Nayara Energy, India’s second-largest private oil refiner, has filed a lawsuit against Microsoft, accusing the U.S. tech giant of abruptly cutting off access to essential digital services and proprietary tools. The move comes in response to Microsoft’s actions tied to recent European Union sanctions targeting the Indian refiner’s Russian ties.
In a statement released Monday, Nayara said Microsoft had “unilaterally and without notice” suspended critical services—including access to data and licensed software—based on its interpretation of new EU sanctions. The company, partly owned by Russian oil major Rosneft, condemned the decision and announced it had taken legal action in the Delhi High Court.
“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 statement read. “This sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem.”
Earlier this month, the European Union imposed sanctions on Nayara’s Vadinar refinery—marking the first EU sanctions levied against an Indian refiner. The measures are part of broader restrictions targeting the use and trade of refined products derived from Russian crude oil.
Rosneft, which holds a 49% stake in Nayara, slammed the EU decision as “unjustified and illegal.”
Nayara argued that Microsoft’s actions exceed legal boundaries, pointing out that the company operates under U.S. jurisdiction, not EU law.
“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,” the company asserted.
The refiner added that the move “was taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance.”
In its legal filing, Nayara has requested an interim injunction and the immediate restoration of Microsoft services to safeguard its operations and ensure continuity in serving Indian consumers.
“These steps are aimed at preventing any potential disruption to Nayara’s ability to meet its obligations to Indian consumers and stakeholders,” the company said.
The case raises broader questions about the influence of extraterritorial sanctions and the role of multinational corporations in enforcing foreign policies in non-aligned jurisdictions like India.
