MANILA, Philippines (AP) — The Philippine government has backed out of a deal to buy 16 Russian military transport helicopters over fears of possible U.S. sanctions, Philippine officials said.
Former Defense Secretary Delfin Lorenzana said Tuesday night that he canceled the 12.7 billion peso ($227 million) deal to acquire Mi-17 helicopters in a decision last month that was approved by then-President Rodrigo Duterte before their terms expire on June 30.
“We could face sanctions,” Lorenzana told The Associated Press, describing ways Washington could express its displeasure if the Philippines went ahead with the deal because of America’s worsening conflict with Russia.
US security officials were aware of Manila’s decision and could offer similar heavy-lift helicopters for Philippine military use, he said.
After serving as Duterte’s defense chief, Lorenzana was appointed by new President Ferdinand Marcos Jr. to head a government agency responsible for transforming former military bases into business hubs.
The Philippines’ ambassador to Washington, Jose Manuel Romualdez, told the AP that the deal was canceled because Manila could face possible sanctions under a U.S. federal law called the Countering America’s Adversaries Through Sanctions Act if the helicopter deal goes through. carried out.
A Philippine military official said the helicopter deal will undergo a “termination process” once a decision is made to cancel it, as the contract has already been signed. The Russians can appeal, but the Philippine government does not have much room for reconsideration, said the official, who spoke on condition of anonymity because he was not authorized to discuss the matter publicly.
According to the contract for the purchase of helicopters, which was signed in November, the first batch of multi-role helicopters was to be delivered by Russia’s Sovtechnoexport in about two years.
Asked in March whether Russia’s invasion of Ukraine would affect the purchase, Lorenzana told reporters: “We don’t see any likelihood of it being scrapped at this point,” adding that “only time can tell.”
At the time, Lorenzana said an initial payment was made by the Philippines in January. It was unclear what would happen to the payment following the Philippines’ decision to withdraw from the deal.
The Russian-made helicopters could be used for combat, search and rescue operations and medical evacuation in the Southeast Asian archipelago, which is often hit by typhoons and other natural disasters, Philippine officials said.
In March, the Philippines voted in favor of a UN General Assembly resolution that demanded an immediate halt to Moscow’s attack on Ukraine and the withdrawal of all Russian troops. It condemned the incursion and reiterated UN Secretary-General Antonio Guterres’ call for humanitarian principles to be respected to protect civilians and civilian infrastructure in Ukraine.
Duterte expressed concern about the global impact of the Russian invasion, but did not condemn it personally. When in office, he maintained close ties to Russian President Vladimir Putin, whom he once called his “idol,” and Chinese leader Xi Jinping, while frequently criticizing U.S. security policies.
The Philippines is a treaty ally of Washington, which has imposed heavy sanctions aimed at pressuring Moscow to withdraw from Ukraine.
The deal to acquire the Russian helicopters was among several arms purchase agreements signed in the final months of Duterte’s administration.
Last February, Lorenzana signed a 32 billion peso ($571 million) deal to acquire 32 S-70i Black Hawk helicopters from Poland-based aerospace manufacturer PZL Mielec. It was the largest military aircraft acquisition contract signed under Duterte, Philippine defense officials said.
Due to financial constraints, the Philippines has struggled for years to modernize its military, one of the most underfunded in Asia, to deal with decades-long Muslim and communist insurgencies and defend its territories in the disputed South China Sea.
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