Russia Delivers First Oil Shipment to Georgia's New Kulevi Refinery

Russian oil company Russneft has delivered its first shipment of crude oil to Georgia's newly operational Kulevi oil refinery, marking a significant economic exchange between the two countries, despite the absence of formal diplomatic relations since their 2008 conflict over South Ossetia and Abkhazia. The tanker Kayseri transported over 105,000 metric tons of Siberian Light crude from Novorossiysk to the Kulevi Oil Terminal on October 6. Georgia's Kulevi refinery, which began operations this month, aims initially to process 1.2 million tons of crude annually, with plans to expand to 4 million tons by 2028 to reduce reliance on fuel imports and supply both domestic and export markets. Under the ruling Georgian Dream party, Tbilisi has strengthened economic ties with Russia even as relations with Western countries have deteriorated, amid accusations of democratic backsliding and political tensions. Russia is seeking new export markets to counter Western sanctions imposed due to its invasion of Ukraine. The warming economic ties contrast with the continued political and diplomatic estrangement between Moscow and Tbilisi since their 2008 war.