Georgian authorities have detained three Kazakh nationals after accusing the managers of Batumi Oil Terminal of illegally disposing of more than USD 5 million worth of crude oil by bypassing customs procedures.
Batumi Oil Terminal, located in Georgia’s coastal city, has been owned and operated by KazTransOil, a subsidiary of KazMunayGas, a state-owned oil and gas company of Kazakhstan, since its acquisition in 2008.
The Finance Ministry’s Investigation Service said on December 4 that the managers of LLC Batumi Oil Terminal “illegally disposed of more than 10,000 tons of uncustomed crude oil stored in the terminal’s reservoirs, valued at over 15,000,000 GEL, bypassing and concealing it from customs procedures.” To cover up the scheme, the suspects allegedly “placed unusable, contaminated oil waste into the customs terminal’s reservoirs.”
Authorities did not disclose the names or roles of the detainees. The investigation is ongoing under Article 214 (2) and (6) of Georgia’s Criminal Code, which covers the breaches of procedures for moving goods across the customs border and carries a penalty of 11 to 15 years in prison.
“The investigation continues intensively in the case to identify additional members of the criminal group, determine the exact amount of damage caused to the state budget, and uncover facts of the subsequent disposal of the smuggled oil,” the statement added.
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