Key facts
- Georgia's Kulevi oil refinery is replacing Russian crude with oil from Kazakhstan and Libya.
- The shift is to comply with upcoming EU sanctions.
- Owner Black Sea Petroleum aims to eliminate Russian feedstock by early September.
- A deadline of January 25, 2027, is set for full transition to non-Russian sources.
- India's imports of Russian crude oil reached a record high in July.
- July imports averaged 2.8 million barrels per day.
- Russian crude constituted over 55% of India's total crude oil imports in July.
- India's reliance on Russian oil is driven by shipping uncertainties in global waterways.
Georgia's Kulevi oil refinery is actively replacing Russian crude oil with supplies sourced from Kazakhstan and Libya in anticipation of upcoming European Union sanctions. Black Sea Petroleum, the owner of the refinery, has stated its intention to eliminate Russian feedstock from its operations by early September. The refinery is working towards a complete transition to non-Russian oil sources by January 25, 2027, a deadline set to ensure compliance with the new regulatory environment.
In contrast to Georgia's refinery, India has seen its imports of Russian crude oil reach an unprecedented level. In July, the nation imported an average of 2.8 million barrels per day of Russian crude. This volume accounted for more than 55% of India's total crude oil imports for that month. The sustained high level of imports from Russia is reportedly driven by persistent uncertainties surrounding shipping routes in critical global waterways, which may be affecting the availability or cost of alternative crude sources.
The divergence in import strategies highlights the complex global energy market dynamics following geopolitical shifts. While European-aligned entities like Georgia's refinery are moving to de-risk from Russian supply chains due to sanctions, major Asian consumers like India continue to leverage discounted Russian crude, balancing economic considerations with geopolitical pressures.