The Kulevi oil terminal on Georgia’s Black Sea coast may be sanctioned by the European Union, as several media reports said the bloc’s upcoming 20th sanctions package against Russia includes it. The terminal has recently come under particular scrutiny over its possible role in facilitating Russian oil exports.
Radio Free Europe/Radio Liberty’s Georgian Service reported on February 9 that its central bureau had obtained the draft proposal, which, if adopted, would prohibit transactions with four port terminals in Russia and third countries, including Kulevi. The proposal reportedly states that the port is used for the maritime transportation of crude oil or oil products produced in Russia or exported by Russian vessels using irregular and high-risk shipping practices.
Reuters also reported on February 9 that the sanctions package includes the Kulevi port, “barring EU companies and individuals from conducting transactions” with the terminal. The package, which requires endorsement from all EU member states, could be adopted this week as the bloc’s foreign ministers meet on February 12. If adopted, it would also mark the first time the European Union targets a port in a third country.
While Kulevi Oil Terminal and Sea Port have been owned and operated by the State Oil Company of the Azerbaijan Republic (SOCAR) for years, the more recently launched Kulevi refinery is owned by Georgian businesswoman Maka Asatiani.
Georgian authorities dismissed concerns that the EU sanctions package will target the Kulevi terminal. Georgian Dream Prime Minister Irakli Kobakhidze told reporters on February 10 that the government is ready to speak with EU officials about the Kulevi port, which he said has “strategic importance.”
“We are ready to have fact-based consultations with EU representatives; we will present answers to them as needed,” Kobakhidze said. “We comply with the sanctions regime properly. This is our general stance, and as for specific issues, we are ready for consultations with the European Union.”
Outlining the upcoming measures on February 6, European Commission President Ursula von der Leyen said the package would expand sanctions against Russia’s “shadow fleet” of oil tankers.
“We are listing 43 more vessels part of the shadow fleet – reaching 640 in total,” von der Leyen said. “We also make it more difficult for Russia to acquire tankers to be used for the shadow fleet and add sweeping bans on provision of maintenance and other services for LNG tankers and icebreakers to further dent gas export projects.”
The Kulevi refinery drew controversy in October after Russian oil company Russneft supplied its first oil cargo to the facility. While Georgian authorities maintained at the time that the shipment complied with international sanctions, critics warned that such deliveries could create a potential channel for re-exporting Russian oil under a Georgian designation.
Soon after Reuters’ reporting, the tanker Kayseri, which delivered the shipment to Kulevi, was also added to the EU’s sanctions list targeting vessels involved in Russia’s shadow fleet. Russneft itself was sanctioned by the United Kingdom in December. London has called on Georgia to curb its reliance on Russian oil and to strengthen efforts to prevent imports from the Russian “shadow fleet.”
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