The European Union is weighing sanctions against the Kulevi oil terminal in Georgia as part of its 20th sanctions package against Russia. The move aims to crack down on the evasion of existing restrictions on Russian oil.

The European Commission claims the port has been receiving Russian oil via “shadow fleet” vessels using high-risk and irregular shipping methods.

If approved, the sanctions would effectively isolate the port from the global financial and insurance systems, making it “unattractive” for international shipping and barring EU entities from doing business there.

While the terminal is owned by SOCAR (Azerbaijan’s state oil company), its operations have recently been linked to a new refinery managed by a Georgian firm with alleged business ties to the family of a high-ranking Russian GRU official.

Georgian Prime Minister Irakli Kobakhidze has denied any wrongdoing, stating that the government is ready to provide evidence to the EU to prove they are not violating sanctions policies.