'Indian Refinery with Russian Stake' Faces Service Suspension from Microsoft Following EU Sanctions

Nayara Energy Claims Microsoft's Interpretation of Sanctions is Unilateral; Files Lawsuit

Indian Prime Minister Narendra Modi (left) and Russian President Vladimir Putin [EPA Yonhap News File Photo. Reproduction and DB Prohibited]

Nayara Energy, an Indian private refinery in which a Russian state-owned company holds a significant stake, has been unable to receive services from Microsoft, the US software giant, following recent sanctions imposed by the European Union (EU).

According to Reuters and Bloomberg on the 29th, Nayara, headquartered in India's financial capital Mumbai, announced in a statement the previous day that it has filed a lawsuit with the Delhi High Court, accusing Microsoft of unilaterally suspending critical services.

Nayara criticized the decision, stating, "Microsoft is restricting access to our own data, obtained through licenses we have paid for," and that the "decision (to suspend services) is based on Microsoft's unilateral interpretation of EU sanctions."

The company added that it has filed a lawsuit against Microsoft to avoid disruptions in transactions with its clients and partners, emphasizing that all its operations are conducted in accordance with Indian laws and regulations.

Microsoft reportedly suspended services to Nayara on October 22nd.

This move by Microsoft follows the recent EU sanctions against Nayara.

The EU imposed sanctions on Nayara, in which Russia's state-owned energy company Rosneft holds a 49.13% stake, citing that Nayara's profits ultimately support Russia's war in Ukraine.

Reuters and other outlets reported that Microsoft has not issued any statement regarding Nayara's lawsuit.

Nayara is India's second-largest private refinery and processes 400,000 barrels of crude oil per day at its facilities on the coast of Gujarat state in western India.

Following the EU sanctions, shipowners and crude oil traders have reportedly distanced themselves from Nayara, and its CEO has also been replaced.

India maintains its military and economic cooperation with its traditional ally Russia while also collaborating with Western countries, including the United States. Yonhap News