The Georgian government has amended regulations governing the storage and exports of fuel from free economic zones (FEZs), a move that primarily affects the Kulevi oil refinery, the only refinery in the country with an annual capacity exceeding 1 million tons.
According to the new resolution adopted on October 20, 2025, refined petroleum products produced in or intended for FEZs may now be stored outside the zone for up to six months. The rule specifically applies to oil refineries capable of processing at least one million tons annually, criteria that currently only the Kulevi refinery meets.
The $600 million project, implemented by Black Sea Petroleum, began construction late last year within the Kulevi Free Economic Zone. The refinery will operate as a full-cycle facility, producing Euro-5 standard gasoline and diesel. Once the first phase is completed, the plant will process 1.2 million tons of crude oil per year, with plans to expand capacity to 4 million tons in later stages.
Financing for the project combines private and institutional capital. The Development Fund of Georgia (formerly the Partnership Fund) has provided a $5 million syndicated loan alongside Cartu Bank, Basisbank, and Halykbank, which jointly contributed $45 million. The construction is divided into six phases, with key infrastructure currently under development. In September, former Economy Minister Levan Davitashvili was appointed Chairman of the Supervisory Board overseeing the refinery project.
