Indian Oil Refiner Sues Microsoft Over Service Suspension Move
“Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services,” the company said. “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.”
The firm described Microsoft’s action as “based solely on Microsoft’s unilateral interpretation of recent European Union sanctions” and warned it creates a “dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem.”
Earlier this month, the EU imposed sanctions on the Vadinar refinery, operated by Nayara—a joint Indo-Russian venture in which Rosneft holds a 49% stake. The sanctions, targeting the oil sector, include a ban on importing refined petroleum products derived from Russian crude and mark the first restrictions placed on an Indian refiner. Rosneft condemned the EU’s move as “unjustified and illegal.”
On Monday, Nayara challenged Microsoft’s legal justification for suspending services. The company stated, “While the sanctions originate exclusively from the EU, Microsoft – a U.S.-headquartered corporation – has chosen to withdraw services from Nayara Energy without any legal requirement to do so under U.S. or Indian law.” It added, “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.”
In its petition filed at a Delhi court, Nayara sought an interim injunction demanding the immediate restoration of Microsoft’s services to protect its rights and maintain uninterrupted access to critical digital infrastructure. The company emphasized, “These steps are aimed at preventing any potential disruption to Nayara’s ability to meet its obligations to Indian consumers and stakeholders.”
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