India's Nayara Energy initiates legal action against Microsoft over service suspension

Nayara Energy initiated legal action against Microsoft after the "abrupt and unilateral" suspension of critical services, which has restricted the Rosneft-backed Indian private refiner's access to its data and proprietary tools, the company said July 28.

"This decision, based solely on Microsoft's unilateral interpretation of recent EU sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem," Nayara said in a statement.

The EU sanctioned Nayara's 400,000 b/d Vadinar refinery on July 18. Nayara owns about 8% of the country's total refining capacity, about 7% of India's retail fuel station network and an estimated 8% of polypropylene capacity.

Nayara said it had filed a petition with the Delhi High Court 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."

The statement said all of Nayara's operations were fully compliant with Indian laws and regulations, and the company remains regularly engaged with Indian authorities to ensure transparency and accountability.

Microsoft did not immediately respond to a request for comment on the matter.

Navigating sanctions

The Vadinar refinery has received 403,000 b/d of crude so far this year, of which 72% has been Russia-origin crude grades, according to S&P Global Commodities at Sea.

Nayara has called the EU's sanctions on its Vadinar refinery "unjust," as they undermine India's interests and risk disrupting petroleum supplies. The Indian government has said it does not subscribe to any unilateral sanctions and is fully committed to its legal obligations.

Sources close to Nayara told Platts, part of S&P Global Energy, that Sergey Denisov replaced Alessandro des Dorides as Nayara's CEO in July, following des Dorides's resignation.

The company has not officially announced the appointment and declined to comment on it. The sources said the change in leadership comes as Nayara considers strategies to navigate the sanctions.