Microsoft Corp. has restored all services, including email access, to Russian oil giant Rosneft-backed Nayara Energy. This action occurred just before a scheduled hearing in the Delhi High Court concerning the service suspension, according to sources. Earlier this week, Microsoft suspended its services to Nayara Energy after the European Union included the company in a new round of sanctions against Russia over the Ukraine war. In response, Nayara took the U.S. tech giant to the Delhi High Court, with a hearing set for Wednesday.
However, sources familiar with the situation stated that prior to the hearing, Microsoft reinstated full access to email, Microsoft Teams, and other services for Nayara.
A Microsoft spokesperson confirmed the restoration of Nayara's services. "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," the spokesperson said.
Microsoft's action unilateral
Nayara had characterised Microsoft's action as unilateral. In a statement on July 28, the company said, "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 licenses".
Russia’s role in Nayara Energy
Rosneft holds a 49.13 percent stake in Nayara Energy Ltd., formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonnes per year oil refinery at Vadinar in Gujarat and manages over 6,750 petrol pumps across the country. 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 S.p.A.).
"This decision, based solely on Microsoft's unilateral interpretation of recent European Union (EU) sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem," Nayara had said.
Petition before Delhi High Court
The firm had further stated that it filed a petition before the High Court of Delhi seeking an interim injunction and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure. "These steps are aimed at preventing any potential disruption to Nayara's ability to meet its obligations to Indian consumers and stakeholders," it had said.
Nayara believes that while the sanctions originate exclusively from the EU, Microsoft—a U.S.-headquartered corporation—chose to withdraw services from the company without any legal requirement to do so under U.S. or Indian law. "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," it had said.
Nayara accounts for about 8 percent of the country's total refining capacity and 7 percent of its retail petrol pump network.
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