Secret Russian funding for US gas project revealed as Trump pursues energy deals with Kremlin

Novatek channeled money to Alaska LNG venture; former CEO says it violated sanctions, notified White House

By LineZotpaper AI staff

Published25 October 2026

Read Time3 min

Illustration: Secret Russian funding for US gas project revealed as Trump pursues energy deals with Kremlin

A Russian energy company under US sanctions secretly funded a multibillion-dollar American gas project in Alaska, the New York Times has reported, raising questions about enforcement as the Trump administration pursues energy deals with Moscow as part of its effort to end the war in Ukraine.

According to the New York Times, as reported by the Kyiv Independent, Novatek, Russia's second-largest producer of liquefied natural gas and under US sanctions since 2022, provided secret funding to Polar LNG, a company seeking to export natural gas from Alaska. The funding may have violated US sanctions, the report said, citing Polar LNG's former CEO and two other sources.

John Riddle, who resigned as Polar LNG's CEO in September after learning about the hidden ties, told the NYT he had been told the funds 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 said. He said he notified officials in the Trump administration about the secret Russian financing and urged them to investigate.

Novatek confirmed in a statement that it was looking to acquire "minority shareholder" status in the Polar LNG project. Beyond the funding, Novatek was also negotiating a deal to sell technology to the US company.

The proposal was discussed during a visit to Russia in September by US peace envoys Steve Witkoff and Jared Kushner, who raised it with Russian President Vladimir Putin, 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 the Trump administration is considering as part of its efforts to broker an end to the war. Another involves selling parts of the Russian energy giant Lukoil to the US government and other investors, including some with ties to Kushner and Witkoff.

The energy talks have taken place as Russian attacks on Ukraine have intensified and US support for Kyiv has withdrawn. Trump has made his indifference to sanctions clear by announcing a deal to purchase Russian diesel, with the first tanker bound for the US. The White House has also issued another sanctions waiver to Russia. In recent days, Witkoff praised Putin as a "humanitarian" and Secretary of State Marco Rubio described the war in Ukraine as a narrow regional dispute concerning "11 percent of one part of that country."

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Analysis

Why This Matters

The revelation could complicate the Trump administration's peace negotiations with Russia if it appears to involve sanction-busting.
It raises questions about whether US sanctions on Russia are being enforced even within the administration's own policy circle.
The secret deals could undermine Ukraine's position and trust in any mediated settlement.

Background

Novatek is Russia's second-largest producer of liquefied natural gas and has been under US sanctions since Russia's full-scale invasion of Ukraine in 2022. Polar LNG is a US company aiming to develop an LNG export facility in Alaska. The reported funding arrangement emerged as part of broader energy negotiations between the Trump administration and the Kremlin, which have included a surprise deal to purchase Russian diesel and discussions about divesting parts of Lukoil.

Key Perspectives

John Riddle, former Polar LNG CEO: The secret funding is unlawful and not in the US interest; he notified Trump administration officials and called for an investigation. Novatek: The Russian company confirmed it was seeking minority shareholder status in the Polar LNG project. Trump administration peace envoys: Discussed the proposal broadly with Putin but may not have known about the financial relationship between Novatek and Polar LNG, according to sources cited by the NYT.

What to Watch

Whether US law enforcement or sanctions enforcement agencies open an investigation into the Novatek-Polar LNG arrangement.
The trajectory of energy negotiations between Washington and Moscow, including the Russian diesel deal and any further sanctions waivers.
The impact on Ukraine's support and the credibility of the US-led peace process.

Sources

Sanctioned Russian energy giant secretly funded US gas project, NYT reports · Kyiv Independent

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedA Russian company secretly funded a multibillion-dollar US gas project in Alaska as the Trump administration pursued energy deals with Russia to help end the war in Ukraine.Kyiv Independent: “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”
Partly supportedThe summary says Novatek channelled money to Polar LNG and that its former CEO said the funding violated sanctions and notified the White House.Kyiv Independent: “Polar LNG, an American company aiming to liquefy and export natural gas from Alaska, received secret funding from Novatek in potential violation of sanctions”
SupportedNovatek is Russia’s second-largest LNG producer and has been under US sanctions since 2022.Kyiv Independent: “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.”
SupportedThe reported secret funding may have violated US sanctions.Kyiv Independent: “received secret funding from Novatek in potential violation of sanctions”
SupportedRiddle said, “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.”Kyiv Independent: “"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.”
SupportedRiddle said he had been told the funding came from a company in the United Arab Emirates.Kyiv Independent: “Riddle said he had been told the funding came from a company in the United Arab Emirates.”
SupportedRiddle said he notified Trump administration officials about the financing and urged them to investigate.Kyiv Independent: “Riddle said he notified officials in the Trump administration about the secret Russian financing and urged them to investigate the situation.”
SupportedWitkoff and Kushner discussed the technology-sale proposal with Putin during a visit to Russia in September.Kyiv Independent: “U.S. peace envoys Steve Witkoff and Jared Kushner discussed the proposal with Russian President Vladimir Putin during their visit in September”
SupportedAnother reported energy deal involves selling parts of Lukoil to the US government and other investors, including some with ties to Kushner and Witkoff.Kyiv Independent: “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.”
Partly supportedTrump announced a deal to buy Russian diesel, and the first tanker was bound for the US.Kyiv Independent: “The first tanker of Russian diesel is reportedly now bound for the U.S.”
SupportedWitkoff praised Putin as a “humanitarian.”Kyiv Independent: “In the last week, Witkoff has praised Putin as a "humanitarian"”
SupportedRubio described the war as a narrow regional dispute concerning “11 percent of one part of that country.”Kyiv Independent: “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."”