Former Georgian Economy Minister Leads SOCAR's Italian Acquisition Following EU Sanctions Scrutiny on Kulevi Port

Georgia's former Economy Minister Levan Davitashvili has been appointed Chief Executive Officer of Italiana Petroli (IP), an Italian petroleum and energy company, following the completion of SOCAR's acquisition of 99.82% of IP's share capital. The appointment, announced on May 13, 2026, places Davitashvili at the helm of one of the largest energy sector transactions involving a Georgian-connected entity in European markets in recent years.

The SOCAR-Italiana Petroli Transaction

The State Oil Company of the Azerbaijan Republic (SOCAR) completed its acquisition of Italiana Petroli in May 2026, making Davitashvili responsible for overseeing the Italian company's integration into SOCAR's broader group structure. IP operates in Italy's petroleum and energy sector, and the acquisition represents a significant expansion of SOCAR's downstream presence in European markets.

According to Italiana Petroli's press release, Davitashvili will focus on "ensuring operational continuity, preserving and further strengthening its position in the national energy market, and overseeing the company's integration within the broader SOCAR Group." The appointment draws on Davitashvili's 25 years of experience across senior public and private sector leadership positions, including his tenure as Georgia's Deputy Prime Minister and Economy Minister from 2022 to June 2025.

EU Sanctions Scrutiny: The Kulevi Port Connection

The appointment comes against a backdrop of EU sanctions-related scrutiny involving facilities connected to SOCAR's broader network. In recent months, the Kulevi Oil Refinery — operated by Black Sea Petroleum, a company Davitashvili chaired — came under international attention over its alleged role in facilitating Russian oil exports. Kulevi port, owned and operated by SOCAR, was initially considered for inclusion in the European Union's 20th sanctions package against Russia.

The EU ultimately decided not to include Kulevi port in the sanctions package, citing "positive commitments" by Georgian authorities and SOCAR as the terminal's operator. This decision reflects the EU's ongoing balancing act between maintaining pressure on Russia and preserving engagement with countries in the South Caucasus region. For investors and businesses operating in Georgia's energy sector, the Kulevi episode illustrates how EU sanctions policy can directly affect Georgian-connected commercial operations — even when the target entity is not itself listed.

Anti-Corruption Investigation: The February 2026 Questioning

In February 2026, Davitashvili was questioned by the Anti-Corruption Agency of the State Security Service of Georgia (SSSG) as part of what authorities described as an ongoing investigation into a contract signed with one of the major oil companies. Davitashvili initially said the discussions concerned risks related to Georgia facilitating gas supplies to Europe. The agency later issued a correction, clarifying that the questioning concerned risks related to Georgia's own gas supplies and contract terms affecting the country — not the EU's gas supplies.

The incident underscores the growing attention Georgian authorities are paying to the energy sector through anti-corruption enforcement. For foreign investors considering partnerships or acquisitions involving Georgian companies — particularly in the energy, infrastructure, or natural resource sectors — this case signals that contractual arrangements with major oil and gas counterparties may attract scrutiny from law enforcement agencies. Due diligence on the integrity of commercial agreements and compliance with Georgian anti-corruption law should be treated as essential preconditions for any significant transaction.

Implications for Foreign Investors and Businesses

The Davitashvili appointment illustrates several dynamics relevant to businesses operating in or engaging with Georgia:

State-owned enterprise transactions: SOCAR's acquisition of a European energy company and subsequent appointment of a former Georgian government minister raises questions about governance standards in state-connected transactions. Investors in similar contexts should conduct thorough due diligence on ownership structures, beneficial interests, and any prior government roles of key appointees.
EU sanctions exposure: The Kulevi port episode demonstrates that facilities linked to Georgian-connected entities can become entangled in EU sanctions deliberations. Businesses should monitor evolving EU sanctions lists and ensure that any activities involving Georgian-connected supply chains do not inadvertently trigger restrictive measures.
Anti-corruption enforcement in the energy sector: Georgian authorities' investigation into Davitashvili suggests a more assertive posture by the SSSG's Anti-Corruption Agency in reviewing energy sector contracts. Companies operating in this space should ensure their agreements are robust, transparent, and defensible under scrutiny.

Key Takeaways

Levan Davitashvili, Georgia's former economy minister, is now CEO of Italiana Petroli following SOCAR's acquisition of the Italian energy company
The Kulevi port, operated by SOCAR subsidiary Black Sea Petroleum, was considered for the EU's 20th sanctions package against Russia but was excluded after "positive commitments" from Georgian authorities
Davitashvili was questioned by Georgia's Anti-Corruption Agency in February 2026 regarding an oil sector contract — an episode highlighting growing enforcement attention on the energy sector
For investors, the case underlines the importance of due diligence on state-connected transactions and awareness of EU sanctions exposure in the Georgian energy sector

Considering a transaction with a Georgian state-connected counterparty? We do ownership and beneficial-interest due diligence. See our corporate service page.