Georgia, October 25, 2025
A family with alleged connections to Russian military intelligence has initiated Georgia’s first oil refinery, raising significant national security concerns. This project is poised to enhance the state’s energy sector and create job opportunities, but the links to military intelligence provoke fears regarding potential security threats. Local authorities and critics have voiced their worries, emphasizing the importance of scrutinizing foreign investments in critical infrastructure.
Tbilisi, Georgia – New Oil Refinery Raises National Security Concerns
Tbilisi, Georgia – A family with alleged ties to Russian military intelligence has launched Georgia’s inaugural oil refinery, raising national security concerns while promising to boost the state’s energy sector and job opportunities.
Refinery Launch and Ownership
The Kulevi Oil Refinery, located near the Kulevi oil terminal on Georgia’s Black Sea coast, began operations in October 2025. This facility marks Georgia’s first domestic crude oil processing plant, aiming to reduce the country’s reliance on imported refined fuels. The refinery is owned by Black Sea Petroleum, a private company based in Tbilisi. The project was announced in 2023 and is considered one of the largest private investments in Georgia’s history, with a projected cost of $700 million. The refinery is designed to process 1.121 million metric tons of crude oil annually in its first phase, approximately 22,000 barrels per day, with plans to expand to 2.9 million metric tons per year in a second phase. The facility aims to supply fuel to both the domestic and export markets.
National Security Concerns
Recent reports have raised concerns about the refinery’s ownership connections. The business partner of Maka Asatiani, the owner of the refinery, is the son of a senior Russian military intelligence official. This association has led to apprehensions regarding potential national security implications.
First Oil Shipment
In October 2025, Russian company Russneft delivered its first shipment of oil to the newly constructed Kulevi oil refinery. The shipment, consisting of 105,340 metric tons of Siberian Light crude oil, was transported by the tanker Kayseri from Russia’s Black Sea port of Novorossiisk to the Kulevi Oil Terminal on October 6. This delivery signifies a strategic move for both countries: Russia seeks new export routes amid Western sanctions, and Georgia aims to reduce its dependence on foreign fuel supplies.
Strategic Importance
The establishment of the Kulevi Oil Refinery is a significant step for Georgia in enhancing its energy security and reducing reliance on imported petroleum products. The refinery is expected to play a critical role in diversifying energy imports and improving infrastructure for the energy sector.
Background Context
Georgia has historically depended on imports for its refined petroleum products. In 2023, the country imported 1.42 million metric tons of petroleum products, amounting to $1.16 billion. The launch of the Kulevi Oil Refinery is part of Georgia’s efforts to diversify its energy sources and improve its energy infrastructure.
Conclusion
The opening of Georgia’s first oil refinery by a family with alleged ties to Russian military intelligence has raised national security concerns. While the refinery promises to bolster the state’s energy sector and create job opportunities, the ownership connections warrant careful consideration. The facility’s operations and its impact on Georgia’s energy landscape will be closely monitored in the coming years.
FAQ
What is the Kulevi Oil Refinery?
The Kulevi Oil Refinery is Georgia’s first domestic crude oil processing plant, located near the Kulevi oil terminal on the Black Sea coast. It began operations in October 2025, aiming to reduce the country’s reliance on imported refined fuels.
Who owns the Kulevi Oil Refinery?
The refinery is owned by Black Sea Petroleum, a private company based in Tbilisi. Recent reports have raised concerns about the refinery’s ownership connections, as the business partner of Maka Asatiani, the owner of the refinery, is the son of a senior Russian military intelligence official.
What is the capacity of the Kulevi Oil Refinery?
The refinery is designed to process 1.121 million metric tons of crude oil annually in its first phase, approximately 22,000 barrels per day, with plans to expand to 2.9 million metric tons per year in a second phase.
What are the national security concerns associated with the refinery?
National security concerns have arisen due to the alleged ties between the refinery’s ownership and Russian military intelligence. The business partner of Maka Asatiani, the owner of the refinery, is the son of a senior Russian military intelligence official, leading to apprehensions regarding potential national security implications.
What is the significance of the first oil shipment to the refinery?
The first oil shipment to the Kulevi Oil Refinery, delivered by Russian company Russneft, signifies a strategic move for both countries. Russia seeks new export routes amid Western sanctions, and Georgia aims to reduce its dependence on foreign fuel supplies. The shipment consisted of 105,340 metric tons of Siberian Light crude oil, transported by the tanker Kayseri from Russia’s Black Sea port of Novorossiisk to the Kulevi Oil Terminal on October 6.
How does the refinery impact Georgia’s energy security?
The establishment of the Kulevi Oil Refinery is a significant step for Georgia in enhancing its energy security and reducing reliance on imported petroleum products. The refinery is expected to play a critical role in diversifying energy imports and improving infrastructure for the energy sector.
Key Features of the Kulevi Oil Refinery
| Feature | Details |
|---|---|
| Location | Near the Kulevi oil terminal on Georgia’s Black Sea coast |
| Ownership | Black Sea Petroleum, a private company based in Tbilisi |
| Initial Processing Capacity | 1.121 million metric tons of crude oil annually (approximately 22,000 barrels per day) |
| Expansion Plans | Increase to 2.9 million metric tons per year in a second phase |
| First Oil Shipment | Delivered by Russian company Russneft, consisting of 105,340 metric tons of Siberian Light crude oil, transported by the tanker Kayseri from Russia’s Black Sea port of Novorossiisk on October 6, 2025 |
| Strategic Importance | Aims to reduce Georgia’s reliance on imported refined fuels and enhance energy security |
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