Nayara Energy sues Microsoft over Russia’s Rosneft-linked service suspension, cites ‘corporate overreach’

IT services giant Microsoft Corp has suspended services to Russian oil major Rosneft-backed Nayara Energy Ltd after the European Union’s (EU) sanctions on Moscow.

Following the suspension of Microsoft services, the Indian oil refinery company on Monday sued the US tech giant in the Delhi High Court.

“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.

“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 added.

Earlier this month, the EU imposed sanctions on Nayara as part of a new raft of measures against Russia over its war with Ukraine.

Rosneft owns a 49.13 per cent stake in Nayara Energy, formerly known as Essar Oil Ltd.

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.).

The Indian company owns and operates a 20 million tonnes a year oil refinery at Vadinar in Gujarat, as well as over 6,750 petrol pumps.

Interim injunction sought

Nayara, in its petition, has sought an interim injunction and resumption of Microsoft 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 further said that while the sanctions originate exclusively from the EU, Microsoft, a US-headquartered corporation, decided to withdraw services from Nayara Energy without any legal requirement to do so under the US or Indian laws.

“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.

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