Home / Business and Economy / Court sides with Nayara in SAP software dispute
Court sides with Nayara in SAP software dispute
21 Sep
Summary
- Delhi High Court granted interim relief to Nayara Energy.
- SAP India suspended critical software services due to EU sanctions.
- Nayara argued SAP used EU curbs to bypass Indian contractual obligations.
The Delhi High Court provided interim relief to Indo-Russian oil company Nayara Energy on Monday, ruling in its favor against SAP India. The court allowed Nayara's request for the restoration of suspended software services provided by SAP. This dispute originated in July 2025 when SAP India halted all critical software support, including maintenance and expert services.
SAP cited EU sanctions against Rosneft, a significant shareholder in Nayara, as the reason for the suspension. Nayara contested this, arguing that SAP was leveraging foreign sanctions to breach its contracts governed by Indian law, despite payments being made in Indian currency. The company emphasized the critical nature of the software for its refinery operations, which significantly contribute to India's energy production.
SAP maintained that as a Germany-headquartered entity, it had to comply with EU sanctions. The ongoing conflict in Ukraine has seen several IT companies suspend services to Russian-linked entities, disrupting businesses reliant on Western ERP platforms. This situation echoes past instances where international vendors withdrew support following US sanctions on Iran.
