The Department of National Defense (DND) is looking forward to the cordial conclusion of the termination of its P12.797-billion helicopter acquisition project with Russia.
The DND, under the leadership of Officer in Charge Jose Faustino Jr., is reactivating the Mutual Consultation Board which will engage representatives of Russian firm Sovtechnoexport in further discussions regarding the project's termination.
"Following the letter of termination signed by former Secretary of National Defense Delfin N. Lorenzana, and serving of the formal notice from the Contract Termination and Review Committee, there had been an exchange of communications with Sovtechnoexport in accordance with the procedures under Republic Act No. 9184 ," DND spokesperson Arsenio Andolong said Tuesday, Oct. 25.
"This project is only a small part, and not the sum, of our bilateral relations with Russia. It is our hope that this episode will be concluded in an amicable manner for both parties," he added.
The DND spokesman said they will update the Russian Embassy with the details of the discussion with Sovtechnoexpert.
Last week, President Ferdinand Marcos Jr. said that the helicopter acquisition with Russia through Sovtechnoexpert will no longer push through and he picked the United States as the new supplier of helicopters for the Philippine Air Force (PAF).
This came after Russian envoy Marat Pavlov asked the government to honor the deal that materialized under the previous Duterte administration but was eventually cancelled at the last minute.
Signed in November 2020, the acquisition project sought to provide the PAF with 16 units of Soviet-designed medium twin-turbine transport helicopter as part of the revised modernization program of the Armed Forces of the Philippines (AFP).
But former DND Secretary and now Bases Conversion and Development Authority (BCDA) Chairperson Delfin Lorenzana had said he terminated the contract before former President Duterte stepped down in June upon the latter's order.
He had said the project was thrashed to shield the Philippines from possible negative effects of the United States' Countering America’s Adversaries Through Sanctions Act (CAATSA), a law which imposes sanctions on countries buying military and defense materials from countries hostile with US.
Conflict between Russia and United States, a long-time treaty ally of the Philippines, worsened when the latter expressed support to Ukraine after it was invaded by Moscow earlier this year.
To offset the P2-billion downpayment made by the Philippine government to Russia and help in financing the AFP modernization program, US Ambassador MaryKay Loss Carlson had said Washington will provide a US$100 million grant or more than P50 billion to Manila.