Several American energy executives have resigned from Polar LNG, an Alaska-based liquefied natural gas startup, after uncovering alleged undisclosed financing and control by Russian gas producer Novatek. The Wall Street Journal reported that the executives, including former CEO Joel Riddle, left after discovering that Novatek appeared to be directing the company's strategic decisions and financing without their knowledge.
Polar LNG, established in March 2026, aimed to acquire partially completed infrastructure from Novatek's sanctioned Arctic LNG 2 project in Russia. The equipment was intended to support natural gas exports from Alaska's North Slope. However, the venture faced regulatory and geopolitical risks due to the involvement of Russian assets subject to U.S. sanctions.
The dispute highlights the challenges of Arctic energy projects, particularly those involving sanctioned Russian equipment. While repurposing discounted Russian equipment could reduce development costs, uncertainties over ownership, financing, and government approvals threaten the project's viability. Polar LNG needed a Treasury Department license to acquire equipment from the sanctioned Arctic LNG 2 project but had not received approval.
Senior Polar officials raised concerns about Novatek's involvement with the Trump administration in early September. The company had previously sought support from the White House and the National Energy Dominance Council, but those efforts reportedly showed little progress. The proposed Alaska development also faced substantial engineering and transportation obstacles, including moving massive equipment from Russia and dredging the seabed near the North Slope.