Nayara Sues Microsoft After EU Sanctions Disrupt Russian-Backed Refiner

Indian refiner Nayara Energy has initiated legal proceedings against Microsoft after the U.S. software company abruptly halted key cloud and collaboration services, including Outlook and Teams, last week. Nayara told the Delhi High Court that the suspension was unilateral, offered no prior notice and has left the company unable to access its own data and licensed tools. Seeking an interim injunction, the refiner argues the outage threatens critical operations that rely on Microsoft’s digital infrastructure. Microsoft declined to comment on the dispute. According to people familiar with the matter, the services were cut on July 22 as the technology firm reviewed compliance following European Union sanctions on Nayara announced on July 21. The sanctions target the refiner because it is 49.1% owned by Russia’s Rosneft PJSC and other Russian entities. Since the EU move, at least two product tankers have cancelled loadings at Nayara’s Vadinar facility, and one Russian Urals crude shipment was diverted. Facing shipping and trading constraints, Nayara is turning to alternative crude suppliers. A very-large crude carrier carrying Iraqi oil is scheduled to discharge at Vadinar on July 28, which traders say will be the company’s first non-Russian crude intake since the sanctions. The refiner, India’s second-largest processor of Russian barrels, has also tightened its product-sale terms and seen its chief executive depart, replacing him with Sergey Denisov.