Microsoft updates global sanctions policy after Nayara Energy debacle
Microsoft is changing how it handles global sanctions after a messy situation with Nayara Energy in July 2025.
In July 2025, Microsoft cut off Nayara's access to Outlook and Teams because of EU sanctions tied to Russian ownership.
This sudden move disrupted business for its employees in India, leading Nayara to take Microsoft to court—following which Microsoft restored services.
Microsoft promises to give advance notice in future
Microsoft admits its automated system went too far by applying EU rules everywhere without considering local realities.
Now, any big enforcement decision gets a legal review from top leadership, and affected clients get advance notice when possible.
The company says it's focused on balancing compliance with operational continuity so future mistakes don't leave customers stranded again.