Spike in Georgia’s Oil Exports Raises Questions

2026-02-20 - 14:04

Recent official data pointing to a spike in Georgia’s oil exports has drawn scrutiny from observers, some of whom have questioned whether the growth could be attributable to the country possibly facilitating Russian oil re-exports. On February 19, Geostat published January foreign trade data showing that petroleum and petroleum oils ranked as the country’s second-largest export commodity after motor cars. Exports amounted to USD 58.7 million, which is 12.2% of total exports, marking a 401% increase compared to the same month last year, when exports of that commodity stood at just USD 11.71 million (2.9% of total exports). January’s domestic export data also showed that petroleum and petroleum oils were the leading export product, totaling USD 56.2 million, or 18% of overall domestic exports. This represents a 3,224% increase compared to the same month last year, when exports of the commodity amounted to just USD 1.68 million. The surge comes amid questions about whether Georgia could be facilitating the reexport of sanctioned Russian oil to Western markets. Attention has focused on the Kulevi refinery on the Black Sea coast, which reportedly received its first batch of Russian crude oil in October from the Russian company Russneft. Recent media reports have also suggested that the Kulevi oil terminal could be included in the EU’s 20th sanctions package against Russia. While the Kulevi Oil Terminal and Sea Port have long been owned and operated by the State Oil Company of the Azerbaijan Republic (SOCAR), the more recently inaugurated Kulevi refinery is owned by Black Sea Petroleum, a company run by Georgian businesswoman Maka Asatiani. Georgian authorities have repeatedly denied helping Moscow circumvent sanctions and maintain that the country complies with Western restrictions. Economist and former president of the National Bank of Georgia, Roman Gotsiridze, questioned the export figures, noting that the surge is particularly striking given that the Kulevi refinery is not yet fully operational. In a Facebook post, Gotsiridze outlined two possible explanations behind the figures. In one scenario, he suggested, oil exported from Georgia could have been imported into the country as Russian diesel or gasoline, or as a diesel semi-finished product that was mixed with other substances and reexported. If that were the case, he argued, it would amount to sanctions evasion, “since the Russian petroleum product was sold in an EU country (Malta).” In a second scenario, he argued, Russian crude oil arrived at the Kulevi terminal, and Azerbaijani refined petroleum products were exported but labeled as produced in Georgia. He further claimed that SOCAR, which owns the Kulevi terminal, is also “in serious trouble,” and should respond to the allegations. “The issue of sanctioning its port in the European Union is under consideration, and Italy is currently hindering this process. One of the reasons is likely that Azerbaijani gas reaches Italy via Georgia.” The issue of possible inclusion of the Kulevi refinery in the EU sanctions was also reportedly discussed during the February 12 meeting between EU Ambassador to Georgia Pawel Herczyński and Georgian Dream’s First Deputy Foreign Minister Giorgi Zurabashvili. In December, investigative outlet iFact reported that Russian oil products may be reaching EU countries such as the Netherlands and Greece, as well as Switzerland, via Georgia. The investigation cited trade database analysis and tanker-tracking data, and pointed to companies allegedly linked to the ruling Georgian Dream party and Russian business circles. Local watchdog Transparency International Georgia has also warned that the Kulevi refinery could create conditions for Russian oil to be reexported as Georgian-origin products, which may be seen by the West as a sanctions evasion scheme for Moscow. Also Read: 12/01/2026 – Revenue Service Stresses Georgia’s Sanctions Compliance Over Russian-Origin Oil Shipment 19/12/2025 – UK Calls on Georgia to Curb Russian Oil Imports Amid Wider Sanctions