The US tech giant made the decision after being taken to court by Nayara Energy

Microsoft has resumed providing critical digital services to Indian refiner Nayara Energy after the latter sued the US tech giant in the Delhi High Court.

Nayara, a company partly owned by Russia's Rosneft, told the court on Monday that Microsoft had restricted its access to data, proprietary tools, and products on account of European Union sanctions.

"Microsoft is committed to supporting all its customers in India and worldwide, and has restored services for Nayara Energy," the company said in a statement on Wednesday. "We are engaged in ongoing discussions with the European Union towards service continuity for the organization."

The refiner said on Wednesday that its services had been restored. "Nayara Energy confirms that all Microsoft services critical to its operations have been fully restored, with no disruption to business continuity and data integrity remaining fully intact," it said in a statement. "We acknowledge the prompt intervention of the Honorable Delhi High Court in facilitating the resolution of this matter. The petition was disposed of by the High Court in favour of Nayara Energy."

The court granted the company the liberty to approach it again should similar grievances arise, according to the report.

Nayara had requested an interim injunction and the resumption of Microsoft's services to protect its rights and ensure uninterrupted access to critical digital infrastructure. The company said in a statement on Tuesday that Microsoft's decision set a "dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem."

The refiner has meanwhile begun migrating to domestic digital service providers to ensure business continuity, according to a report in the Mint newspaper. It had initiated the legal action to obtain urgent relief while pursuing broader strategic transitions to alternative service providers, the report added.

Earlier this month, the EUimposed sanctionson the Vadinar refinery, which is controlled by Nayara, an Indo-Russian joint venture in which Rosneft holds a 49% stake.

The sanctions specifically target the oil sector and include a ban on importing refined petroleum products made from Russian crude. This marked the first time an Indian refiner has been subject to such measures.

(RT.com)