EU imposes covert sanctions on Azerbaijani petrol refinery, stealthily processing Russian fuel
The European Union has extended sanctions against Russia to include the Azerbaijani state-owned STAR Refinery in Turkey, following allegations that the facility has been processing large amounts of Russian oil for European buyers.
The current owner of the STAR Refinery is the State Oil Company of Azerbaijan Republic (SOCAR), which acquired the refinery's parent company, Petkim, in 2008 for over 2 billion USD. Since then, the refinery has been a significant importer of Russian oil, with over 90% of its crude oil coming from Russia as early as 2024.
Jon Noronha-Gant, a senior fossil fuels investigator from Global Witness, has stated that EU purchases of Russian oil products have funded the war in Ukraine. He praised the EU for clamping down and stopping purchases from refineries like STAR that have bought so much Russian oil. Noronha-Gant added that the EU has all the necessary tools to impose the sanctions efficiently.
The ban on the import of refined products made from Russian crude oil if processed in third countries is an anti-circumvention measure. The EU foreign affairs spokesperson, Anitta Hipper, confirmed that STAR, jointly owned by the Azerbaijani government and its state oil company SOCAR, is covered by the package.
In July 2025, the STAR Refinery was subject to a ban for processing Russian crude oil under the EU's 18th sanctions package. By this time, Armenian outlet Hetq had already revealed that two more Azerbaijani vessels - Shusha and Karabakh - had also been sanctioned. The Zangezur tanker, which had been rebuilt as an Aframax carrier and regularly transported crude from Russia's Primorsk port to Turkey's Nemrut terminal, was blacklisted by the UK and added to the EU's list as part of Russia's 'shadow fleet'.
The goal of the EU is to cut off Russian oil revenues by banning the import of refined products made from Russian crude oil. Noronha-Gant asserted that the EU has the data and the ability to enforce its sanctions. The clarification may spell the end of STAR's role in handling Russian oil for European buyers.
Since Russia's full-scale invasion of Ukraine in 2022, Azerbaijan has often been accused of 'rebranding' Russian fossil fuels through its infrastructure. The EU's decision to extend sanctions against the STAR Refinery is a significant step in its ongoing efforts to curb the flow of Russian oil into the European market.
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