Ahmedabad: Nayara Energy, partly owned by Russian oil company Rosneft, on Monday said it has initiated legal proceedings against Microsoft Corp for suspending critical services after its refinery at Vadinar was sanctioned by the European Union as part of its latest measures aimed at curbing the trade in Russian energy.
Microsoft is currently restricting Nayara Energy’s access to the oil company’s own data, proprietary tools, and products — despite these being acquired under fully paid-up licenses, 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,” it said.
The company said it has filed a petition before the Delhi high court seeking an interim injunction and resumption of 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, according to the company.
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 US or Indian law, Nayara said.
{{/usCountry}}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 US or Indian law, Nayara said.
{{/usCountry}}The company said Microsoft did not give prior notice or allow any form of consultation before withdrawing the services. Nayara called this an extension of foreign laws into India and warned of its potential impact on the country’s energy sector.
Microsoft did not immediately respond to a request for comment.
Nayara operates one of India’s largest private refineries at Vadinar in Gujarat. The refinery has a capacity of about 20 million tonnes per year. Nayara also has a nationwide fuel retail network. Rosneft has a 49.13% stake in Nayara, with an investment consortium holding an identical stake.
Earlier this month, the European Union cited Nayara’s Vadinar refinery as part of the 18th package of sanctions against Russia over its war against Ukraine. The measures included asset freezes, shipping and insurance curbs, and a reduction in the price cap on Russian crude. Indian authorities have stated that they do not recognise unilateral sanctions.
Following the sanctions, oil traders and shipping firms have begun avoiding transactions involving Nayara. At least two tankers declined to lift cargo from Vadinar port, and one of Nayara’s tenders for naphtha exports closed without an award after the company tightened its payment terms, according to people familiar with the matter.