Nayara Energy, an Indian oil refining and marketing firm supported by Russian investment, has filed a legal case against Microsoft. The company claims that the U.S. tech giant suddenly and independently halted critical services without issuing any prior notice or communication. In response to the termination of Microsoft services, the Indian oil refining firm filed a lawsuit against the American tech giant in the Delhi High Court on Monday. Market analyst Prathamesh Godbole pointed out on Twitter that this should serve as a wake-up call for large Indian firms. He also noted that a capable homegrown alternative, Zoho, is already available and deserves more attention.
Indian co losing access to MS Office due to EU sanctions should be a wakeup call for bigcos.
— Prathamesh Godbole | प्रथमेश गोडबोले (@prathgodbole) July 29, 2025
An Indian alternative already exists- Zoho.
— Prathamesh Godbole | प्रथमेश गोडबोले (@prathgodbole) Nayara stated that it initiated legal proceedings against Microsoft
Nayara stated that it initiated legal proceedings against Microsoft to ensure uninterrupted operations for its clients and business associates. The company further emphasized that, given Microsoft’s U.S. headquarters, there is no lawful basis under either Indian or American regulations for the suspension of its services. According to Nayara, Microsoft did not discuss or notify the company before cutting off services.
“Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services. Microsoft is currently restricting Nayara Energy’s access to its own data, proprietary tools, and products – despite these being acquired under fully paid-up licences,” the company said in a statement.
“This decision, based solely on Microsoft’s unilateral interpretation of recent European Union (EU) sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem,” Nayara added.
European Union placed sanctions on Nayara Energy
At the beginning of this month, the European Union placed sanctions on Nayara Energy as part of a fresh series of actions targeting Russia in response to its ongoing conflict with Ukraine.
India’s second-biggest privately owned oil refiner is facing operational challenges at its west coast facility, which has a processing capacity of 400,000 barrels per day. Oil traders and shipping companies are distancing themselves following European Union sanctions against the company, alleging that its earnings are indirectly aiding Russia’s military actions in Ukraine. Russian energy major Rosneft holds a 49.13% stake in Nayara Energy.
