(MENAFN) India’s second-largest private oil processing firm has filed a lawsuit against Microsoft due to the American technology corporation's decision to halt essential digital services.

Nayara Energy, which is partially controlled by Russia’s Rosneft, issued a declaration on Monday asserting that Microsoft had limited its access to key data and proprietary software due to recent sanctions introduced by the European Union.

“Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services,” the statement noted.

“Microsoft is currently restricting Nayara Energy’s access to its own data, proprietary tools, and products—despite these being acquired under fully paid-up licenses.”

The company emphasized that this action was “based solely on Microsoft’s unilateral interpretation of recent European Union sanctions” and warned that it sets a “dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem.”

Earlier in July, the European Union enforced sanctions on the Vadinar refinery, owned by Nayara—a collaboration between Indian and Russian stakeholders, with Rosneft holding a 49% share.

These new restrictions affect the petroleum industry and include a prohibition on importing processed oil products originating from Russian crude, marking the first instance of such measures being applied to an Indian refiner.

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