Qatar on Thursday, October 26, delivered a startling blow to New Delhi by sentencing eight Indian nationals to death on charges of espionage for Israel. This development has caught India by surprise and has the potential to strain their historically friendly ties and trade relations.
The eight individuals in question were former Navy personnel who were employed at Al Dahra Global Technologies and Consultancy Services, a defense services provider company. While the company’s website no longer exists, it was known for offering training, logistics, and maintenance services to the Qatari Emiri Naval Force (QENF).
Reports from Wion suggest that the company had ties to the Qatari military and was advising on a top-secret submarine program. Qatari intelligence accused the eight Indians of passing sensitive data to Israel, leading to their detention in August of 2022. Their trial commenced on March 29 of the current year.
The Ministry of External Affairs expressed shock at the death penalty verdict on Thursday, October 26, and stated that they are “awaiting the detailed judgment” while actively “exploring all legal options.”
According to Indian Express, the reasons for the lengthy custody of these Indian nationals in Qatar and the subsequent death sentences have not been disclosed publicly. According to Hindustan Times, India has quietly launched efforts to find a resolution, though authorities in both countries remained tight-lipped on the matter on Friday.
This case presents a formidable diplomatic challenge for the Indian government.
Notably, India and Qatar share strong economic ties. In 2021, India ranked among the top four export destinations for Qatar, with India being among the top three sources of Qatar’s imports. However, the balance of trade leans heavily in Qatar’s favor, with imports from Qatar significantly outweighing India’s exports. One critical aspect of this trade relationship is liquefied natural gas (LNG).
Sukalp Sharma of the Indian Express points out that Qatar is India’s largest supplier of LNG, accounting for almost 50% of overall Indian imports (by value) from Qatar. In the fiscal year 2022-23, India’s total imports from Qatar were valued at $16.81 billion, with LNG imports alone accounting for $8.32 billion, or 49.5% of this total. Other major imports from Qatar include liquefied petroleum gas (LPG), plastics, and petrochemicals.
Conversely, India’s exports to Qatar were valued at just $1.97 billion in the same fiscal year. These exports include items such as cereals, copper articles, iron and steel products, vegetables, fruits, spices, and processed food items.
LNG is a vital component of India’s energy mix, and, therefore, India has set ambitious targets to increase its share in the primary energy mix, resulting in a rapid rise in LNG imports over the coming years. While Indian LNG importers have been exploring diversification efforts, the high reliance on Qatar is expected to continue for several more years. The global LNG market’s extreme price volatility, especially amid the Russia-Ukraine conflict, has underscored the importance of long-term contracts with Qatar over spot purchases to secure stable supplies at reasonable prices.
In this context, India’s diplomatic challenge over the death sentences of the retired Navy personnel assumes a heightened sensitivity. India’s energy security and ambitious plans for natural gas usage underscore the significance of maintaining favorable relations with Qatar, the world’s largest LNG exporter. Existing term contract of India’s Petronet LNG Ltd with Qatar is set to expire in 2028, and negotiations for an extension are underway. Additionally, India is actively pursuing more long-term LNG contracts.
The case of the Indian nationals facing death sentences in Qatar not only poses a grave diplomatic challenge but also highlights the delicate balancing act between India’s diplomatic concerns and its energy security interests.
Disclaimer: This news article was written by Mokokchung Times with inputs from sources as cited.