The Russian company Novatek has been secretly funding a multibillion-dollar U.S. gas project that has been discussed in negotiations between the White House and the Kremlin over ending the war in Ukraine, the New York Times (NYT) first reported on Oct. 23.
Novatek is Russia's second-largest producer of liquefied natural gas (LNG) and has been subject to U.S. sanctions since the full-scale invasion of Ukraine in 2022.
Polar LNG, an American company aiming to liquefy and export natural gas from Alaska, received secret funding from Novatek in potential violation of sanctions, the NYT reported, citing the company's former CEO and two other sources familiar with the matter.
John Riddle, former CEO of Polar LNG, resigned from the company in September after learning about the hidden ties to Novatek. Riddle said he had been told the funding came from a company in the United Arab Emirates.
"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 NYT.
Riddle said he notified officials in the Trump administration about the secret Russian financing and urged them to investigate the situation.
Novatek was not only channeling funds to Polar LNG — it was negotiating a deal to sell technology to the U.S. company as part of a business agreement between Washington and Moscow. U.S. peace envoys Steve Witkoff and Jared Kushner discussed the proposal with Russian President Vladimir Putin during their visit in September, sources told the NYT.
It is not clear whether Witkoff or Kushner were aware of the financial relationship between Novatek and Polar LNG, as the deal was only broadly discussed, sources said.
The Novatek-Polar LNG proposal is reportedly one of several energy deals that U.S. President Donald Trump is looking to strike with Russia as he attempts to broker an end to the war against Ukraine. Another involves selling off parts of the Russian energy giant Lukoil to the U.S. government and other investors — including some with ties to Kushner and Wiktoff.
In a statement to the NYT, Novatek confirmed that it was looking to acquire "minority shareholder" status in the Polar LNG project.
The reported backdoor energy deals between the Kremlin and the White House have taken place against the backdrop of intensified Russian attacks on Ukraine — and a marked withdrawal of U.S. support from Kyiv.
Trump made his indifference to Russian sanctions clear when he announced a surprise deal with Putin to purchase diesel from Moscow to offset U.S. fuel prices. The first tanker of Russian diesel is reportedly now bound for the U.S.
The White House has also issued another sanctions waiver to Russia. In the last week, Witkoff has praised Putin as a "humanitarian" and U.S. Secretary of State Marco Rubio has claimed that the war in Ukraine is a narrow regional dispute that only concerns "11 percent of one part of that country."