One proposal raised in U.S.-Russia negotiations would have had Novatek help develop an Alaska gas export plant in exchange for Arctic LNG 2 sanctions relief, people familiar with the talks told the Financial Times in a report published October 23 and 24. A White House official played the idea down, and Novatek denied that its Alaska role hinges on any easing of sanctions.
Where it stands: As of October 26, the United States had announced no change to the blocking sanctions on Arctic LNG 2’s operator, which the State Department imposed on November 2, 2023, and no public reporting showed a deal had been reached.
The responses came fast. A White House official told the FT: “This has only been broadly and briefly mentioned to the [administration] but no granular discussions have occurred.” Novatek rejected the notion that its participation depends on any lifting of sanctions, describing Alaska as a stand-alone venture, according to the FT’s account. Polar LNG, the Alaska startup, called its former CEO Joel Riddle a “disgruntled former employee” and said it complies with U.S. law. Its Abu Dhabi parent, Tech Wave, said Novatek has no ownership interest in it.
The broader financing allegations are covered in our main report. This article looks only at the reported trade and what it would mean.
What the FT Reported About Arctic LNG 2 Sanctions Relief
The FT’s description rests on unnamed people familiar with the negotiations. Ukrainska Pravda, summarizing the FT, said the talks covered “a potential exchange under which Novatek would provide its expertise for the construction of the Alaska terminal in return for sanctions being lifted on Russia’s Arctic LNG 2 project.” None of the accounts reviewed report that either government agreed to it.
The New York Times reported a related point: that Vladimir Putin raised the Alaska plan with the two Trump envoys, Jared Kushner and Steve Witkoff, in September. The paper added that nothing indicated either man was aware of Polar LNG’s Novatek connection, Raw Story reported. The NYT account, as summarized there, does not describe a specific sanctions-for-gas trade; that framing comes from the FT’s sources.
The idea fits a pattern reported earlier in the year. In February, Reuters, citing the NYT, wrote that business proposals floated alongside the peace talks were designed to encourage the Kremlin toward a Ukraine deal and Washington toward easing sanctions, according to the wire report. Ukrainska Pravda noted reports on October 9 that Moscow wanted sanctions relief in talks over an “energy ceasefire.”
Who Has Said What
| Party | Position (as reported) |
|---|---|
| FT sources | Proposal paired Alaska help with Arctic LNG 2 relief |
| White House official | Mentioned only “broadly and briefly”; no detailed talks |
| Novatek | Role not conditioned on sanctions relief |
| Polar LNG | Complies with U.S. law; disputes Riddle |
| Geoffrey Pyatt, Biden-era official | Says idea “feeds the belief” Putin can escape sanctions |
Pyatt, a former State Department energy official under President Biden, told the NYT the concept “feeds the belief that Putin can get an out-of-jail-free card.” That is his view as a critic of the idea. No U.S. official quoted in the coverage reviewed has endorsed such a trade.
What Arctic LNG 2 Is, and Who Owns It
Arctic LNG 2 is Novatek’s gas liquefaction project on Siberia’s Gydan Peninsula. The FT, as relayed by Newsmax, put its design output at close to 20 million metric tons of LNG annually. When partners approved the project in 2019, Novatek held 60%, and France’s Total (now TotalEnergies), China’s CNPC and CNOOC, and a Japanese group each held 10%, according to partner Mitsui.
The U.S. block on the operator arrived as output started. Marine Insight, citing the UK government, reported that the U.S. move in late 2023 prompted foreign shareholders to suspend their participation. Britain said the plant shipped just 1.3 million metric tonnes in 2025 against 13.5 million tonnes of annual capacity.
What Relief Would, and Would Not, Change
Lifting the U.S. block would remove a barrier the sanctions record describes in detail. The State Department’s designation bars U.S. persons from dealings with the operator unless they are “authorized by a general or specific license issued by OFAC or exempt.” Relief could in principle take the form of a license or a removal from the list. Because State imposed this listing, removal would run through State’s own review process, according to OFAC FAQ 897.
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The constraints are commercial as well as legal. The company is badly short of LNG carriers because sanctions shut it out of ordinary ship finance, insurance and management, industry sources told gCaptain in June. High North News reported in October 2025 that the project had gone more than a year without buyers before a Chinese terminal began taking cargoes.
U.S. relief would not touch European or British measures, which those governments set themselves. The EU in 2024 barred new investment and the supply of goods, technology and services to complete projects such as Arctic LNG 2, European Pravda reported. Britain has kept adding vessels tied to the plant, including in June 2026, and gCaptain reported that the EU market will close to Russian LNG from January 1, 2027.
Where U.S. Policy Has Moved
The Biden administration rolled out Arctic LNG 2 measures repeatedly in 2023 and 2024. High North News reported in October 2025 that the current administration had taken no new action against the project since January 2025.
On October 16, President Trump waived the Graham Act’s Russia provisions. ABC News reported that the order also waived a clause requiring earlier sanctions to stay in place, “clearing the way for the president to take unilateral action on them as well.” The order did not itself lift the Arctic LNG 2 designation, and as of October 26 no such step had been announced. Details are in our Graham Act waiver report and the Novatek sanctions explainer.
Frequently Asked Questions
Did the U.S. agree to lift sanctions on Arctic LNG 2 in exchange for Alaska gas help?
No agreement has been reported. The Financial Times cited people familiar with the talks describing such a proposal. An administration official described it as raised only in broad, brief terms, and Novatek denied any link between its Alaska role and sanctions relief.
Why is Arctic LNG 2 under U.S. sanctions?
The State Department designated the project operator, LLC Arctic LNG 2, in a November 2, 2023 action taken as part of efforts to limit Russia’s future energy production and export capacity.
Would U.S. sanctions relief let Arctic LNG 2 sell gas in Europe?
Not by itself. EU and UK sanctions are separate. The EU barred investment and supplies to complete projects like Arctic LNG 2 in 2024, and reports say the EU market closes to Russian LNG from January 1, 2027.
Did Witkoff and Kushner know about Polar LNG’s Novatek ties?
According to the New York Times, nothing indicates either envoy was aware of the Novatek connection, although the Russian president raised the Alaska idea in talks with both men.
Sources
- Former CEO: Russian Firm Backed Alaska Gas Venture — Newsmax via Yahoo News, October 24, 2026
- Russia secretly financed Alaska gas project — Ukrainska Pravda, October 24, 2026
- Whistleblower CEO quits over hidden Russian cash behind gas deal in Trump peace talks: NYT — Raw Story, October 24, 2026
- Top executives quit $25 bn US gas project over alleged Russian control — Business Standard, October 25, 2026
- Trump ally ties up with Russia’s Novatek on natural gas in Alaska, NYT reports — Reuters via WHBL, February 20, 2026
- Taking Additional Sweeping Measures Against Russia — U.S. Department of State (archived), November 2, 2023
- FAQ 897: How can I ask OFAC to remove me or my organization from an OFAC sanctions list? — Office of Foreign Assets Control, U.S. Treasury, current as of October 2026
- Final Investment Decision for Arctic LNG 2 Project in Russia — Mitsui & Co., September 5, 2019
- UK Becomes First G7 Nation To Sanction Vessels Linked To Russia’s Arctic LNG 2 Project — Marine Insight, June 2026
- UK Targets New Arctic LNG 2 ‘Shadow Fleet’ Vessels as Russia Scrambles for Tankers — gCaptain, June 16, 2026
- UK Sanctions Target Russian Arctic LNG, With US Remaining on Sideline and EU Continuing Debate — High North News, October 16, 2025
- Council of EU adopts 14th package of sanctions against Russia, targeting Russian LNG for first time ever — European Pravda, June 24, 2024
- Trump signs order waiving Graham Act sanctions on Russia — ABC News, October 2026
This article is news reporting and analysis based on the public sources listed above, as they stood on the dates shown. Where officials, lawmakers or analysts disagree, including on whether an action is lawful, their positions are attributed to them; Donald Trump Class Action is not a court and nothing here is legal advice. Facts in a developing story can change.