Nayara Energy sues Microsoft over EU sanctions-linked service suspension

Business Standard

6 days ago

Nayara Energy Ltd, owned by Russian energy major Rosneft, has moved the Delhi High Court against American tech giant Microsoft Corp., alleging that the company unilaterally suspended critical digital services citing European Union (EU) sanctions — despite Nayara holding fully paid-up licences and not being subject to such restrictions under Indian or US law.
In its petition, Nayara — which operates India's largest single-location refinery in Vadinar, Gujarat — is seeking an interim injunction and restoration of services, arguing that Microsoft's move jeopardises its access to proprietary tools, data, and infrastructure essential to its operations.
Microsoft declined to comment.
In a statement, Nayara said that 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,' the statement 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,' the company said, adding that Nayara's mission, 'In India, for India,' drives its operations.
Nayara primarily caters to the domestic market through India's largest private fuel retail network, institutional sales, and partnerships with other oil marketing companies (OMCs). The company is also investing in petrochemicals and clean energy, creating thousands of direct and indirect employment opportunities across India.
'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,' it said.
The company reiterated that Microsoft's action was taken without prior notice, consultation, or legal mandate, and labelled the move a case of corporate overreach.