US Waiver Lets Russian Diesel Back Onto World Markets as Former Executives Say Novatek Secretly Ran an Alaska Gas Project

Hours after a call between President Trump and President Vladimir Putin on October 9, the US Treasury issued a six-month waiver that allows Russian diesel to be sold on the global market, OilPrice reported. The stated aim is lower fuel prices before the November 3 midterms. The author of the OilPrice analysis calls the policy a "reverse Nixon" strategy: bring Russia in and shut China out. The Office of Foreign Assets Control (OFAC) license, General License 135, covers the sale, delivery and import of Russian-origin diesel until April 7, 2027.

Trump said Putin agreed to release up to 4.8 million tonnes of diesel, according to Ship & Bunker. Of that, 300,000 tonnes would come immediately and 500,000 tonnes in November, with more depending on the condition of Russian refineries. The near-term volume is small. By one estimate, the October tranche equals about half of one day of US diesel consumption.

A second deal now faces allegations of hidden Russian control. Former Polar Train LNG chief executive Joel Riddle told the Financial Times that Novatek, Russia's largest liquefied natural gas (LNG) producer, financed the strategic Alaska project and directed it without Washington's approval. Nearly the entire executive team left with him, including the chief financial officer, Traders Union reported. Text messages reviewed by The New York Times show Novatek Deputy Chairman Denis Solovyov and Chief Executive Leonid Mikhelson discussing up to $15 million for Tech Wave, Polar LNG's parent company in Abu Dhabi, according to Raw Story's account of that report. Polar LNG rejects the claims. It calls Riddle a disgruntled employee who was dismissed for cause and has named Tim Talkington acting chief executive.

The project has been reported to sit inside the Trump administration's peace talks with Moscow. Novatek has made no public response in the reports cited here.