The leadership of Polar LNG, a U.S.-based energy startup, has undergone a significant transition following allegations that Russia’s largest LNG developer, Novatek, has been financing and directing the company’s operations. The venture, which launched in March 2026, proposed developing a liquefied natural gas project on Alaska’s North Slope. Senior managers departed in September after discovering Novatek’s financial involvement and operational influence during the month.
Joel Riddle, who served as the company’s chief executive, cited discomfort with Novatek’s role in funding and controlling the strategic direction of Polar LNG as his reason for resigning. According to reports, other executives also communicated concerns about Novatek’s involvement to U.S. government officials earlier that same month. The company’s initial proposition centered on utilizing modular gravity-based structures to accelerate construction and reduce costs, with plans to acquire an unfinished such structure from Novatek pending Treasury Department approval.
Polar LNG has stated that its development activities proceed in compliance with applicable U.S. law and has submitted an application to the Treasury’s Office of Foreign Assets Control for authorization to purchase equipment from Novatek. However, sources indicate no progress has been made on securing such a license. The company has also noted that Abu Dhabi-based engineering firm TechWave has provided capital and initiated preliminary engineering work.
The controversy carries potential implications for U.S. sanctions policy, as the country previously blacklisted Novatek’s Arctic LNG-2 project in 2023. While Novatek itself remains unclassified as a sanctioned entity, the company’s alleged involvement in a U.S. venture without prior regulatory approval raises compliance questions. Polar LNG currently projects commencing natural gas deliveries by the end of 2030, though the sanctions controversy may impact project viability.
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