Indian refiner Nayara Energy has filed a lawsuit against Microsoft in the Delhi High Court after the tech giant restricted its access to cloud services. The cutoff follows new European Union sanctions targeting entities linked to Russia, prompting Nayara to seek an immediate court order to restore its access.
Microsoft abruptly suspended critical services—identified by sources as Outlook email and Microsoft Teams—citing compliance with EU restrictive measures. Nayara claims this blocked access to data and proprietary tools despite their licenses being fully paid. Nayara argues the move was “unilateral” and taken “without any legal requirement under US or Indian law.” They accuse Microsoft of overreach by enforcing EU-specific regulations on an Indian company without prior notice.
To maintain operations, Nayara quickly signed with an Indian provider for hosted email services. The company emphasized its resilience, pointing to its level-three rated on-site data center at its Gujarat refinery. Legal observers note this case highlights the risks companies face when critical infrastructure depends on global cloud providers, who may cut services based on extraterritorial sanctions interpretations.
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