Sanctioned Novatek secretly funds Alaska gas deal in US-Russia peace talks

Key points

• Novatek, Russia's second-largest LNG producer and subject to US sanctions since 2022, secretly funded Polar LNG, a US company planning to export gas from Alaska.
• The funding was disguised as coming from a UAE company, but former CEO John Riddle discovered the true source and resigned in September 2026.
• Riddle notified the Trump administration, stating that Russian control of Arctic gas commercialization is unlawful and contrary to US interests.
• The deal was part of broader energy negotiations between US envoys Steve Witkoff and Jared Kushner and President Vladimir Putin in September 2026.
• Novatek confirmed it seeks minority shareholder status in the project, while the White House has not clarified if envoys knew of the financial link.

Background

This development follows a pattern of Western sanctions evasion, such as recent reports of South Korea supplying fuel to Russia via sanctioned tankers. It also contrasts with the UK's recent approval of new gas projects in Scotland, highlighting ongoing debates over fossil fuel reliance amid energy volatility.

How outlets are covering it

The New York Times emphasizes the diplomatic dimension, noting that the deal was discussed in high-level peace talks between the White House and Kremlin, potentially linking sanctions relief to energy cooperation. The Kyiv Independent focuses on the legal and ethical violations, highlighting the secret nature of the funding and the resignation of the project's former CEO. Both outlets agree that the arrangement poses risks to US interests, but the NYT frames it within the context of Trump's broader 'energy dominance' goals, while the Kyiv Independent stresses the conflict with existing sanctions regimes.

Why it matters

The exposure of this deal raises serious questions about the integrity of US-Russia peace negotiations and the effectiveness of sanctions enforcement. It suggests that economic interests may be overriding legal and geopolitical constraints, potentially undermining US credibility and the broader effort to isolate Russia over its war in Ukraine.

What to watch

The Trump administration is expected to investigate the reported violations, as urged by former Polar LNG CEO John Riddle. The outcome of these investigations could influence the trajectory of US-Russia energy deals and the broader peace process. Additionally, the deal's status may be affected by ongoing Russian attacks on Ukraine and shifts in US support for Kyiv.