EU-Sanctioned Nayara Energy Sues Microsoft over Suspended Services at Gujarat Refinery

Nayara Energy, partly owned by Russian oil giant Rosneft, announced on Monday that it has initiated legal action against Microsoft Corp. for suspending essential services after the European Union sanctioned its Vadinar refinery as part of measures to restrict Russian energy trade.

Microsoft is currently limiting Nayara Energy’s access to its data, proprietary tools, and products despite these being fully licensed and paid for, the company stated.

It stated that this decision, which is based only on Microsoft’s one-sided interpretation of recent EU sanctions, establishes a risky precedent for corporate overreach and causes significant worries about its effects on India’s energy industry.

Nayara has submitted a petition to the Delhi High Court for an interim injunction to restore services, aiming to protect its rights and guarantee ongoing access to vital digital infrastructure. These actions are intended to prevent disruptions that could affect Nayara’s ability to serve Indian consumers and stakeholders.

Although the sanctions are solely from the EU, Nayara noted that Microsoft, an American company, has chosen to withdraw services without any legal obligation under U.S. or Indian law.

The company also mentioned that Microsoft did not provide prior notice or consultation before halting services. Nayara criticized this as an extension of foreign laws into India and warned of potential consequences for the country’s energy sector.

Microsoft has not yet replied to the request for comment.

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Nayara operates one of India’s largest private refineries at Vadinar in Gujarat, with a capacity of around 20 million tonnes annually. It also maintains a nationwide fuel retail network. Rosneft owns a 49.13% stake in Nayara, with an investment consortium holding the same percentage.

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