The Philippines has scrapped a 12.7 billion peso ($229 million) contract to buy 16 transport helicopters from Russia over fear of U.S. sanctions, the Associated Press reported on Wednesday, marking the latest in a series of canceled deals to hit Russia’s strategically important defense industry.
Former Defense Secretary Delfin Lorenzana was quoted as saying that Manila pulled out of the multiyear agreement involving 16 Mil Mi-17 helicopters last month in a decision that was approved by President Rodrigo Duterte before his six-year term ended on June 30.
“We could face sanctions,” Lorenzana told AP, describing ways Washington could express its “displeasure” if the Philippines proceeded with the deal – signed last November – given Washington’s worsening relationship with Moscow.