MANILA: The government of the Philippines announced on Wednesday that it is officially terminating a 12.7 billion peso (USD 227 million) contract to buy 16 Russian military transport helicopters.

According to Arsenio Andolong, the Department's spokesman, "The Department of National Defence is formally terminating the contract with SOVTECHNOEXPORT LLC of Russia for the procurement of 16 units of Mi-17 heavy-lift helicopters for the Philippine air force."

Andolong said the Department's contract review committee will,  "undertake the necessary procedures and exercise due diligence."

In a statement, he said, "We are also getting ready to open a diplomatic engagement with the Russian side regarding concerns emerging from the project's cancellation.

Former Defence Secretary Delfin Lorenzana mentioned the decision to cancel the contract was made in the last days of administration of former President Rodrigo Duterte due to worries of US sanctions amid the Russia-Ukraine war.

Lorenzana said the decision was made after the Philippine ambassador to the United States Jose Manuel Romualdez warned that "the disadvantage that - the Philippines will get is more than (the advantage) if we get the choppers".
As for the government's ability to recoup a 2-billion-peso down payment paid for the deal, Lorenza said he was unsure.

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