Why oil refiner Nayara Energy has withdrawn lawsuit against Microsoft
What's the story
Russia-backed Nayara Energy, one of India's leading oil refining companies, has withdrawn its lawsuit against tech giant Microsoft. The decision comes after the latter restored essential digital services that were earlier suspended, affecting Nayara's operations. The Delhi High Court accepted Nayara's request to withdraw the case and permitted them to approach the court again if similar issues arise in future.
Legal proceedings
HC had issued notice to Microsoft
On July 28, the Delhi HC had issued a notice to Microsoft on Nayara's plea for an interim injunction and immediate restoration of access to essential software, tools, as well as digital infrastructure. Nayara had claimed that Microsoft unilaterally suspended services despite having valid licenses for all Microsoft products. The company argued that Microsoft's action was solely based on EU sanctions announced on July 18 against Nayara, as part of broader efforts to pressure Russia over its invasion of Ukraine.
Sanction impact
Nayara argued EU sanctions were unilateral
Nayara, which is partly owned by Russian oil giant Rosneft, had maintained that Microsoft's decision was not supported by US/Indian law and was a case of corporate overreach. The firm argued the EU sanctions were unilateral and not applicable to US corporations, especially when the affected entity operates under Indian jurisdiction. Nayara also pointed out how decisions based on foreign laws might mess with Indian businesses—especially when they run a huge refinery that keeps about 8% of India's oil flowing.
Operational continuity
Transitioning to local digital providers
In response to Microsoft's service suspension, Nayara had started transitioning to local digital providers for business continuity. To note, the legal action was taken to secure immediate relief while broader strategic transitions were underway.