Nayara Energy has taken the US tech giant to court for restricting its access to data and proprietary tools

India's second largest private oil refiner has sued Microsoft over the US tech giant's decision to suspend critical services. 

Nayara Energy, a company partly owned by Russia's Rosneft, said in a statement on Monday that Microsoft had restricted its access to data and proprietary products on account of European Union sanctions. 

"Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services," the company said. "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."

It added that the decision was "based solely on Microsoft's unilateral interpretation of recent European Union sanctions" and sets a "dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem."  

Earlier this month, the EU announced sanctions on the Vadinar refinery, which is owned by Nayara, an Indo-Russian joint venture in which Rosneft has a 49% stake. The new sanctions target the oil sector, including a ban on importing refined petroleum products from Russian crude and were the first imposed on an Indian refiner.

Rosneft has called the bloc's decision "unjustified and illegal." 

On Monday Nayara questioned the legality of Microsoft's moves. 

"While the sanctions originate exclusively from the EU, Microsoft - a U.S.-headquartered corporation -has chosen to withdraw services from Nayara Energy without any legal requirement to do so under U.S. or Indian law," the refiner said."This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability." 

In its petition to the Delhi court on Monday, the company requested an interim injunction and the resumption of Microsoft's services to protect its rights and ensure uninterrupted access to critical digital infrastructure. 

"These steps are aimed at preventing any potential disruption to Nayara's ability to meet its obligations to Indian consumers and stakeholders," the company said.