Indian shipowners urge Nayara to end vessel charters after EU sanctions

Indian firms seek charter exits with Nayara amid EU sanctions; company files Delhi HC plea against Microsoft for suspending digital access citing compliance

At least three India-based shipowners have asked Nayara Energy to terminate their ongoing vessel charter agreements following recent European Union (EU) sanctions against the refiner, according to a Reuters report.

 

The companies are said to be seeking a way out of their contracts amid rising concerns over possible exposure to regulatory risk. Nayara Energy, which is significantly owned by Russian entities including Rosneft, has come under renewed scrutiny after being targeted by EU sanctions earlier this month for its ties to Russia’s oil trade.

 

The shipowners’ move reflects growing caution in the Indian shipping industry over associating with sanctioned entities. It is important to mention that there is no direct legal obligation under Indian law to comply with European sanctions.

 

Legal battle with Microsoft

The development comes after Nayara filed a petition in the Delhi High Court against Microsoft, alleging that the US-based technology firm had abruptly cut off access to its licensed digital services without prior warning or discussion.

 

“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. Nayara described the action as unilateral and taken “under the guise of compliance,” arguing that Microsoft has no obligation under US or Indian law to enforce EU sanctions.

 

According to Reuters, the software giant suspended Nayara’s access to essential communication and collaboration platforms --including email and Microsoft Teams -- last Tuesday (July 22). The disruption has reportedly affected internal operations and communication across the company.

 

Nayara’s petition seeks an interim injunction and immediate restoration of services. “This action has been taken unilaterally, without prior notice, consultation or recourse,” the company said, adding that it was a direct violation of its rights as a paying customer.

 

“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.

 

Nayara said the abrupt suspension—affecting tools such as email and Teams—was taken without consultation and described the action as being carried out “under the guise of compliance.” The company is now seeking a court injunction to restore access.

Emphasis on growth

Despite mounting challenges, Nayara has underscored its strategic importance to India’s fuel and energy sector. The company contributes approximately 8 per cent of the country’s total refining capacity and operates about 7 per cent of India’s retail fuel outlets. It is also in the process of developing nearly 8 per cent of the nation’s polypropylene production capacity.

 

In a statement, Nayara reiterated its commitment to ensuring uninterrupted fuel supply across the country. Guided by the philosophy “In India, for India,” the company’s focus remains largely on domestic operations, including sales through retail stations, supply to institutional clients, and collaborations with other oil marketing firms.

 

Nayara is also expanding its footprint in petrochemicals and clean energy, supporting employment generation and long-term industrial growth.

 

The company added that it fully adheres to Indian laws and regulations and continues to engage with relevant authorities to uphold transparency and accountability.