Key facts
- Georgia's Kulevi oil refinery is replacing Russian crude with supplies from Kazakhstan and Libya.
Georgia's Kulevi oil refinery is replacing Russian crude with supplies from Kazakhstan and Libya to comply with upcoming EU sanctions. Owner Black Sea Petroleum aims to eliminate Russian feedstock by early September, with a deadline of January 25, 2027, to fully transition to non-Russian sources.
The refinery's shift away from Russian crude is a direct response to EU sanctions aimed at curtailing Russia's oil revenue, potentially impacting global crude supply dynamics and demonstrating the reach of European sanctions policy.
Georgia's sole oil refinery, Kulevi, is actively transitioning away from Russian crude oil supplies to comply with impending European Union sanctions. Black Sea Petroleum, the refinery's owner, announced that it received and processed Kazakh crude in July and will continue to do so through August. Additionally, a shipment of Libyan crude is expected between August 20 and August 30 under a new supply agreement that extends through 2027.
The company plans to completely phase out Russian crude by early September, accelerating a diversification strategy that previously included Turkmenistan. The EU's 21st sanctions package, enacted on July 23, includes a transaction ban on Kulevi, but provides a six-month grace period, setting a deadline of January 25, 2027, for the refinery to demonstrate a full shift to non-Russian feedstocks. EU officials have indicated that the refinery could be removed from the sanctions list upon verification of compliance.
Kulevi refinery commenced operations in October 2025 with an initial annual processing capacity of 1.2 million metric tons. In the first half of 2026, it processed over 650,000 tons, surpassing half of its first-phase capacity. A planned expansion aims to increase capacity to 4.5 million tons annually. Between October 2025 and May 2026, the refinery processed six shipments of Russian crude. Subsequent cargoes of refined products reached Spain and Bulgaria, drawing scrutiny over potential Russian crude re-entry into Western markets via Georgia. The recent purchases of Kazakh and Libyan oil provide the necessary evidence for Brussels to reconsider the refinery's sanctions status.