Microsoft Corp restored services to Russia-backed Nayara Energy on July 30 after the company moved court against US tech giant, calling the suspension “abrupt and unilateral”, sources told Moneycontrol.
"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," a company spokesperson said.
Following European Union sanctions on Nayara Energy, Microsoft on July 22 suspended tech support, affecting company employees’ Outlook and Teams accounts. Six days later, the Indian refiner on July 28 initiated legal proceedings against Microsoft in the Delhi High Court over suspension of services. On July 30, the petition was disposed of by the High Court in favour of Nayara Energy, the company said.
"Nayara Energy confirms that all Microsoft services critical to its operations have been fully restored, with no disruption to business continuity and data integrity remaining fully intact. We acknowledge the prompt intervention of the Hon’ble Delhi High Court in facilitating the resolution of this matter," the refinery told Moneycontrol.
Nayara, while filing the petition before the High Court, had said that Microsoft was restricting the refiner’s access to its data, proprietary tools and products despite these being acquired under fully paid-up licences.
"This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability," the refiner had said.
A senior government official also confirmed restoration of tech services to Nayara Energy. The official said companies should have service providers alternatives in place, so that they do not solely rely on a single supplier or a country.
"We are constantly working on internet resilience, cybersecurity; it is part of our digital infrastructure. We cannot depend, over-depend on any one supplier, or any one country. That is always going to be a problem," the official said on condition of anonymity.
Nayara Energy, which is 49 percent owned by Russian oil major Rosneft, was directly sanctioned by the European Union under the group’s 18th sanctions package announced on July 18.
The sanctions are aimed at restricting import of Russian-oil processed refined products to limited financial capabilities of Moscow to pressure it into ending the Ukraine war.
Nayara Energy imports significant quantity of discounted Russian crude oil, which is processed in its Gujarat refinery to be later exported to several markets, including Europe.
“Its (Nayara) exports to the EU are now banned, and associated financial, insurance, and shipping services face curbs. The immediate operational impact is evident, skipping tenders and stranded cargoes. The refinery now faces margin pressure unless it can reroute volumes to Asia or Africa. Its ownership structure also raises concerns around financing and long-term access to global trade flows,” said Harshraj Aggarwal, lead analyst at Yes Securities.
Nayara Energy’s Vadinar refinery started commercial production in May 2008 and accounts for 8 percent of India’s total refining capacity.
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