Alaska gas startup Polar LNG loses its top executives over alleged secret Russian funding
Former CEO Joel Riddle and other executives say sanctioned Novatek was quietly bankrolling the North Slope project. Polar LNG says Riddle was fired for cause and that it complies with U.S. law.
By Robert Harrison ·
Why it matters: Polar LNG's ex-leaders allege hidden backing from sanctioned Novatek; the company says it follows U.S. law, and Treasury hasn't said whether any sanctions were broken.
For information only, not investment advice.
A group of American executives has quit Polar LNG, a startup that wants to liquefy and export natural gas from Alaska's North Slope, alleging they recently learned it was secretly funded by Russian gas giant Novatek, the Wall Street Journal reported. The Journal said high-ranking officials at the company shared their concerns with the Trump administration.
The New York Times and the Financial Times reported the claims first. Former CEO Joel Riddle said he had been led to believe the money came from Tech Wave Industrial Projects Management, an Abu Dhabi company, and later learned that at least some of it originated with Novatek, Alaska News reported, summarizing both papers. Messages reviewed by the Times show Novatek executives discussing as much as $15 million for Tech Wave to support Polar LNG. Novatek told the papers it is moving to become a minority shareholder. Tech Wave said Novatek has no ownership interest in it, Newsmax reported, citing the FT.
In a statement, Polar LNG called Riddle a disgruntled former employee who "was recently terminated from the company for cause." The Times reported he had resigned six days before the termination letter. The company says it works "in full compliance with applicable U.S. laws" and has applied to Treasury's Office of Foreign Assets Control for a license to buy an unfinished structure from Novatek. Treasury hasn't said whether any of the reported financing broke sanctions.
Polar LNG is not Alaska LNG, the state-partnered project led by Glenfarne. Here, who funds the startup is the whole dispute.
Sources
- U.S. Energy Execs Say They Quit Startup Over Undisclosed Russian Funding, The Wall Street Journal
- Ex-Polar LNG chief says Russia's Novatek supplied undisclosed startup funding, Alaska News
- Former CEO: Russian Firm Backed Alaska Gas Venture, Newsmax Wires via Yahoo News
- Polar LNG Announces Leadership Change and Outlines Vision for Alaska North Slope Development, Polar LNG
Tags: energy · regulation · white-house