Fearing US sanctions, Philippines scraps US$227 million deal to buy 16 Russian helicopters

Manila could face possible sanctions under a US federal law called the Countering America’s Adversaries Through Sanctions Act if deal went through

US$227 million deal to purchase 16 Mi-17 helicopters from Moscow was originally approved by former President Rodrigo Duterte

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Published: 8:49am, 28 Jul 2022Updated: 8:53am, 28 Jul 2022

The Philippine government has scrapped a deal to purchase 16 Russian military transport helicopters due to fears of possible US sanctions, Philippine officials said.

Former Defence Secretary Delfin Lorenzana said on Tuesday night he cancelled the 12.7-billion-peso (US$227 million) deal to acquire the Mi-17 helicopters in a decision last month that was approved by then-President Rodrigo Duterte before their terms in office ended on June 30.

“We could face sanctions,” Lorenzana told Associated Press, describing ways Washington could express its displeasure if the Philippines proceeded with the deal due to America’s worsening conflict with Russia.

American security officials were aware of Manila’s decision and could offer similar heavy-lift helicopters for Philippine military use, he said.

After serving as defence chief under Duterte, Lorenzana has been appointed by new President Ferdinand Marcos Jnr to head a government agency in charge of transforming former military bases into business hubs.