India Is Building a Sanctions-Proof Supply Chain for Russian Oil

(Bloomberg) —

Oil refiners in India — eager to keep importing cheap crude from Russia — are working with merchants, shippers and other middlemen to rebuild supply chains as tougher US sanctions come into effect.

Speaking on the sidelines of India’s flagship energy gathering in Delhi, executives said the existing networks were being reconfigured with selling entities, tankers and insurance providers that are not on Washington’s blacklist. Some are existing outfits that have not been impacted by the punitive measures, while others are newly created, replacing those that are now off-limits, they said.

The executives, all directly involved in the trade, asked not to be named as they are not allowed to speak publicly.

Since restrictions were first imposed, India’s heavyweight buyers, including Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, Mangalore Refinery & Petrochemicals Ltd and Reliance Industries Ltd., have splurged on discounted Russian crude. Purchases went from a negligible portion of total imports to roughly a third. All that changed in January, however, when Washington rolled out a fre…