The European Union has imposed sanctions on Georgia's Kulevi oil refinery for processing Russian crude, marking the first time Brussels has targeted a major Georgian company under its sanctions regime against Russia, according to Reuters.
The measure forms part of the EU's 21st sanctions package adopted on 24 July in response to Russia's full-scale war against Ukraine. It prohibits transactions with the refinery beginning in six months, broadening the bloc's efforts to target companies outside Russia that help sustain Moscow's oil revenues, Reuters reported.
First sanctions against a major Georgian company
Located on Georgia's Black Sea coast, the Kulevi refinery came under scrutiny after Reuters reported in October 2025 that Russian oil producer Russneft had begun supplying crude to the facility.
Georgia's Foreign Ministry said it was concerned by Kulevi's inclusion in the sanctions package but remained ready to cooperate with EU institutions and share information to ensure the country is not used to circumvent sanctions, according to Reuters.
Refinery pledges shift away from Russian crude
Earlier this month, Black Sea Petroleum said it would stop refining Russian crude from August-September and instead source oil from Kazakhstan and Turkmenistan. The company said the switch would allow its petroleum products to access higher-value export markets.
Black Sea Petroleum reportedly processed more than 650,000 tonnes of crude during the first half of 2026. It announced a modernization partnership with US industrial technology company Honeywell and plans to begin producing road bitumen in early 2027 and aviation fuel later that year.
According to Reuters, an EU official said discussions with the refinery remain ongoing and welcomed its commitment to phase out Russian crude, while stressing that the bloc wants to see the pledge implemented before considering lifting the sanctions.
"We'll give them some credit, but we want to see... that they do what they promised, and then we can propose to the council to delist them," the official told reporters in Brussels, according to Reuters.
Georgia’s only oil refinery to stop processing Russian crude from August, company says
Energy trade under scrutiny
Although Georgia and Russia have had no formal diplomatic relations since the 2008 war, the ruling Georgian Dream party has expanded economic ties with Moscow during Russia's full-scale invasion of Ukraine, including increased imports of Russian oil.
Research by the Centre for Research on Energy and Clean Air (CREA), cited by Reuters, found that the Kulevi refinery received six shipments of Russian crude between October 2025 and May 2026. During that period, refined products from Kulevi were exported to EU member states including Spain and Bulgaria.
According to CREA's research, also cited by Reuters, the EU and the United States imported 1.46 million tonnes of oil products worth €811 million from the Kulevi port between February 2023 and February 2026.
