Russia has delivered its first crude shipment to Georgia’s new Kulevi refinery, marking a commercial milestone between the two countries despite the lack of formal diplomatic relations. The shipment, sent by Russian oil company Russneft, comprised 105,340 tons of Siberian Light crude, according to vessel tracking data from London Stock Exchange Group (LSEG) and industry sources.
The crude was loaded at Russia’s Black Sea port of Novorossiisk aboard the tanker Kayseri and delivered to the Kulevi Oil Terminal on October 6. This operation represents the first direct supply to the refinery, which began operations this month aiming to reduce Georgia’s dependency on fuel imports from Russia, Turkey, Azerbaijan, Romania, and Kazakhstan.
Commercial cooperation without diplomatic framework
Diplomatic relations between Russia and Georgia have been severed since the 2008 military conflict over the separatist regions of South Ossetia and Abkhazia. However, under the ruling Georgian Dream party, Georgia has deepened its economic ties with Moscow, even as its relationships with Western nations have significantly deteriorated.
A market trader familiar with the shipment confirmed that the delivery may pave the way for a regular flow of Russian crude to Kulevi. Russneft did not respond to requests for comment on the transaction.
Georgia’s industrial capacity ramp-up
The Kulevi refinery currently has an annual processing capacity of 1.2 million tons, equivalent to approximately 24,000 barrels per day. Industry plans foresee a gradual increase to 4 million tons per year by 2028, targeting both domestic supply and export markets.
The delivery comes as Russia seeks to diversify its oil export routes amid Western sanctions linked to the war in Ukraine. Meanwhile, Georgia is working to develop a national hydrocarbon processing chain to stabilise its supply and boost refined product exports.
