Razom We Stand, a Ukrainian-led organization working to cut Russia’s fossil fuel revenues, today urges the United States administration to revoke the license that allows Russian diesel into the country, and to block any role for Novatek, a Russian gas company under partial US sanctions, in a liquefied natural gas (LNG) project in Alaska.
The Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License 135 on October 9, authorizing transactions in Russian diesel, including imports into the US, until April 7, 2027. The 2022 Ending Importation of Russian Oil Act, which bans Russian energy imports, remains on the books. Three tankers carrying about 140,000 metric tons of Russian diesel left for US ports in October, but the Talisman and the Leruo have since changed course and the Agioi Fanendes has no confirmed US port of entry, according to vessel tracking. No cargo has yet been delivered.
Dr. Svitlana Romanko, Founder and Executive Director of Razom We Stand, said;
“Americans were told this diesel deal would bring cheaper fuel, but a few tankers of Russian diesel will not change what they pay at the pump. They will add to the money Moscow’s military has to keep striking Ukrainian civilians and cities. The tankers turning away show how fragile this deal is, and the United States must put an end to this war funding deal by revoking the license, not leave the door open for the next Russian cargo or the next dirty deal with Putin.”
Pressure is also building across the political spectrum. New Jersey Gov. Mikie Sherrill (D-NJ) warned a dozen port and terminal operators on November 2 to turn away Russian diesel tankers, saying importing the fuel breaks federal law. On October 26, a bipartisan group of lawmakers, including Sen. Thom Tillis (R-NC), warned banks, port authorities and fuel distributors that handling Russian diesel could lead to congressional investigations, and a bipartisan House bill would block the deal.
The risk goes beyond diesel. The New York Times and the Financial Times reported in late October that Polar LNG, a planned $25 billion export project on Alaska’s North Slope, received undisclosed funding from Novatek, according to its former chief executive, Joel Riddle, who resigned in September amid controversy over the deal with Russia amid ongoing brutality against Ukrainians. The Times reported that Novatek told it that it wants a minority stake, and that President Vladimir Putin raised the project with US envoys Steve Witkoff and Jared Kushner in September, with no indication that they were aware of Novatek’s funding. The Financial Times reported that Polar LNG has sought permission from OFAC to buy a partly built Russian plant, and that talks between American and Russian officials explored Novatek providing its technology in exchange for relief from US sanctions on its Arctic LNG 2 project. Novatek denies the two are linked, and Polar LNG so far denies any wrongdoing.
“Alaska’s gas must not become a bargaining chip with a Russian company that helps to fund the Kremlin’s war,” Dr. Romanko added. “To stand with Ukraine, the United States must rule out any role for Novatek in Alaska and any sanctions relief for Arctic LNG 2. Sanctions relief for Novatek would reward Putin for his war crimes, instead of end them.“
Razom We Stand calls on the US administration and Congress to:
- Revoke OFAC General License 135 now, rather than let it run to April 7, 2027, and enforce the 2022 law banning Russian energy imports.
- Publish the facts: which companies have sought or used the license, how much Russian diesel has been offered to US buyers, and the legal basis for the license.
- Block Novatek from Alaska: deny any license, financing or equity stake for Novatek in Polar LNG or any other US energy project, reject Polar LNG’s request to buy the Russian plant, and require public disclosure of who funds the project.
- Rule out sanctions relief for Novatek’s Arctic LNG 2 project and for the Russian Direct Investment Fund (RDIF), the Russian state investment fund, whose removal from the sanctions list the Treasury Department is reviewing, until Russia ends its attacks on Ukraine.
- Open bipartisan oversight: Congress should request documents and hold public hearings on the diesel license and the Novatek-Alaska talks.
