Oil Deals

Hello, this is Michael Moss. Heather Cox Richardson is unable to read the letter today, so I will be reading it in her place. October 23, 2026. Despite Trump's statement yesterday that billionaire Elon Musk had removed the restrictions from Starlink and Starsheel that are crippling Ukraine's ability to protect itself from Russia, Ukraine President Volodymyr Zelensky said today, the restrictions continue. An article published tonight by Anton Troyanovsky and Eric Lipton in the New York Times sheds a spotlight on the oil deals that lie behind Trump's rush to normalize relations with Russia at Ukraine's expense, as well as repeated statements from him and his cronies that they want to open up business transactions with Russia as incentives for Russia's president Vladimir Putin to stop his war on Ukraine, an argument that, on its face, never made sense. Troyanovsky and Lipton report that a project designed to liquefy natural gas in Alaska and export it would not only use Russian technology, but also be funded with money from a Russian company close to Putin that is currently under U.S. sanctions. That company, Novotek, told the reporters that it is planning to take minority shareholder status in the Polar LNG project, a move the reporters call a striking effort by the Russian energy giant to seek ownership of American gas production. U.S. sanctions against Novotek mean Polar LNG would need special permission from the Treasury Department to use Novotek's equipment. The Graham Act sanctions bill, Congress recently passed specifically targets Novotek because of its ties to Putin, a likely reason that Trump just waved the new sanctions just two days before they were to go into effect. Joe Riddle, the chief executive officer of the company, Polar LNG, resigned when he learned that the funding came not from the United Arab Emirates as he had been told, but from Russia. It's not only unlawful, but it's not in the U.S. interest to have Russian technology controlling the commercialization of Arctic gas in the North Slope. Riddle told the New York Times reporters, "At least two other Polar LNG executives have also resigned, citing their concerns about the Russian financing." Talks about gas in Alaska were joined with talks about the sale of parts of Russian energy giant luke oil to the U.S. government and investors, some of whom are tied to Trump's son-in-law Jared Kushner and special envoy and business partner Steve Whitkov. He also involved in the Alaska project is Gentry Beach, who was a college friend of Donald Trump Jr. It seems that Trump, Putin and their allies in the administration are trying to replace the post-World War II international order and carve the world up into the system of spheres of influence they want as quickly as possible before the midterms. People to those systems are private deals that enrich Trump and his cronies. On October 20th, Kate Brown, Aaron C. Davis and Sebastian Rhotela of ProPublica reported that the deal to capture Venezuela's oil sets up a strategic partnership between the U.S. and a Venezuelan oligarch, Alejandro Betancourt, who has been accused of money laundering. A deal signed by Secretary of Defense Pete Hegseth and Secretary of State Marco Rubio calls for the U.S. to take a 35% stake in Betancourt's firm, North American Blue Energy Partners, by buying shares in a parent company that's registered in Barbados. A source told the ProPublica reporters that the people making the deal wanted to work with Betancourt because a publicly-traded company would have to report to shareholders. They wanted flexibility and secrecy. The registration of the parent company in Barbados enables the identities of its investors who could make fortunes from the deal to remain hidden. In exchange for the investment, the U.S. can buy up to 20% of the oil produced at a steep discount, but that cost doesn't factor in moving the oil, which is so thick it has to be blended with other products to flow through pipes. Betancourt's company currently produces only as much oil in one year as the U.S. uses in three days. The U.S. insists the deal is a good one for both countries, but it appears to violate Venezuela law which prohibits oil concessions longer than 25 years and to lock in U.S. control. The deal creates a powerful seven-member board to oversee the venture for 15 years. A majority of the board members must be U.S. citizens. The U.S. government can appoint a single, non-voting member of the board, and it can house Betancourt only with a super majority of five votes from the board. Any disputes over the company must be resolved not in Venezuela, but in Texas. The administration is also suggesting it will take steps to control Cuba. At 435 today, Secretary of State Rubio posted on social media to those who seek to create positive change in Cuba, now is the time. The disappointment of failed promises, corruption, and the privileged lives of only a few, sees this opportunity to create the change you desire through a discreet partnership with the CIA. Letters from an American was written by Heather Cox Richardson. It was produced at SoundScape Productions, Data Massachusetts, recorded with music composed by Michael Moss.