Microsoft has resumed IT services for Nayara Energy after a short suspension triggered by EU sanctions.
Microsoft’s IT support for Nayara Energy has been restored after a temporary interruption prompted by concerns over regulatory compliance. The tech giant had briefly halted assistance following the European Union’s sanctions targeting Russian entities that affected Nayara Energy, which has partial ownership from Russian stakeholders. However, Microsoft has now resumed its services, indicating a resolution or workaround that adheres to global compliance standards.
The suspension attracted attention due to Nayara Energy’s dependence on Microsoft’s digital infrastructure for its operations, making it a notable disruption. The swift resolution indicates effective collaboration between the two companies amid a challenging geopolitical and regulatory environment.
Microsoft has resumed its IT support for Nayara Energy. After the EU’s sanctions, Microsoft abruptly discontinued Outlook email and team messaging services, among other offerings, for Nayara.
Nayara Energy described Microsoft’s actions as unilateral and unfair. A report by Reuters stated that the company filed a petition against Microsoft in the Delhi High Court regarding the unexpected service cut.
Following the suspension of Microsoft’s services, Nayara began utilizing the offerings of Indian IT firm Rediff.com.
Services were abruptly terminated following the sanctions.
On July 18, 2025, the European Union (EU) announced new sanctions on Russia in connection with the Ukraine conflict. In response, Microsoft ceased Nayara’s IT services on July 22. These sanctions lowered the price cap on Russian oil from $60 per barrel to $47.6 per barrel.
Additionally, the EU banned the import of refined fuels including petrol and diesel made from Russian oil. This sanction had a direct impact on Nayara Energy, as Rosneft and other Russian investors own a 49.13% share in the firm. The EU contends that Nayara’s profits contribute to Russia’s military efforts.
Companies such as Nayara refine Russian crude oil into fuels like diesel, petrol, and jet fuel, exporting these products to Europe.
Nayara Energy stands as India’s third-largest refinery.
Nayara Energy, located in Vadinar, Gujarat, has a capacity of 400,000 barrels per day, accounting for approximately 8% of the country’s overall refining capacity. The company also manages over 6,750 petrol stations across India.
Energy security is a top priority for the Indian government, stated Vikram Misri.
Following the sanctions, Foreign Secretary Vikram Misri emphasized on July 22 that India prioritizes its energy security and will safeguard its interests regarding Russian oil purchases. This remark was made just before Prime Minister Narendra Modi’s trip to the UK, amid growing pressure from Western countries concerning India’s imports from Russia.
Vikram Misri remarked, “Energy security is the highest priority of the Indian government. We will take necessary steps to meet the demands of our 1.4 billion citizens.” He also emphasized that there should be no double standards in this situation.
Restrictions pose a risk to India’s petroleum exports.
Ajay Srivastava, founder of GTRI, noted, “India’s $5 billion worth of petroleum product exports to the European Union are at risk. Our petroleum exports to the EU have already dropped by 27.1%, falling from $19.2 billion in FY24 to $15 billion in FY25.”
India’s Oil Imports Have Increased Since the War’s Beginning.
Since the commencement of the Ukraine conflict in 2022, India has sharply escalated its oil imports from Russia. Initially, imports from Russia accounted for less than 1%, but they have now surged to 40-44%. In fiscal 2025, India imported $50.3 billion worth of crude oil from Russia, representing over one-third of its total $143.1 billion oil imports. The discounts from Russia have aided India in managing inflation effectively.
The United States is also applying pressure on India.
In addition to the European Union, the US has intensified its pressure on BRICS nations such as India, China, and Brazil concerning their purchases of Russian oil. US President Donald Trump and Senator Lindsey Graham have cautioned that if these countries persist in acquiring Russian oil, they could encounter severe tariffs ranging from 100% to 500%.
During an appearance on Fox News, the American Senator stated, “I will inform China, India, and Brazil that if you keep purchasing inexpensive Russian oil, which fuels this conflict, we will impose substantial tariffs on you.” He further commented, “We will devastate your economy because what you’re doing equates to profiting from the blood of the Ukrainian people.”
