{"text":[[{"start":0,"text":"The former chief executive of a $25bn US gas export venture has accused Russian energy giant Novatek of secretly controlling the project, triggering a mass resignation of company leadership over fears it is violating US sanctions."}],[{"start":26.92,"text":"The company, Polar Train LNG, is developing a gas export terminal on Alaska’s North Slope, part of a Trump administration initiative to expand US energy exports to Asia and strengthen its position in global energy markets."}],[{"start":41.16,"text":"The venture was launched with the involvement of Gentry Beach, an investor with ties to Donald Trump’s family. It has also featured in high-level negotiations between Washington and Moscow over potential business deals that could help secure an end to Russia’s war in Ukraine, according to people familiar with the discussions."}],[{"start":58.68,"text":"Polar LNG was launched in March with plans to repurpose a partially constructed Novatek gas terminal for installation in Alaska. The company sought permission from US sanctions authorities at the Treasury department to negotiate with the Russian group but had not yet received approval."}],[{"start":74.88,"text":"Joel Riddle, Polar LNG’s American chief executive, told the FT that he discovered Novatek was already financing the venture and directing its operations before the necessary approvals were obtained. He resigned in September, followed by almost the entire executive leadership team, including chief financial officer Dan Chandra, executive vice-president Jim Smith and executions manager Jody Trantham."}],[{"start":99,"text":"The allegations raise questions about the extent to which Russian commercial interests are already seeking a foothold in the US energy industry before any agreement has been reached. They threaten to embroil a strategically important US energy project in the fraught relationship between Washington and Moscow, despite the Trump administration’s abrupt favourable shift towards Russia."}],[{"start":119.6,"text":"Polar LNG said in a statement that Riddle was a “disgruntled employee” and was terminated from the company. “Development activities are being pursued in full compliance with applicable US laws,” it said."}],[{"start":130.96,"text":"A White House official said: “This has only been broadly and briefly mentioned to the [administration] but no granular discussions have occurred.”"}],[{"start":137.2,"text":"In a statement, Novatek said it had agreed to grant Abu Dhabi-based Tech Wave Industrial Projects Management the right to use its technology in Alaska and signed a memorandum of understanding in April with Polar Train when Riddle was its chief executive."}],[{"start":152.4,"text":"“To execute such a large-scale project, requisite approvals will need to be obtained from US and Russian authorities,” Novatek said."}],[{"start":159.84,"text":"A Treasury official said: “While we do not comment on allegations of sanctions violations, we take potential violations extremely seriously.”"}],[{"start":168.28,"text":"Novatek developed a gas export facility on Russia’s Siberian north coast, Arctic LNG 2, that was expected to produce nearly 20mn tonnes of LNG per year. But it was blacklisted by the US Treasury in 2023 as part of a package of hundreds of sanctions targets imposed by the Biden administration to punish Russia for the Ukraine invasion, and has struggled to become fully operational."}],[{"start":192.36,"text":"Under the terms being negotiated between the US and Russia, Novatek would lend its expertise to help build the facility in Alaska in exchange for lifting sanctions on Arctic LNG 2, the people said."}],[{"start":204.4,"text":"Novatek said: “We deny any third-party bad-faith allegations that the access to our solution is conditioned upon the lifting of sanctions from the Arctic LNG 2 Project. Novatek is focused on utilising its technology in Alaska and views this opportunity as a standalone and self-sufficient project.”"}],[{"start":221.56,"text":"Riddle, a former ExxonMobil engineer recruited to lead Polar LNG, said he initially believed the project was funded by Beach and Tech Wave. The company is led by Norwegian businessmen Rajeev Lehar and Bjørn Gundersen; Gundersen previously worked for Novatek. Tech Wave did not respond to requests for comment."}],[{"start":238,"text":"As it began to take shape, Riddle said he learned that Beach had not invested in the venture and was not a shareholder, officer or director of the company. As financing demands mounted, he said he became aware that Novatek was providing the capital."}],[{"start":253.32,"text":"“I resigned as chief executive of Polar LNG because I felt uncomfortable that the Russian company Novatek was financing and ultimately controlling the strategic direction of the company,” said Riddle."}],[{"start":264.52,"text":"“Building an LNG facility in Alaska is a very strategic project for the US and as a patriot I feel this needs to be developed using US technology and funded by US investors, not a Russian company.”"}],[{"start":357.36,"text":"Beach did not respond to a request for comment."}],[{"start":357.86,"text":"Novatek said: “As far as we know, Mr. G. Beach was an incumbent officer of a holding company Polar Eagle LNG LLC, and currently bears no relation to the project or to Polar Train LNG LLC/Polar Eagle LNG LLC.”"}],[{"start":358.36,"text":"WhatsApp messages seen by the FT show Denis Solovyov, a senior executive and management board member of Novatek, discussing the financing of the project and trying to “expedite the money transfer process” to Polar Train LNG."}],[{"start":358.86,"text":"When a new sanctions package proposed by the late senator Lindsey Graham passed Congress, Riddle sought an opinion from US law firm Baker Botts to assess the risks presented by the company’s strategy. He also sought advice on the sanctions risks presented by Gundersen’s role as a proposed ultimate investor in Polar LNG, due to his ties with Novatek."}],[{"start":359.36,"text":"In its opinion, Baker Botts said US agencies “appear to view Mr. Gundersen’s proposed participation in the project as presenting potential Russia-related sanctions concerns”."}],[{"start":359.86,"text":"On September 19, a day after the Lindsey Graham sanctions bill passed Congress, Riddle tendered a letter of resignation to Gundersen."}],[{"start":360.36,"text":"Following Riddle’s resignation, Polar LNG appointed Tim Talkington, a former chief executive of Goldman Sachs’ Russia operation, as acting chief executive. Talkington did not respond to a request for comment."}],[{"start":360.12,"text":"Polar LNG said in a statement TechWave had provided financing to Polar LNG and “initiated preliminary engineering work involving US contractors”. “The project is seeking American investors and implementation partners,” it added."}],[{"start":373.6,"text":"A recent thawing of US-Russia relations suggests Washington could still back Polar LNG. This month Trump invoked a waiver in the Graham Act exempting Moscow from economic penalties. He also clinched a deal with Vladimir Putin to import millions of tonnes of Russian diesel into the US."}],[{"start":389.48,"text":"Additional reporting by Harry Dempsey in Tokyo"}],[{"start":398.96,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792806229_6210.mp3"}