Nayara moves Delhi HC after Microsoft abruptly stops services: How US companies have been used in NATO’s war against Russia
One of India’s key oil refining and marketing companies with Russian ownership, Nayara Energy, has filed a petition in the Delhi High Court against tech giant Microsoft. The company, in its petition, has accused Microsoft of abruptly suspending access to essential digital services, including email, without any prior notice. The company has said that Microsoft’s actions have jeopardised operations across its India network.
Sanctions fallout and operational impact
The development came in the wake of recent European Union sanctions on Nayara for having links with Russian oil giant Rosneft. Although Microsoft is based in the United States, Nayara argues that the company is under no obligation to enforce EU sanctions under US or Indian law.
Following the sanctions, at least two ships reportedly skipped loading refined products from Nayara’s Vadinar refinery, while one tanker carrying Russian Urals crude was diverted. Amid the turmoil, Nayara’s CEO resigned and has since been replaced by Sergey Denisov.
Nayara seeks urgent court relief
The petition seeks an interim injunction and immediate restoration of services. According to Nayara, Microsoft’s move was executed “unilaterally, without prior notice, consultation or recourse”, and under the “guise of compliance”. Notably, the company has emphasised that the suspended services were acquired under “fully paid-up licences”, which made the disruption even more unjustified.
The company stated that Microsoft’s actions have resulted in restriction of access to Nayara’s own data, proprietary tools and products. The disruption has had a direct operational impact since last Tuesday.
Strategic importance in India’s fuel economy
In its petition, the company has underlined its crucial contribution to India’s energy infrastructure. The company accounts for around 8% of India’s refining capacity and runs 7% of the country’s petrol pumps. It is also building around 8% of India’s polypropylene capacity.
Despite the current issues faced by the company, Nayara has reaffirmed its commitment to uninterrupted fuel supply across the country. It has stated that the company will continue to operate with full compliance under Indian regulations.
Earlier this month, the European Union imposed sanctions on Nayara’s Vadinar refinery as part of the 18th package of sanctions against Russia, which included asset freezes, shipping and insurance curbs, and a reduction in the price cap on Russian crude. The Government of India has categorically refused to recognise unilateral sanctions.
Following the sanctions, the company called EU’s move unjustified and illegal. The company said, “Recently, Nayara Energy has come under international scrutiny, facing political pressures and the imposition of sanctions by the European Union which have no legal basis. We categorically state that this unilateral move by the European Union is founded on baseless assertions, representing an undue extension of authority that ignores both international law and the sovereignty of India. It is to be noted that while many European countries continue to import Russian energy through various sources, they take a high moral ground by chastising and sanctioning an Indian asset for processing Russian crude largely used by its domestic population of 1.4 billion Indians and businesses.”
The Delhi High Court is expected to hear the matter shortly. Microsoft has not issued any official comment on the matter.
Big Tech as a geopolitical weapon in the West’s sanctions playbook
After Russia-Ukraine war broke in 2022, several major Western corporations suspended or froze operations in Russia. They cited compliance with international sanctions and geopolitical considerations. Global financial giants like Visa and Mastercard stopped their operations involving Russian banks which severely impacted cross-border payments. Tech companies including Google restricted access to various services, advertisements and monetisation channels.
Companies like McDonalds also pulled from Russia but their businesses were soon taken over by local brands. These actions formed part of a broader corporate exodus from Russia, with companies reassessing legal, ethical and reputational risks in the wake of the conflict and coordinated sanctions by the West.
News