Georgia shifts to Azerbaijani diesel, phasing out Russian supplies

Georgia may soon fully replace diesel fuel imports from Russia with fuel sourced from Azerbaijan, according to Vakhtang Iobashvili, Chairman of the Georgian Union of Oil Product Importers, in an interview with BusinessPress.

Iobashvili noted that Azerbaijani diesel meets Euro-5 standards and is already exported to Europe, with demand on the Georgian market rising rapidly.

Data from Geostat shows that in October 2025, Georgia imported 29,734 tonnes of diesel and other fuels from Azerbaijan, valued at $20.035 million — an increase of 352.3 times compared to the same period in 2024, when only 84.4 tonnes were imported. The surge is primarily attributed to diesel fuel.

Iobashvili added that demand for Azerbaijani diesel has grown by 40% and is expected to continue rising.

One of the key advantages of importing from Azerbaijan is both the product quality and shorter logistics routes. The Baku–Tbilisi route is shorter than the Russian alternative, reducing transportation costs. Georgian laboratories have confirmed that the diesel meets the high Euro-5 standard.

“This will positively affect prices. Russia is a large country, and long distances increase logistics costs. Azerbaijani logistics services are more accessible,” Iobashvili said.

Regarding competitiveness, Iobashvili explained that since fuel prices are based on international Platts indexes, significant differences between countries are not expected. However, lower logistics costs could reduce the final fuel price.

“Logistics costs are low, but it still depends on Platts prices and railway tariffs, which change every year,” he added.

By Vugar Khalilov