously but declined to comment on specific allegations.
The Polar Train project has not yet received approval from U.S. sanctions authorities to engage in negotiations involving Novatek’s assets. Attempts by Polar executives to secure a license from the Treasury Department reportedly encountered difficulties, particularly with sanctions legislation progressing through Congress that could further restrict transactions with Russian entities.
The prospect of monetizing the substantial natural gas reserves beneath Alaska’s North Slope has long intrigued U.S. energy stakeholders, though logistical and regulatory challenges have impeded development. Meanwhile, Novatek remains a significant player in global LNG markets despite international sanctions, maintaining a presence in U.S. and European circles through lobbying and legal efforts.
The episode highlights the complexities of energy investment amid geopolitical tensions and the challenges of balancing economic ambitions with compliance to sanctions regimes.