Rosneft-backed Nayara Energy sues Microsoft after it suspends services following EU sanctions on refiner

Indian Express

6 days ago

Russian oil major Rosneft-backed refiner Nayara Energy has moved the Delhi High Court against Microsoft after the latter stopped providing services to the company as it came under the European Union's sanctions. In a statement on Monday, Nayara Energy said that Microsoft is 'currently restricting Nayara Energy's access to its own data, proprietary tools, and products—despite these being acquired under fully paid-up licenses'.
'This decision, based solely on Microsoft's unilateral interpretation of recent European Union (EU) sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem. The company has filed a petition before the Honorable High Court of Delhi seeking an interim injunction and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure. These steps are aimed at preventing any potential disruption to Nayara's ability to meet its obligations to Indian consumers and stakeholders,' Nayara Energy said.
The EU on July 18 announced that it was sanctioning Nayara Energy, in which Russian oil giant Rosneft holds 49.13 per cent stake, as part of its tranche of actions in the latest bid to force the Kremlin's hand to end the war in Ukraine. The sanctions mean that Nayara Energy would not be able to export petroleum fuels and products to Europe, and potentially hit any of its dealings with European companies. It could also hit Rosneft's plan to exit Nayara as the EU sanctions could spook prospective investors.
Nayara Energy owns and operates a 20-million-tonnes-per-annum oil refinery in Gujarat's Vadinar, and has a network of around 6,800 fuel retail outlets. It accounts for around 8 per cent of India's total refining capacity and 7 per cent of the country's fuel retail network. Nayara Energy primarily caters to the domestic market through its own retail network, institutional sales, and partnerships with other oil marketing companies.
The company—formerly Essar Oil—was earlier part of the Essar group. It was renamed as Nayara Energy after a group of investors including Rosneft acquired it from the Essar group. Like Rosneft, Kesani Enterprises—a consortium led by Italy's Mareterra and Russia-based United Capital Partners (UCP)—hold 49.13 per cent stake in the company. While owned by a group of international investors—mainly from Russia—Nayara maintains that it is an Indian company governed by Indian law.
'While the sanctions originate exclusively from the EU, Microsoft—a US-headquartered corporation—has chosen to withdraw services from Nayara Energy without any legal requirement to do so under US or Indian law. This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability,' Nayara Energy said in its statement Monday.
'All of Nayara Energy's operations are fully compliant with Indian laws and regulations, and the company remains in regular engagement with Indian authorities to ensure transparency and accountability…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,' the refiner added.
Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More