Petrol importer cuts off Georgian company after it sold fuel to Abkhazia

Repsol, a Georgia-based petrol importer, has announced it will no longer sell to Georgia’s Solidus, a company that shipped 400 tonnes of petrol to Abkhazia. It confirmed that the petrol was sourced from its own inventory, but said it had no say over where it would be sold. The statement came amidst growing controversy over Solidus’ provision of petrol to Abkhazia.

On Saturday, in a statement published on the Facebook page of Connect, a network of petrol stations in the country, Repsol said Solidus had paid for the petrol and was gradually receiving the supply. The company said it had not agreed with Solidus on where the petrol would ultimately be sold.

‘Where LLC Solidus will sell the purchased oil products is not agreed with us and goes beyond the scope of our responsibility’, Repsol said.

Repsol added that it supplies petroleum products to more than 3,000 Georgian companies through wholesale and corporate sales, and that these transactions are conducted ‘in compliance with Georgian legislation and international regulations’.

It said the supply to Solidus was made within its contractual obligations and that they don’t plan to supply the company with anymore petroleum products.

Repsol primarily imports petroleum products and sells them on the Georgian market. It operates more than 140 petrol stations in Georgia under the Connect network.

The confirmation follows reports earlier this month that petrol had entered Abkhazia from territory controlled by the Georgian government.

On 12 August, Georgian Prime Minister Irakli Kobakhidze said that Georgian businesses had supplied petrol to Abkhazia, adding that such activity was being carried out ‘within the framework of the law on occupation’.

The owner of Solidus subsequently said that another 100 tonnes of fuel had been brought into Abkhazia, bringing the total supplied from Georgian-controlled territory to around 400 tonnes.

The supplies have sparked controversy on both sides.

Georgian opposition politicians and activists have criticised the deliveries and questioned whether petrol supplied through Georgian-controlled territory could ultimately be used by Russian forces stationed in or outside Abkhazia.

Meanwhile, petrol prices in Abkhazia are rising amidst fuel shortages. Several people from the Gali (Gal) district told OC Media that they were already experiencing difficulties obtaining petrol and were often forced to wait in long queues.

On 15 August, Abkhazia’s Energy Minister Batal Mushba announced that the price of petrol would increase from between ₽80–₽95 ($0.95–$1.10) to ₽110 ($1.40) per litre.

He also referred to petrol ‘purchased through alternative channels’ but did not specifically mention petrol from Georgian-controlled territory.

Mushba said that, amidst the shortage of petroleum products, securing petrol supplies was a priority, while the higher cost of petrol obtained through alternative channels was affecting the final price.

He also said companies were selling the products without profit, with the stated aim of ensuring that the domestic market had sufficient supplies.

Abkhazia has faced recurring petrol shortages in recent years, with its petrol market heavily dependent on supplies from Russia. More recently, shortages have again affected Abkhazia, with local authorities and businesses reporting difficulties securing supplies and rising petrol prices. The latest shortage has been linked to disruptions in petrol supplies from Russia, caused by Ukrainian attacks on oil refineries and other energy facilities.

For ease of reading, we choose not to use qualifiers such as ‘de facto’, ‘unrecognised’, or ‘partially recognised’ when discussing institutions or political positions within Abkhazia and South Ossetia. This does not imply a position on their status.