On 18 July 2025, the European Union (EU) imposed sanctions on oil refining company Nayara Energy, citing its majority ownership by Russian oil giant Rosneft, as part of sanctions over Russia’s Ukraine offensive. This action has triggered compliance responses by global tech firms.
Soon after the EU sanctions, Microsoft abruptly suspended access to Outlook, Teams, and other core tools for Nayara Energy. This occurred despite Nayara holding fully paid-up, valid licenses for Microsoft's services, restrictions on which have affected critical business systems for the company.
Microsoft’s blackout blocked access to employees’ Microsoft‑cloud data, email, and collaboration tools. Internal workflows and operational communications collapsed immediately, as no advance warning or transition planning was provided to the company.
Nayara Energy is 49% owned by Russia’s Rosneft, making it vulnerable under EU sanctions. Though Nayara operates in India, this ownership link triggered compliance actions by Microsoft, which interpreted the EU rules as applicable in this case.
Nayara filed a petition in the Delhi High Court, seeking restoration of services and legal safeguards. It argued that Microsoft’s action was unilateral, without notice or consultation, and lacked grounding in Indian or US law.
Nayara emphasised that its licenses were valid and compliant, that its business was registered under Indian jurisdiction, and that any service suspension should have followed prior notice.
Following the disruption, Nayara has relied on Rediff.com for internal communications. While Rediff supported basic email, it could not recover MS-stored emails or files, leaving legacy data inaccessible.
Just before the Delhi court hearing, Microsoft restored access to Outlook, Teams, and cloud tools on 30 July 2025. Nayara subsequently withdrew its petition in court, though retained the option to refile if disruptions recurred.
The incident highlights the fragility from over-reliance on single foreign tech providers. Experts have called for digital sovereignty, contractual protections, multi-cloud strategies, and local alternatives to avoid being shut down by geopolitical compliance issues.
