Georgia’s Kulevi refinery aims to avoid EU sanctions with Kazakh, Libyan imports

Georgia's Kulevi oil refinery has started to diversify away from Russian crude, securing supplies from Kazakhstan and Libya, owner Black Sea Petroleum LLC said July 31, in a bid to avoid EU sanctions.

The 24,000 b/d plant on the Black Sea began processing Kazakh-origin crude oil at the beginning of July and will continue to do so in August, the company said in a statement.

It also signed an agreement for a cargo of Libyan-origin crude, which it expects to receive by the end of August. The agreement runs through 2027 and includes an extension option, BSP said.

The statement comes after the EU said July 23 that it has sanctioned Kulevi as part of its 21st sanctions package, but the restriction will only come into force in six months' time. If Kulevi successfully diversifies away from Russian crude, the ban will not be enforced.

BSP said that its purchases from alternative suppliers are consistent with that objective and timeframe.

"BSP will continue to implement its feedstock diversification plan, engage constructively with the European Commission and other relevant authorities, and provide clear, verifiable evidence of progress," it said.

Kulevi processed 650,000 mt in the first half of 2026, the company said previously.

The 1.2 million mt/year refinery launched operations in late 2025. It currently produces gasoil, naphtha and fuel oil. It is aiming to increase its output capacity to up to 4.5 million mt/year according to plans posted on its website.

BSP said that it remains committed to operating in line with all applicable legal and regulatory requirements and contributing to Georgia's economic development and energy security.

"Taken together, these measures are designed to ensure a smooth transition to entirely non-Russian feedstock while maintaining continuity and stability in the refinery's operations," it said.