# “The EU anti-sanctions law is among the options (being looked at) It does offer a template… There is a compelling need to have a mechanism in place,” a senior government official told The Indian Express.

*business · news · 2026-05-04 · The Indian Express*

## Key points

- India is considering adopting an EU-style anti-sanctions law to protect domestic companies from foreign sanctions.
- The Finance Ministry has proposed requiring Indian companies to use local subsidiaries of global vendors for contracts.
- Microsoft's automatic suspension of services to Nayara Energy was triggered by a legacy compliance system now changed.
- India is debating a policy that may require critical sectors to use only domestically-made sovereign cloud systems.
- Microsoft admitted its system wrongly presumed EU jurisdiction over Indian entities, leading to unintended enforcement.

**Companies:** Microsoft, Nayara Energy
**Countries:** India, Russia, European Union

[Read the full story on The Indian Express](https://indianexpress.com/article/business/govt-explores-eu-like-law-to-safeguard-firms-against-third-countries-sanctions-10671168/)

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