The Georgian oil refinery in Kulevi that received “shadow fleet” vessels vows to stop processing Russian crude by September
Black Sea Petroleum, or BSP, the company that owns the oil refinery in Georgia’s port of Kulevi, has announced its plan to fully stop using Russian oil by September this year. The decision was made public through a statement on the company’s website.
The BSP statement highlighted the company’s plans to begin refining crude oil of entirely non-Russian origin starting from August-September this year. This move is expected to open doors to high-margin markets for products manufactured by Black Sea Petroleum, according to the statement.
Shift Away from Russian Oil
BSP processed more than 650,000 metric tons of crude in the first six months of the year. Under current plans, it will begin producing road bitumen in the first quarter of 2027 for both the domestic market and export. The plant is also expected to add capacity for aviation fuel production.
Background on the Kulevi Refinery
The Kulevi refinery, which received its first tanker in October 2025, is Georgia’s only full-cycle crude oil processing plant. In January 2026, Georgia exported $56 million worth of petroleum products, a 3,300% increase from the same period a year earlier.
Links to Russia and the Shadow Fleet
The Insider previously reported on links between Russia and the family of the refinery’s owner, along with the fact that oil was delivered to the plant by vessels that make up part of its “shadow fleet” — a collection of ageing, poorly maintained tankers that Moscow uses to skirt price restrictions and international sanctions imposed after the full-scale invasion of Ukraine.
EU Sanctions
In February, the EU promised to include the port of Kulevi in its next package of sanctions against Russia. However, it soon reversed the decision. “This initial position has been reassessed following the positive commitments that [Georgia’s] authorities and the port operator have taken,” EU sanctions envoy David O’Sullivan said in a letter to Georgia’s Foreign Ministry.
The move by Black Sea Petroleum to stop processing Russian oil is seen as a significant step towards reducing dependence on Russian crude. The company’s decision to shift away from Russian oil and towards non-Russian origin crude is expected to have far-reaching implications for the global energy market.
Original Article: Georgian oil refinery in Kulevi that received “shadow fleet” vessels vows to stop processing Russian crude by September — Theins