Georgia's only oil refinery says it has begun replacing Russian crude with supplies from Kazakhstan and Libya.

The update comes after the European Union sanctioned the refinery for processing Russian crude as part of its effort to curb revenues funding Moscow's war against Ukraine. Brussels gave the company six months to end its reliance on Russian oil before the restrictions take effect.

In a statement released on 31 July, Black Sea Petroleum (BSP), which operates the Kulevi Oil Refinery on Georgia's Black Sea coast, said implementation of its crude supply diversification plan was already under way and remained on schedule.

Kazakh crude already being refined

The company said the refinery began processing crude oil of Kazakh origin at the beginning of July, with the remaining contracted volumes to be refined during August.

BSP also announced that, under an agreement signed with an international trading company on 3 July, a cargo of Libyan crude is expected to arrive at Kulevi between 20 and 30 August. The contract runs through the end of 2027 and includes an option to extend it.

According to the company, the transition will allow the refinery to operate entirely on non-Russian crude beginning in August and September, in line with plans announced on 1 July.

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Company seeks to satisfy EU sanctions requirements

The statement follows the European Union's decision on 24 July to sanction the Kulevi refinery as part of its 21st sanctions package against Russia. The measures prohibit transactions with the refinery after a six-month transition period, giving the company time to end its reliance on Russian crude.

BSP said the European Commission had acknowledged during a 24 July press briefing that the transition period was intended to enable the refinery to diversify its crude supplies. The company said the steps it has already taken are consistent with that objective and the timeline set by Brussels.

The refinery said it would continue working with the European Commission and other relevant authorities while providing "clear, verifiable evidence" of its progress toward eliminating Russian feedstock.

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First major Georgian company sanctioned by the EU

The sanctions marked the first time the EU targeted a major Georgian company under its Russia sanctions regime.

The refinery came under scrutiny after Reuters reported in 2025 that it had begun processing crude supplied by Russian producer Russneft. According to research by the Centre for Research on Energy and Clean Air (CREA), the refinery received six shipments of Russian crude between October 2025 and May 2026, while refined products were exported to EU member states including Spain and Bulgaria.

EU officials have said the refinery could be removed from the sanctions list if it demonstrates that it has fully phased out Russian crude in line with its commitments.

Long-range Ukrainian drones struck the Ilsky oil refinery in Russia's Krasnodar Krai on July 7, hitting one of the facility's technological workshops, a source in Ukraine's military intelligence (HUR) told the Kyiv Independent.

Located roughly 500 kilometers (311 miles) from Ukrainian-controlled territory, the refinery is among the largest in southern Russia, producing over 6 million tons of fuel annually.

It is involved in the reception, storage, and processing of hydrocarbons and distributes refined products via road and rail. The refinery is part of Russia's military-industrial complex and plays a direct role in supporting Moscow's war effort, the source said.

The Russian regional operational headquarters claimed that "drone debris" fell on the oil refinery.

The strike marks a renewed wave of Ukrainian attacks on Russian oil infrastructure, following a months-long pause since March. On July 1, Ukrainian drones struck the Saratovorgsintez oil refinery in Russia's Saratov Oblast.

Kyiv has targeted dozens of refineries, oil depots, and military-industrial sites since the start of Russia's full-scale invasion in 2022. Winter drone attacks forced at least four Russian refineries to temporarily shut down.

This is the second known strike on the Ilsky refinery. Ukrainian drones, operated by the Security Service (SBU) and Special Operations Forces (SSO), previously targeted the facility on Feb. 17, causing a fire.

Krasnodar Krai, a strategic region along Russia's Black Sea coast, has increasingly come under Ukrainian drone attacks as Kyiv extends the range of its strikes deep into Russian territory.

HUR publishes Russian military order, claims proof of Moscow increasing military footprint in Armenia

HUR first made the claim on July 5, saying Russia was increasing its forces at the Gyumri base to exert greater influence in the South Caucasus and “destabilize the global security situation.”

The Kyiv IndependentChris York

Ukrainian drones struck the Saratovorgsintez oil refinery in Russia's Saratov Oblast, causing damage to the facility, Ukraine's General Staff reported on July 1.

"An important facility has been hit," the General Staff said via its official Telegram channel.

The Saratovorgsintez refinery and chemical plant, owned by Russian energy giant Lukoil, is located nearly 1,500 kilometers (930 miles) from Ukraine's border in the city of Saratov. The city hosts multiple strategic military and industrial sites.

The refinery was targeted to "reduce the enemy's offensive capabilities," the General Staff wrote.

"The occupiers use the capacity of this refinery to supply fuel and lubricants to Russian military units involved in the armed aggression against Ukraine."

The attack was a joint operation carried out by Ukraine's military intelligence agency (HUR) and other military units, the General Staff said. A fire broke out at the site of the attack and damage to the refinery's technological installations has been confirmed. The full consequences of the strike are still being investigated.

The Kyiv Independent could not verify these claims.

The report is the latest in a series of announcements on July 1 about successful Ukrainian strikes on Russian targets. Earlier in the day, HUR released footage of Ukraine's UJ-26 drones, commonly known as Bober (Beavers), targeting high-value Russian air defenses and a fighter jet in occupied Crimea.

A source in the Security Service of Ukraine (SBU) told the Kyiv Independent that Ukrainian drones struck a major Russian military plant in the city of Izhevsk, over 1,300 kilometers (800 miles) from the front lines.

Ukraine also hit a Russian command post in occupied Donetsk Oblast, according to the General Staff.

Ukraine war latest: Ukrainian drones strike Russian plant 1,300km from border, SBU source says

Key developments on July 1: * ‘With surgical precision’ — Ukrainian drones strike Russian plant 1,300km away, SBU source says * Russian missile strike on Dnipropetrovsk Oblast kills brigade commander, injures 30 people, Zelensky says * Ukrainian forces hit Russian command post in occupied Donetsk Oblast, General Staff says * Zelensky signs ratification of

The Kyiv IndependentThe Kyiv Independent news desk