Nayara Energy Takes SAP To Court

The Delhi High Court on Tuesday refused to grant interim relief to Nayara Energy, which had petitioned the court to restore critical software services suspended by SAP India. The suspension was implemented by SAP in compliance with European Union (EU) sanctions against Russia.

Justice Amit Bansal acknowledged the complexity of the issue, stating the matter was “not straightforward” and deferred the decision on interim relief until after SAP India presents its official response. The case is scheduled for its next hearing on October 29, 2025.

The dispute centers on Nayara Energy’s shareholding structure, as nearly half (49.13%) of the company is owned by Russian state-controlled oil major Rosneft. SAP cited these legal constraints under the EU sanctions as the reason for blocking the services.

Nayara Energy, which operates one of India’s largest refineries with a 20 million tonnes per annum capacity, argued that the suspension has crippled its operations. Crucially, it claimed the service disruption prevents the company from complying with India’s mandatory GST 2.0 regime and invoicing systems, exposing it to severe financial and legal penalties.

The refining company contends that since it operates and serves the Indian market, the suspension represents an extraterritorial application of EU law that unfairly undermines its domestic operational rights. The case highlights the difficult intersection of global geopolitical sanctions, mandatory corporate compliance, and sovereign domestic regulatory requirements.