Nayara Energy sues Microsoft Corp in Delhi High Court for halting services
The tech giant restricted access to data and tools after the European Union sanctions on the Indo-Russian firm
Nayara Energy (formerly Essar Oil Ltd), an Indo-Russian oil refining and marketing company, has sued US-headquartered Microsoft Corp in the Delhi High Court.
Early this month, the European Union (EU) imposed sanctions on Nayara as part of the new measures against Russia over its war with Ukraine. It resulted in the tech giant stalling its services to the Rosneft-backed energy industry company.
The firm stated, “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.”
Rosneft has a 49.13 percent stake in Nayara, which owns and operates a 20 million tonnes a year oil refinery at Vadinar in Gujarat, as well as over 6,750 petrol pumps.
An investment consortium SPV, Kesani Enterprises Company, holds another 49.13 percent 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).
Nayara held, “This decision, based solely on Microsoft’s unilateral interpretation of recent EU sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem.”
It sought an interim injunction from the court and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure. The company added, “These steps are aimed at preventing any potential disruption to Nayara’s ability to meet its obligations to Indian consumers and stakeholders.”
The company maintained that while the sanctions originated exclusively from the EU, Microsoft withdrew its services from Nayara without any legal requirement under the US or Indian laws.
The company explained, “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.”
A vital contributor to India’s energy security, Nayara accounts for 8 percent of the country’s total refining capacity and 7 percent of its retail petrol pump network.
The company’s statement further read, “Despite these external challenges that Nayara is currently facing, we remain fully committed to ensuring uninterrupted service and supply to India’s energy demands. Our company’s operations are fully compliant with Indian laws and regulations, and we remain in regular engagement with Indian authorities to ensure transparency and accountability.”
Catering primarily to the domestic market through India’s largest private fuel retail network, institutional sales and partnerships with other Oil Marketing Companies (OMCs), it also invests in petrochemicals and clean energy, creating thousands of direct and indirect employment opportunities across the country.