We present a numerical model of Black Sea circulation based on primitive equations with improved spatial resolution in the coastal zone. The model equations are formulated in a two-pole orthogonal coordinate system with arbitrary locations of the poles and a vertical σ coordinate. Increased horizontal resolution is gained by displacing the pole into the vicinity of the separated subdomain. The problem is solved over a grid with a variable step. The northern coordinate pole is displaced to the vicinity of Gelendzhik; the grid step varies from 150 m in the coastal zone to 4.6 km in the main basin. We simulated the fields of currents, sea level, temperature, and salinity under the given atmospheric forcing in 2007. The model is capable of reproducing the large-scale Black Sea circulation and submesoscale variations in the coastal currents.