Microsoft restores services to Nayara Energy after abrupt EU-linked block

Microsoft resumed digital services for Nayara Energy following EU sanctions-related disruption, after the company moved court over an abrupt suspension without notice

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Global software giant Microsoft on Wednesday said it had restored services to the Russia-backed oil exploration and marketing company Nayara Energy, roughly two days after Nayara alleged that Microsoft had abruptly stopped access to its own data and services, which were stored with the company.

 

“Microsoft is committed to supporting all its customers in India and worldwide, and has restored services for Nayara Energy. We are engaged in ongoing discussions with the European Union towards service continuity for the organisation,” a spokesperson for the company said in a statement.

 

Nayara Energy, which operates fuel retailing outlets in India, is largely owned by Russia’s Rosneft, which holds nearly 49 per cent stake in the company. Earlier this week, Nayara Energy had moved the Delhi High Court, alleging that the US-based tech firm had abruptly and unilaterally suspended essential services without any prior warning.

 

In its plea, Nayara sought an interim injunction and immediate restoration of services to protect its rights and ensure continued access to important digital systems. According to Nayara, Microsoft did not discuss or notify the company before cutting off services.

 

In its plea, Nayara had also stated that Microsoft’s decision to block access to the data and services for the OMC was based only on the 18 July sanctions announced by the EU against Russian companies, in response to Russia’s invasion of Ukraine.

 

On 18 July, the EU said that it had adopted a “package of economic and individual restrictive measures hitting hard on Russia’s energy, banking and military sectors, as well as trade with the EU, and ensuring accountability for Russia’s continued war of aggression against Ukraine”.

 

For OMCs such as Nayara Energy, the EU has imposed an import ban on refined petroleum products made from Russian crude oil and originating from any third country, except for Canada, Norway, Switzerland, the United Kingdom, and the United States. The move, the EU had then said, was aimed at “preventing Russia’s crude oil from reaching the EU market through the back door.”