Tatyana Gracheva

A document seen by Reuters reports that the EU has proposed sanctioning ports in Georgia and Indonesia over their role in handling Russian oil.
Moreover, a proposal to broaden the European Union’s sanctions regime against Russia has been put forward. As a result, ports in Georgia and Indonesia that facilitate the handling of Russian oil became targets. 
In case of adoption, it will be the first case of blocking ports located in third countries.
Effectively, the proposal will add the Georgian port of Kulevi and Indonesia’s Karimun terminal to the EU’s sanctions list, prohibiting EU-based companies and individuals from engaging in any commercial dealings with either facility.
In general, these measures are part of the EU’s 20th package of sanctions against Russia.
The European External Action Service (EEAS) and the European Commission jointly prepared the package and formally presented it to EU member states on Monday.
As European Commission President Ursula von der Leyen said on Friday, the package would introduce sweeping sectoral restrictions and replace the Group of Seven’s price cap on Russian crude with a comprehensive ban on maritime services linked to Russian oil.
As Reuters reported earlier, Russia began shipping oil to Georgia’s Kulevi refinery shortly after the facility opened in October 2025.
According to LSEG and a trader, the outlet reported that the tanker Kayseri transported 105,340 metric tons of Siberian Light crude from Russia’s Black Sea port of Novorossiisk to the Kulevi Oil Terminal on Oct. 6.
Meanwhile, Georgia’s reliance on Russian energy imports remains heavy. Nearly $520 million worth of petroleum and petroleum oils were imported by the country from Russia in 2024, what equaled to roughly 40% of its total imports in that category.
Volumes rising sharply from late 2024 onward made Indonesia’s Karimun terminal, situated within a free trade zone near Singapore, a key transit point for Russian oil products.
According to ship-tracking data, since October of that year, the terminal has received Russian oil products every month. Also, onward shipments were sent to Malaysia, Singapore, and China.
In total, Karimun accepted about 217,000 metric tons (equivalent to roughly 1.6 million barrels) of Russian diesel in 2025.
NH Logistics GEO has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Georgia and Eurasia, supporting many clients with their import/export shipments.

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Tbilisi’s initiative aims at regional integration and evolving trade routes, despite investment and regional security risks.
The main goal of Georgia is to become a transit intermediary between Armenia and Azerbaijan and wider Eurasian markets.
As Georgia’s Prime Minister Irakli Kobakhidze informed, the country has launched projects to create joint customs checkpoints with Armenia and Azerbaijan with support from the Asian Development Bank.
He also said that a novel computerized transit system has been successfully implemented, according to European Union standards.
Such infrastructure initiatives as the East–West Highway, the Baku–Tbilisi–Kars railway, the Anaklia deep-sea port, dry ports, and railway modernization are among projects aimed at enhancing transportation connections between Central Asia, the Black Sea region, and European markets.
Georgia also pursues geopolitical signaling purposes, such as attracting investment from China and the West through the incorporation of neighboring countries into its customs and transit infrastructure. There are free trade agreements between Georgia wand China, Turkey, and the EU. They make the country engaged in a comprehensive economic strategy designed to enhance its connections with China, maintain its partnership with the EU, and preserve its ties with the United States. South Caucasus transit routes attract more attention due to Beijing’s Belt and Road Initiative.
Unfortunately, unresolved Armenia–Azerbaijan tension is a constraint able to disrupt corridor projects.
Nevertheless, there is a significant progress in establishing and operationalizing joint Georgia–Armenia and Georgia–Azerbaijan customs checkpoints, including technical and regulatory implementation milestones.
Other beneficial changes are developments in the Armenia–Azerbaijan peace process that affect cross-border trade, transit security, and corridor reliability.
Also, the Asian Development Bank and other external financiers gave commitments and disbursements to Georgian transport and customs infrastructure projects.
Moreover, there are shifts in EU and US diplomatic and economic engagement with Georgia linked to domestic governance and regulatory policies.
Georgia’s joint initiatives in customs integration and infrastructure development will continue to solidify its transit capabilities and encourage foreign investment. The continued effectiveness of these initiatives with Western nations will be shaped by the Armenia–Azerbaijan peace process, Russia’s regional actions, and Georgia’s partnerships. Nevertheless, instability of the situation in the region or escalation among external powers are the factors hindering Georgia’s effort to act as a stabilizing logistics hub and complicate its multi-vector economic strategy.
NH Logistics GEO has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Georgia and Eurasia, supporting many clients with their import/export shipments.

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