Microsoft has restored its services to Indian refiner Nayara Energy, which was hit by EU sanctions earlier this month due to Russia’s oil giant Rosneft owing a large stake in the Indian company.
Two weeks ago, the EU adopted the 18th sanctions package against Russia, targeting a hundred more ‘shadow fleet’ tankers, energy trade, and traders and banks enabling it.
In a first move against customers of Russian oil, the EU sanctioned Russian and international companies managing shadow fleet vessels, traders of Russian crude oil, and a major customer of the shadow fleet – the Nayara Energy refinery in India with Rosneft as its main shareholder.
Following the sanctions, Microsoft suspended its services to Nayara, which took the U.S. tech giant to an Indian high court, as employees were unable to access email and other tech services necessary for the day-to-day-operations of the refiner.
Ahead of a hearing planned for Wednesday, Microsoft restored its services to the company and the “matter has been resolved,” a lawyer for Nayara told the judge, Reuters reports.
Microsoft confirmed the restoration of the services, saying in a statement to Reuters that “We are engaged in ongoing discussions with the European Union towards service continuity for the organization.”
The episode with Microsoft highlights the fallout from the EU sanctions for the Rosneft-linked Indian refiner, which has seen its operations upended in recent days.
Nayara Energy is already experiencing disruption to its fuel exports. The Indian refiner has changed the payment terms to sell a spot naphtha cargo seeking advance payment or a letter of credit from the potential buyer for loading of the cargo in mid-August.
In addition, several tankers chartered by major Western and Chinese oil firms, including BP and PetroChina, have left the Indian port of Vadinar without loading diesel at Nayara’s terminals, while bookings for August-loading cargoes have also been canceled.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
