Georgia’s Oil Trade Surges Amid Sanctions, Raising Questions Over Russian Crude Flows to Europe

Since the start of the war in Ukraine in 2022, Georgia’s oil exports to Europe have surged 15-fold, while Russia remains the country’s largest supplier of crude via both maritime and rail routes. However, the Russian oil imported into Georgia is not recorded in the country’s official statistics, according to an investigative report by Georgian media outlet iFact, published on January 22.

The report, titled “Invisible Cargo: The Route of Sanctioned Russian Oil to Europe,” suggests that Russian crude is making its way into European markets through Georgia. Among its key findings, iFact highlights that between 2023 and 2024, Spain imported 99,000 tonnes of crude oil from Georgia worth €49 million, despite Georgia not producing such volumes domestically. While these exports appear in Spanish trade records, they are absent from Georgia’s National Statistics Office database.

The investigation further reveals that, according to Georgian authorities, no crude oil was exported from Georgia to Spain in 2023. However, international trade databases—including volza.com and the UN’s Comtrade platform—show that crude oil shipments from Georgia to Spain were valued at $25 million in 2023 alone.

When contacted for clarification, Georgia’s National Statistics Office suggested that the discrepancy could stem from "triangular trade," in which goods are resold without physically passing through Georgia. In such cases, a Russian company might sell oil to a Georgian intermediary, which then sells it to an Italian firm, with the shipment moving directly from Russia to Italy. This would explain why the transaction does not appear in Georgia’s trade statistics.

Georgia’s tax authorities did not respond to iFact’s queries on the matter.

According to the report, Georgia’s officially recorded oil reserves stood at 35 million barrels in 2016 and have remained largely unchanged in recent years. Yet, the country’s crude oil and petroleum product exports have skyrocketed. Since the onset of the Ukraine war, Georgia has increased its oil exports to the EU by 1,465%, while global exports have risen by approximately 440%, according to official trade data.

The findings raise concerns over whether Georgia is facilitating the re-export of Russian crude to circumvent Western sanctions. While European countries have imposed extensive restrictions on Russian energy exports, loopholes in global trade routes continue to enable flows of Russian crude and refined products into European markets. The report’s revelations are likely to prompt further scrutiny of Georgia’s role in the evolving energy trade dynamics.