The diplomatic fallout from the arrest of Telegram CEO Pavel Durov continues to escalate, as the United Arab Emirates (UAE) has decided to cancel its US$20 billion deal with France for 80 Rafale fighter jets. The decision comes in the wake of Durov's brief detention by French authorities, a move that has strained relations between the UAE and France, despite Durov's release on bail.Durov, who holds UAE citizenship alongside several other nationalities, was arrested on Saturday at a Paris airport after arriving from Azerbaijan. The arrest was reportedly linked to accusations from French authorities, including allegations of financial crimes, cyber offenses, drug trafficking, and child exploitation on the Telegram platform. While Durov has consistently denied these allegations, claiming they are politically motivated due to his refusal to grant Western governments’ backdoor access to Telegram, the arrest has nonetheless triggered significant diplomatic repercussions. According to reports in the public domain, the UAE, a close ally of Durov, has expressed its anger over the arrest, viewing it as an affront to its sovereignty and a violation of diplomatic norms. Durov’s connections in the UAE, particularly his relationship with the Emir’s son, Zayed Al Nahyan, have only intensified the situation. The UAE government’s decision to halt the Rafale deal, which was signed with French aerospace company Dassault in 2021, is seen as a direct response to Durov’s treatment.The deal, which was valued at US$20 billion, was one of the largest defense contracts signed by the UAE in recent years. It included the delivery of 80 Rafale fighter jets, with the first batch expected to arrive in 2027. The cancellation of this deal not only represents a significant economic loss for France but also marks a sharp deterioration in UAE-France relations, which had been strong and cooperative until this incident.French President Emmanuel Macron has attempted to mitigate the situation, stating that Durov's arrest was not politically motivated and was unrelated to the Russia-Ukraine conflict. However, these assurances have done little to appease the UAE. The timing of the arrest, coupled with previous reports that France had unsuccessfully courted Durov to relocate Telegram’s operations to French soil in 2018, has fueled speculation that deeper geopolitical motives may be at play.Despite his release on a US$5.56 million bond, Durov’s legal troubles are far from over. He remains barred from leaving France, and the charges against him could lead to a lengthy legal battle. Meanwhile, the UAE’s decision to stand by Durov underscores the complex web of international relations and the significant impact that the arrest of a high-profile individual can have on global diplomacy.The future of the Rafale deal now hangs in the balance, with analysts suggesting that it could be renegotiated or permanently shelved, depending on how the situation unfolds. For now, the cancellation serves as a stark reminder of the unpredictable nature of international politics, where a single arrest can derail multi-billion-dollar agreements and alter the course of diplomatic relations.