NEW DELHI – Global tech giant Microsoft has restored critical IT services to Nayara Energy, the Russian-backed Indian oil refinery, just days after the latter initiated legal proceedings against the abrupt suspension of services. The move, confirmed on Wednesday, July 30, follows Nayara Energy's petition in the Delhi High Court challenging Microsoft's decision to halt access to essential digital tools like Outlook email and Microsoft Teams.
Microsoft had suspended its services on July 28, citing the European Union's recent inclusion of Nayara Energy in its new round of sanctions against Russia, targeting entities with significant Russian ties like Rosneft, which holds a 49.13% stake in Nayara. Nayara Energy, which operates India's third-largest refinery and a vast network of petrol pumps, immediately condemned Microsoft's action as "unilateral" and "without prior notice or legal basis" under US or Indian law. The company argued that the decision set a "dangerous precedent for corporate overreach," impacting its ability to conduct daily operations.
Faced with severe disruptions to its business continuity, Nayara Energy promptly moved the Delhi High Court, seeking an interim injunction to compel Microsoft to reinstate its services. The court had issued a notice to Microsoft, and a hearing was scheduled. However, sources familiar with the matter revealed that Microsoft chose to restore full access to Nayara's services just hours before the scheduled court appearance.
Following this development, Nayara Energy informed the Delhi High Court that its grievance had been resolved and subsequently withdrew its lawsuit. The court allowed the withdrawal, granting Nayara the liberty to approach the judiciary again if similar issues were to arise in the future.
A Microsoft spokesperson confirmed the restoration of services, stating, "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 organization." This statement indicates that while services are restored for now, the complexities of international sanctions and compliance for globally operating companies remain a subject of ongoing dialogue.
The incident underscores the challenges faced by businesses with international linkages in navigating the intricate web of global sanctions. Nayara Energy's successful legal challenge against a major tech firm highlights the assertion of local jurisdiction and the importance of ensuring business continuity even amidst complex geopolitical pressures.
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