Nayara Energy, an Indian oil refiner with ties to Russian energy giant Rosneft, has initiated legal proceedings against Microsoft in the Delhi High Court, after Microsoft abruptly ceased providing critical services to Nayara, citing recent European Union (EU) sanctions.
“Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services. Microsoft is currently restricting Nayara Energy’s access to its own data, proprietary tools, and products – despite these being acquired under fully paid-up licences,” the company said in a statement.
Earlier this month, the European Union imposed sanctions on Nayara Energy as part of its 18th package of measures against Russia in response to the ongoing conflict in Ukraine. The 18th package seeks to cripple Russia’s economy and its ability to finance war. The package includes additional economic measures, export bans and other measures to counteract circumvention of sanctions and third-country support to Russia.
Nayara has been targeted due to Rosneft’s 49.13 per cent stake in the company. The Vadinar refinery in Gujarat, operated by Nayara, has a capacity of 20 million tonnes per year and plays a crucial role in India’s energy landscape, accounting for approximately 8 per cent of the country’s total refining capacity and about 7 per cent of its retail petrol pump network, with over 6,750 pumps.
Nayara Energy noted that while the sanctions originate exclusively from the EU, Microsoft, a US-headquartered corporation, has opted to withdraw services without any legal obligation to do so under the US or Indian law.
The petition filed in the Delhi High Court seeks an interim injunction and the immediate resumption of services. Nayara stated that these legal steps are aimed at safeguarding its rights and ensuring continued access to essential digital infrastructure to prevent any potential disruption to Nayara’s ability to meet its obligations to Indian consumers and stakeholders.
Nayara Energy said, “Despite these external challenges that Nayara Energy is currently facing, we remain fully committed to ensuring uninterrupted service and supply to India’s energy demands.”
Beyond its refining and retail operations, Nayara Energy also serves the domestic market through institutional sales and partnerships with other Oil Marketing Companies (OMCs).
