Microsoft suspends services to Nayara, co sues firm in Delhi High Court

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3 days ago

The European Union earlier this month imposed sanctions on Nayara as part of a new raft of measures against Russia over its war with Ukraine.
'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.
New Delhi, Jul 28 (PTI) Microsoft Corp has stopped providing services to Russian oil giant Rosneft-backed Nayara Energy following European Union sanctions, prompting the Indian refinery to sue the tech giant in the Delhi High Court.
Rosneft owns a 49.13 per cent stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonnes a year oil refinery at Vadinar in Gujarat, as well as over 6,750 petrol pumps.
An investment consortium SPV, Kesani Enterprises Company, holds another 49.13 per cent stake in Nayara. Kesani is owned by Russia's United Capital Partners (UCP) and Hara Capital Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding S.p.A.).
'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,' Nayara said.
The firm said it has filed a petition before the 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,' it said.
The firm went on to state 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,' it said.
Nayara Energy said it is a vital contributor to India's energy security, accounting for approximately 8 per cent of the country's total refining capacity, 7 per cent of its retail petrol pump network.
'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 statement said. '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.
Nayara said it 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. PTI ANZ ANZ MR
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