Use gitlab-shell to move repos. Requires gitlab-shell v1.1.0

app/services/project_transfer_service.rb

@@ -3,29 +3,27 @@
 # Used for transfer project to another namespace
 #
 class ProjectTransferService
+  include Gitolited
+
   attr_accessor :project
 
   def transfer(project, new_namespace)
     Project.transaction do
-      old_namespace = project.namespace
-      project.namespace = new_namespace
-
-      old_dir = old_namespace.try(:path) || ''
-      new_dir = new_namespace.try(:path) || ''
-
-      old_repo = if old_dir.present?
-                   File.join(old_dir, project.path)
-                 else
-                   project.path
-                 end
+      old_path = project.path_with_namespace
+      new_path = File.join(new_namespace.try(:path) || '', project.path)
 
       if Project.where(path: project.path, namespace_id: new_namespace.try(:id)).present?
         raise TransferError.new("Project with same path in target namespace already exists")
       end
 
-      Gitlab::ProjectMover.new(project, old_dir, new_dir).execute
-
+      project.namespace = new_namespace
       project.save!
+
+      unless gitlab_shell.mv_repository(old_path, new_path)
+        raise TransferError.new('Cannot move project')
+      end
+
+      true
     end
   rescue Gitlab::ProjectMover::ProjectMoveError => ex
     raise Project::TransferError.new(ex.message)