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Microsoft restores services to Nayara Energy after EU sanctions dispute

Microsoft has resumed services to Nayara Energy after a brief suspension linked to EU sanctions; the company had scaled down refinery operations and moved court seeking service restoration

Microsoft had suspended services after the EU introduced new sanctions on July 18 targeting Russia’s energy sector. (Photo/ Reuters)

Rimjhim Singh New Delhi

2 min read Last Updated : Jul 30 2025 | 1:14 PM IST

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Microsoft has resumed its services to Nayara Energy, a Russian-linked Indian oil refining company, after briefly cutting them off due to fresh European Union sanctions, news agency Reuters reported. The update was shared in a New Delhi court by Nayara’s lawyer, who confirmed the tech giant had restored access following a legal appeal by the company.

Microsoft had suspended services after the EU introduced new sanctions on July 18 targeting Russia’s energy sector. These measures also impacted Nayara, which is partly owned by Russian oil major Rosneft. The service cut caused major disruptions at Nayara’s Vadinar refinery in Gujarat, which processes 400,000 barrels of oil per day.

Due to limited fuel storage and pressure from shipping partners, Nayara was forced to scale down its operations.

ALSO READ: Nayara taps Indian IT firm Rediff.com after Microsoft suspends service

Nayara regains digital access

Following the disruption, Nayara approached a New Delhi court seeking an order to restore Microsoft’s services. The company argued that its staff had lost access to official emails and important company data needed for daily work.

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On Wednesday, Nayara’s lawyer informed the court that “the matter has been resolved” and Microsoft had restored services.

In a statement to Reuters, Microsoft said it had resumed services for Nayara Energy. “We are engaged in ongoing discussions with the European Union towards service continuity for the organisation,” it added.

Who owns Nayara Energy?

Rosneft owns 49.13 per cent of Nayara, while another 49.13 per cent is held by Kesani Enterprises Co Ltd, a consortium led by Italy’s Mareterra Group and Russian investment firm United Capital Partners.

Nayara Energy runs about 6,600 fuel stations across India and operates the country’s third-largest oil refinery at the port of Vadinar in Gujarat.

[With agency inputs]