Russia-backed Nayara taps Indian IT firm after Microsoft suspends service

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Logo of Nayara is seen at its fuel station on the outskirts of Ahmedabad

Logo of Nayara is seen at its fuel station on the outskirts of Ahmedabad, India, November 16, 2022. REUTERS/Amit Dave/File Photo Purchase Licensing Rights, opens new tab

NEW DELHI, July 29 (Reuters) - Russia-backed Indian refiner Nayara Energy, recently sanctioned by the European Union, has turned to domestic firm Rediff.com after the U.S. tech giant Microsoft

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suspended IT services, three sources familiar with the matter said.

Nayara, which has condemned the sanctions, said on Monday it had filed a case against Microsoft in the Delhi High Court over its withdrawal of services.

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Nayara, a major buyer of Russian oil that is 49% owned by Russian oil major Rosneft

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, has struggled with disruptions since coming under European Union sanctions this month targeting Russia over its war in Ukraine, including trimming refinery runs.

Sources told Reuters that since last Tuesday, Microsoft had halted services for Nayara, and that employees' Outlook email and Teams messaging accounts had not been working.

The Rediff.com service can facilitate communications among Nayara employees but cannot retrieve data and previous emails stored on Microsoft's cloud, sources said.

The sources spoke on condition of anonymity as they were not authorised to speak to media.

Nayara and Rediff did not immediately respond to requests for comment.

Mumbai-based Rediff offers online consumer services and also provides cloud-based email services for businesses.

Reporting by Nidhi Verma; Additional reporting by Munsif Vengatti in Bangalore; Editing by Clarence Fernandez and Kevin Liffey

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Nidhi Verma is an award-winning journalist working with Reuters. Presently, she is working as Team Leader-Energy in India. She has more than two decades of experience in covering India and global energy sector. Her stories show a new dimension of the energy sector, the nuances of the oil trade, the role of geopolitics and the diplomatic efforts that a country makes to mitigate the impact of external shocks.

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