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| Worried about US sanctions, Philippines Cancels Purchase of Russian Mi-17 helicopters |
Former Defense Secretary Delfin Lorenzana said late Tuesday he canceled a 12.7 billion pesos (USD227 million) deal to acquire Mi-17 helicopters in a decision last month approved by then-President Rodrigo Duterte, before the deadline. their term ends on June 30.
"We could face sanctions," Lorenzana told The Associated Press, explaining ways Washington could express its displeasure if the Philippines went ahead with the deal because of America's worsening conflict with Russia.
After serving as Chief of Defense under Duterte, Lorenzana has been appointed by new President Ferdinand Marcos Jr. to head a government agency tasked with turning a former military base into a business hub. Philippine Ambassador to Washington Jose Manuel Romualdez told the AP the deal was scrapped because Manila could face possible sanctions under a US federal law called the Countering America's Adversaries Through Sanctions if the helicopter deal is successful.
A Philippine military official said the helicopter deal would undergo a "termination process" after the decision to cancel it was made because the contract had already been signed. "Russia can appeal but there is little room for the Philippine government to reconsider," said the official, who spoke on condition of anonymity due to a lack of authority to discuss the matter publicly.
Under the helicopter purchase agreement, signed in November, the first batch of multipurpose helicopters will be scheduled for delivery by Russia's Sovtechnoexport in about two years. Asked in March if Russia's invasion of Ukraine would affect the purchase, Lorenzana told reporters: "We don't see the possibility it will be canceled at this point" and added that "only time will tell."
Lorenzana then said the initial payment had been made by the Philippines in January. However, it is not clear what will happen to the payments after the Philippines' decision to withdraw from the deal. The Russian-made helicopters could be used for combat, search-and-rescue operations and medical evacuations in the Southeast Asian archipelago, which is frequently hit by typhoons and other natural disasters, Philippine officials said.