TSAMTO, July 28. According to Philippine officials, the government has decided to cancel the purchase of 16 Russian Mi-17 military transport helicopters for fear of falling under US sanctions.
According to the Associated Press, former Defense Minister Delfin Lorenzana said on July 27 that last month he canceled a deal worth 12.7 billion pesos for the purchase of Mi-17 helicopters, which was previously approved by President Rodrigo Duterte.
The minister pointed out to the agency that if the Philippines continued to implement the deal, Washington could express its displeasure against the background of the aggravation of the conflict between the United States and Russia. According to him, the employees of the American law enforcement agencies knew about Manila's decision and offered to replace American-made heavy helicopters for the Armed Forces of the Philippines.
After resigning from the post of Defense Minister, D. Lorenzana was appointed by the new President Ferdinand Marcos Jr. as the head of the state agency responsible for the transformation of former military bases into business centers.
Philippine Ambassador to Washington Jose Manuel Romualdez confirmed to AP that the deal was canceled because Manila could face possible sanctions under the Countering America's Adversaries through Sanctions Act (CAATSA).
A representative of the Armed Forces of the Philippines, on condition of anonymity, said that the helicopter deal will undergo a "termination procedure", since the contract has already been signed. The Russian side can appeal, but the Philippine government has limited opportunities to review the decision.
In accordance with the agreement on the purchase of helicopters, which was signed in November 2021, the first batch of Mi-17 was planned to be delivered in two years.
In March of this year, D. Lorenzana, answering a question about whether Russia's operation in Ukraine would affect the purchase, told reporters that he did not see any prerequisites for termination, but only time will tell how events will develop.
D. Lorenzana then said that the initial payment for the helicopters was made by the Philippines in January. It is not yet clear what will happen to this payment after the Philippines' decision to abandon the deal.
According to Philippine officials, Russian-made helicopters were planned to be used for combat support, search and rescue operations and medical evacuation in the Southeast Asian region, which is often affected by typhoons and other natural disasters.
In March, the Philippines voted in favor of a UN General Assembly resolution demanding an immediate cessation of hostilities in Ukraine and the withdrawal of all Russian troops. R. Duterte expressed concern about the global consequences of the conflict, but did not condemn it personally. During his time in power, he maintained close ties with the Russian leadership and once called Russian President Vladimir Putin his "idol." The deal for the supply of Russian helicopters was one of several agreements on the purchase of weapons signed in the last months of R. Duterte's stay in power.
In February last year, the Armed Forces of the Philippines also ordered 32 S-70i Black Hawk helicopters for 32 billion pesos ($571 million), which will be assembled at the Polish company PZL Mielec, which is a division of the American Sikorsky.
As reported by TSAMTO, the Philippine Ministry of Defense signed a contract for the supply of 16 Mi-17 helicopters with a total value of 12.7 billion Philippine pesos ($243.6 million) in November 2021. The advance payment was made in January 2022. The program was funded from the State budget as part of the "Armed Forces Modernization Program of the Philippines" (RAFPMP).
The Ministry of Budget and Management of the Philippines has issued a special order for the allocation of funds (SARO) in the amount of 1.919 billion filip. pesos ($41.56 million) for the transfer of a 15 percent advance payment for the supply of heavy transport helicopters in accordance with the requirements of the Philippine Armed Forces modernization program in November 2020.
The Philippine Air Force has been seeking to purchase heavy transport helicopters since the 1990s. However, past attempts to purchase the American CH-47 Chinook have failed due to lack of financial resources.
