Microsoft Suspends Services To Rosneft-Backed India Refiner

Microsoft Corp. has stopped providing services to Rosneft-backed Nayara Energy, the Indian oil refiner said in a statement, adding to challenges facing the company, which was recently hit with European Union sanctions.

The Mumbai-based firm filed a lawsuit in the High Court of Delhi against Microsoft for “abrupt and unilateral suspension of critical services,” according to the statement.

“This decision, based solely on Microsoft’s unilateral interpretation of recent European Union sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem,” Nayara said in the statement.

Microsoft didn’t immediately reply to an email seeking comment. 

India’s second-largest private oil refiner is having trouble running its 400,000-barrel-per-day refinery on the country’s west coast. Shipowners and oil traders are staying away after the EU sanctioned the company, claiming its profits support Russia’s war in Ukraine. The Russian oil giant Rosneft owns 49.13% of Nayara.

Microsoft is restricting Nayara’s “access to its own data, proprietary tools, and products — despite these being acquired under fully paid-up licenses,” according to the statement. 

Nayara said it sued Microsoft to avoid any disruption in serving its customers and partners. The company added that there’s no legal reason under US or Indian law for Microsoft to stop its services, since Microsoft is based in the US.

Nayara’s said all its operations are compliant with Indian laws and regulations, and the company regularly communicates with Indian authorities to ensure transparency and accountability.