Georgia’s sanctioned Kulevi refinery says switch to non-Russian crude is under way

Georgia's only oil refinery says it has begun replacing Russian crude with supplies from Kazakhstan and Libya.

The update comes after the European Union sanctioned the refinery for processing Russian crude as part of its effort to curb revenues funding Moscow's war against Ukraine. Brussels gave the company six months to end its reliance on Russian oil before the restrictions take effect.

In a statement released on 31 July, Black Sea Petroleum (BSP), which operates the Kulevi Oil Refinery on Georgia's Black Sea coast, said implementation of its crude supply diversification plan was already under way and remained on schedule.

Kazakh crude already being refined

The company said the refinery began processing crude oil of Kazakh origin at the beginning of July, with the remaining contracted volumes to be refined during August.

BSP also announced that, under an agreement signed with an international trading company on 3 July, a cargo of Libyan crude is expected to arrive at Kulevi between 20 and 30 August. The contract runs through the end of 2027 and includes an option to extend it.

According to the company, the transition will allow the refinery to operate entirely on non-Russian crude beginning in August and September, in line with plans announced on 1 July.

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Company seeks to satisfy EU sanctions requirements

The statement follows the European Union's decision on 24 July to sanction the Kulevi refinery as part of its 21st sanctions package against Russia. The measures prohibit transactions with the refinery after a six-month transition period, giving the company time to end its reliance on Russian crude.

BSP said the European Commission had acknowledged during a 24 July press briefing that the transition period was intended to enable the refinery to diversify its crude supplies. The company said the steps it has already taken are consistent with that objective and the timeline set by Brussels.

The refinery said it would continue working with the European Commission and other relevant authorities while providing "clear, verifiable evidence" of its progress toward eliminating Russian feedstock.

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First major Georgian company sanctioned by the EU

The sanctions marked the first time the EU targeted a major Georgian company under its Russia sanctions regime.

The refinery came under scrutiny after Reuters reported in 2025 that it had begun processing crude supplied by Russian producer Russneft. According to research by the Centre for Research on Energy and Clean Air (CREA), the refinery received six shipments of Russian crude between October 2025 and May 2026, while refined products were exported to EU member states including Spain and Bulgaria.

EU officials have said the refinery could be removed from the sanctions list if it demonstrates that it has fully phased out Russian crude in line with its commitments.