The Georgian government has adopted new rules allowing the imports of low-quality diesel fuel specifically for further processing at oil refineries. October 16, 2025 resolution applies only to refineries with an annual capacity exceeding 1 million tons, currently limited to the Kulevi oil refinery under construction.
According to the resolution, diesel imported by licensed refinery operators may bypass standard quality norms if it is used exclusively within the scope of licensed refining activities. The Kulevi refinery, located in the Free Economic Zone, is planned as a full-cycle facility producing Euro5 gasoline and diesel.
The project, managed by Black Sea Petroleum, has a total investment cost of $600 million. The first phase will enable the plant to process 1.2 million tons of crude oil annually, eventually increasing to 4 million tons. Construction is financed through private capital, a state fund, and loans from Georgian banks including Cartu, Halyk Bank, and Basisbank.
The Kulevi refinery is being developed in six phases. The initial phase focuses on the main infrastructure, while later stages will add a second railway overpass, reservoirs, and other industrial facilities. In late September, former Economy Minister Levan Davitashvili was appointed chairman of the plant’s supervisory board.
