Brussels targeted a major Georgian refinery over alleged processing of Russian crude. The move signals wider pressure on entities supporting Moscow’s oil revenue.

The EU has imposed sanctions on the Georgian oil refining plant Kulevi for processing Russian crude oil, marking Brussels’ first action against a large Georgian company as part of widening pressure on entities outside Russia that support its oil profits.

The plant is located in the western part of Georgia on the Black Sea. In October last year it drew attention after Reuters reported that the Russian company Russneft (RNFT.MM) began supplying crude to the plant.

Black Sea Petroleum (BSP), which owns and operates the plant, did not respond to requests for comment on the sanctions list.

The Georgian Foreign Ministry expressed concern about Kulevi’s inclusion on the sanctions list and assured that all measures are being taken so that Georgia is not used to circumvent sanctions.

“Georgia remains ready to cooperate with EU institutions and to provide them with all the information they require.”

– Interpress

In the context of Brussels’ next steps, BSP said earlier this month that from August to September the plant will halt processing of Russian crude and instead will source crude oil from Turkmenistan and Kazakhstan.

According to a senior European official, talks with Kulevi are ongoing, and the plant has committed to diversifying its sources of Russian oil.

“We will give them a certain credit of trust, but we want to see that they fulfill their promises, and then we can propose to the Council to remove them from the sanctions list.”

– Senior European official

Georgia and Russia have not maintained formal diplomatic ties since 2008, but Tbilisi, according to government critics, has drawn closer to Moscow during the rule of the Georgian Dream party.

Kulevi began operations in October 2025 with an initial processing capacity of 1.2 million metric tons per year. In the first half of this year the plant processed over 650 thousand tons.

A study by the Center for Energy and Clean Air Research (CREA) showed that between October 2025 and May 2026 Kulevi received six shipments of Russian crude oil. During this period Spain and Bulgaria received cargoes via Kulevi.

These developments underscore the EU’s efforts to monitor oil supply chains and support diversification of imports in the region.