UAE Cancels $20B Rafale Deal Despite Telegram CEO’s Release

UAE Cancels $20B Rafale Deal Despite Telegram CEO's Release
UAE Cancels $20B Rafale Deal Despite Telegram CEO’s Release

The UAE canceled its $20 billion deal with France for 80 Rafale fighter jets after French authorities detained Telegram CEO Pavel Durov. This decision escalates diplomatic tensions between the two countries, threatening their strong relationship.

Durov’s Arrest in Paris

French authorities detained Pavel Durov at a Paris airport after he arrived from Azerbaijan. They accused Durov, who holds UAE citizenship, of financial crimes, cyber offenses, drug trafficking, and child exploitation on Telegram. Durov denies these allegations, claiming they are politically motivated because he refused to give Western governments backdoor access to Telegram.

UAE Cancels Rafale Deal

In response to Durov’s arrest, the UAE canceled its Rafale deal with France. The $20 billion contract, signed in 2021 with Dassault, included 80 Rafale jets, with deliveries set to start in 2027. The UAE viewed the arrest as a violation of diplomatic norms and an insult to its sovereignty. Durov’s close ties with Zayed Al Nahyan, the Emir’s son, intensified the UAE’s reaction.

Impact on France

Canceling the Rafale deal hits France’s economy hard, especially its defense industry. It also strains relations with the UAE, which had been strong and cooperative.

President Emmanuel Macron tried to downplay the situation, insisting that Durov’s arrest wasn’t politically motivated and had no connection to the Russia-Ukraine conflict. However, the UAE remains unconvinced. The timing of the arrest and France’s earlier attempts to persuade Durov to relocate Telegram to France suggest deeper geopolitical motives.

Uncertain Future

Durov, released on a $5.56 million bond, cannot leave France and faces a long legal battle. The UAE’s decision to cancel the Rafale deal highlights how high-profile incidents can disrupt global diplomacy. The deal’s future is uncertain; analysts believe it could be renegotiated or permanently shelved. This situation underscores how quickly international politics can shift, with one event affecting billion-dollar agreements and altering diplomatic ties.

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