Nayara Energy moves Delhi HC against Microsoft for suspending key services

Nayara Energy has filed a case against Microsoft in Delhi High Court over the sudden suspension of licensed services, including email and Teams, following EU sanctions on its Russian-linked ownership

Indian oil refining and marketing company, Nayara Energy, which is backed by Russian investment, has taken legal action against Microsoft. The company said the US-based tech firm had abruptly and unilaterally suspended essential services without any prior warning.

 

"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," stated Nayara.

Petition filed in Delhi HC

The company has filed a petition in the Delhi High Court. It is seeking 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.

 

 

"This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance," the statement added.

Sanctions lead to disruptions

Nayara, which purchases large volumes of Russian oil, was recently sanctioned by the European Union. The company is mostly owned by Russian entities, including oil giant Rosneft. Although the sanctions are from the EU, Nayara claims that Microsoft -- a US-based firm -- is not legally required to enforce them under American or Indian law.

 

Despite this, sources said Microsoft suspended Nayara’s services last Tuesday. Since then, email accounts and Teams access for Nayara employees have been unavailable. Microsoft has not commented on the matter.

 

Following the sanctions, at least two ships avoided loading refined products from Nayara's Vadinar facility. One crude tanker carrying Russian Urals was also diverted. In addition, Nayara's CEO resigned and was replaced by Sergey Denisov.

Key role in India’s energy sector

Nayara Energy highlighted its important role in India’s fuel economy. The company contributes around 8 per cent of the country's refining capacity and 7 per cent of its petrol pump network. It is also developing about 8 per cent of India’s polypropylene capacity.

 

While facing these challenges, Nayara said it remains committed to maintaining uninterrupted supply across India.

Focus on domestic market and growth

Operating under the motto “In India, for India”, Nayara mainly serves the domestic market through retail outlets, institutional sales, and partnerships with other oil marketing companies. The company is also investing in petrochemicals and clean energy, generating thousands of jobs.

 

Nayara added that it complies fully with Indian regulations and continues to work closely with Indian authorities to maintain transparency and accountability.