Nayara Sues Microsoft Over EU Sanctions-Linked Service Cut

31 Jul 2025 CW Team

In a statement released on Monday, Nayara said Microsoft had blocked the company’s access to its own data, proprietary tools, and software—despite these being obtained under fully paid-up licences. The move, the company claimed, stems from Microsoft’s unilateral interpretation of EU sanctions, without any legal obligation under either Indian or US law.

“This decision sets a dangerous precedent for corporate overreach and has worrying implications for India’s energy security,” Nayara said.

The company has filed a petition in the Delhi High Court seeking interim relief and the immediate resumption of services to protect its rights and avoid disruption to energy supply obligations across India.

Nayara further alleged that Microsoft withdrew services without any prior notice or consultation, warning that such extensions of foreign laws into India could adversely affect the country’s strategic energy interests.

Microsoft has yet to issue a public response.

Nayara Energy operates one of India’s largest private sector refineries at Vadinar in Gujarat, with a refining capacity of 20 million tonnes per year and a national retail fuel network. Rosneft holds a 49.13 per cent stake in the company, matched by an investment consortium.

Earlier this month, the EU named Nayara’s Vadinar refinery in its 18th sanctions package against Russia over the war in Ukraine. The sanctions include asset freezes, restrictions on shipping and insurance, and a reduced price cap on Russian crude. India, however, does not recognise such unilateral sanctions.

Since the listing, some shipping firms and oil traders have started distancing themselves from Nayara, with at least two tankers reportedly refusing to lift cargo from the Vadinar port. One of Nayara’s recent tenders for naphtha exports reportedly closed without result after changes to payment terms.

Nayara Energy, partly owned by Russian oil major Rosneft, has initiated legal proceedings against Microsoft Corporation for suspending access to critical digital services after its Vadinar refinery was listed in the European Union’s latest sanctions targeting Russian energy trade.In a statement released on Monday, Nayara said Microsoft had blocked the company’s access to its own data, proprietary tools, and software—despite these being obtained under fully paid-up licences. The move, the company claimed, stems from Microsoft’s unilateral interpretation of EU sanctions, without any legal obligation under either Indian or US law.“This decision sets a dangerous precedent for corporate overreach and has worrying implications for India’s energy security,” Nayara said.The company has filed a petition in the Delhi High Court seeking interim relief and the immediate resumption of services to protect its rights and avoid disruption to energy supply obligations across India.Nayara further alleged that Microsoft withdrew services without any prior notice or consultation, warning that such extensions of foreign laws into India could adversely affect the country’s strategic energy interests.Microsoft has yet to issue a public response.Nayara Energy operates one of India’s largest private sector refineries at Vadinar in Gujarat, with a refining capacity of 20 million tonnes per year and a national retail fuel network. Rosneft holds a 49.13 per cent stake in the company, matched by an investment consortium.Earlier this month, the EU named Nayara’s Vadinar refinery in its 18th sanctions package against Russia over the war in Ukraine. The sanctions include asset freezes, restrictions on shipping and insurance, and a reduced price cap on Russian crude. India, however, does not recognise such unilateral sanctions.Since the listing, some shipping firms and oil traders have started distancing themselves from Nayara, with at least two tankers reportedly refusing to lift cargo from the Vadinar port. One of Nayara’s recent tenders for naphtha exports reportedly closed without result after changes to payment terms.

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