European sanctions covertly encompass an Azerbaijani oil refinery for processing Russian fuel
The European Union (EU) has extended its sanctions against Russia to include the state-owned STAR Refinery in Turkey, following concerns over the refinery's handling of Russian crude oil.
According to reports, the STAR Refinery was subject to a ban for processing Russian crude oil under the EU's 18th sanctions package, adopted in July 2025. This ban was prompted by the refinery's significant reliance on Russian oil, with over 90% of its crude oil imports coming from Russia in early 2024.
In the first quarter of 2024, the STAR refinery imported an estimated $1.2 billion worth of Russian oil, a stark increase from the $500 million it imported two years prior. The refinery's shift of loans from US banks to Russian creditors in late 2023 and its refitting of tankers to carry Russian crude has been a subject of controversy.
Two Azerbaijani vessels, the Shusha and Karabakh, were also sanctioned due to concerns over sanctions compliance and geopolitical tensions. These vessels had been transporting crude oil to the STAR refinery, causing supply disruptions and potentially leading to higher refining costs and supply chain difficulties for European trade partners.
Jon Noronha-Gant, a senior fossil fuels investigator from Global Witness, stated that EU purchases of Russian oil products have funded the war in Ukraine. He further added that the EU can trace and enforce sanctions on oil products from refineries using Russian oil.
The EU's 18th sanctions package bans the import of refined products made from Russian crude if processed in third countries. However, the legislation did not explicitly list refineries. When contacted, 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.
Since Russia's full-scale invasion of Ukraine in 2022, Azerbaijan has often been accused of 'rebranding' Russian fossil fuels through its infrastructure. The Zangezur tanker, one of the three vessels regularly transporting 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 clarification may spell the end of STAR's role in handling Russian oil for European buyers. Noronha-Gant added that the EU has all necessary tools to impose the sanctions efficiently. The EU's actions aim to cut off Russian oil revenues and prevent Russian crude oil from reaching the EU market in any form.
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