Russian oil company Russneft supplied the first oil cargo in October to Georgia’s newly built Kulevi refinery on the Black Sea coast, Reuters reported on October 21.
Citing LSEG ship-tracking data and industry sources, the agency said, “The tanker Kayseri delivered 105,340 metric tons of Siberian Light oil grade from the Russian Black Sea port of Novorossiisk to the Kulevi Oil Terminal on October 6.”
Reuters noted in the report that Russia is seeking to diversify its exports amid Western sanctions over Ukraine, while Georgia, under the ruling Georgian Dream party, whose economic ties with Russia have deepened as relations with the West have deteriorated, “aims to reduce dependency on imports of fuel from Russia, Turkey, Azerbaijan, Romania and Kazakhstan.”
Responding to the report, Georgia’s Revenue Service under the Finance Ministry stated, “The ship and its owner company, as well as the consignor and consignee companies, are not under international sanctions (information is available in open sources),” adding that “the cargo was unloaded into a temporary storage customs warehouse to carry out subsequent customs control procedures.”
The Maritime Transport Agency of Georgia also stated that “the Panama-flagged vessel […] is not under international sanctions and does not appear on any list of companies associated with sanctioned entities.”
According to a Reuters report, the Kulevi refinery began operating in October, initially processing around 1.2 million tonnes of oil per year. The plan is to increase this figure to 4 million tonnes by 2028.
Georgian Dream authorities, including PM Irakli Kobakhidze and then-Economy Minister Levan Davitashvili, inaugurated the project one year ago, describing it as “one of the most important for the country’s energy security and independence.”
Valued at up to USD 700 million, the refinery represents the largest private investment project in Georgia’s post-independence history. It is operated by Black Sea Petroleum, owned by Maka Asatiani, a Georgian business figure. The company’s board is chaired by Levan Davitashvili, the ex-Economy Minister who was removed from his ministerial post in June. Following his removal, Davitashvili was appointed as Georgian Dream Prime Minister Irakli Kobakhidze’s chief adviser on economic affairs and as Secretary of the Economic Council, a coordinating body chaired by the Prime Minister.
The Reuters report comes as Moscow faces an energy crisis amid Ukrainian drone strikes targeting the Russian oil industry. The news also follows expanded Western sanctions, including EU measures targeting refineries used by Moscow outside Russia, as well as restrictions on “refined petroleum products made from Russian crude oil and coming from any third country.”
Georgia has been importing Russian oil, including crude, and an investigative report by iFact collective previously suggested that Russian fuel may be reaching Europe through Georgia.
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