FILE PHOTO: President Ferdinand Marcos Jr.
President Marcos will not reverse the decision of the Duterte administration to cancel the Philippine government鈥檚 P12.7-billion deal with Russia to purchase 16 military heavy-lift helicopters.
Speaking to reporters after attending a business event in Manila on Thursday, the President said the previous administration had already determined that 鈥渢he deal will not carry through, will not go on.鈥�
鈥淲e have secured an alternative new supply from the United States through the manufacturer Poland,鈥� Mr. Marcos told reporters. 鈥淚n any case, there is already a replacement,鈥� he said.
Unfortunate development
According to him, it was 鈥渦nfortunate鈥� that the Philippines had already made a down payment for the helicopters, but he said 鈥渨e are hoping to negotiate to get at least a percentage of that back.鈥�
鈥淭he deal, as it stood may be at the beginning or in the middle of last year, has already been canceled and we have secured another alternative supply for those helicopters that we need,鈥� he said.
But the Philippines has yet to formally inform the Russian government of its decision to terminate their contract, according to Russian Ambassador Marat Pavlov.
鈥淥fficially speaking, the embassy didn鈥檛 receive any official communication through the very known channel, for example the diplomatic note. We didn鈥檛 receive any note on this very important issue. We are waiting,鈥� Pavlov told reporters in an interview at his residence in Makati City on Wednesday.
Down payment spent
According to him, the Russian government still considers the contract 鈥渧alid.鈥�
鈥淚鈥檇 like to affirm that the Russian side is continuing to fulfill all obligations regarding this contract,鈥� he said.
Pavlov added that the production of helicopters is ongoing using the P1.9-billion down payment deposited by the Philippines in January.
鈥淭he down payment was made for the start of the assembly operation, so we continue to assemble. Because we received the amount of the money therefore we鈥檙e fulfilling all the contractual obligation,鈥� he said.
Notices served, but pending
He added that they did not make any step even upon hearing about Manila鈥檚 decision to cancel the deal, stressing that they were still waiting for the official declaration.
The Department of National Defense, however, said it has notified the Russian government of its intent to cancel their contract but the deal has yet to be officially terminated.
Defense spokesperson Director Arsenio Andolong told reporters on Thursday that the formal notice was served in June and September.
Former Defense Secretary Delfin Lorenzana said in July that he had canceled the deal in June before the Duterte administration ended on June 30, out of concerns of possible economic sanctions from the United States due to its conflict with Russia over its war on Ukraine.
鈥淭here were communication exchanges between the two parties, but there is no progress yet because we are waiting for their response on certain issues 鈥� This is part of the process of termination,鈥� Andolong said. Both parties have yet to meet in person.
$100-M facility from US
Acting Defense Secretary Jose Faustino Jr. said in late September that they have been facing difficulties to refund the P1.9-billion down payment made in January but they are exerting efforts through diplomatic channels.
US ambassador MaryKay Carlson, for her part, on Monday said they were grateful to the Philippine government鈥檚 decision to cancel the deal 鈥渆specially in the wake of Russia鈥檚 illegal attack of unprovoked war in Ukraine.鈥�
She said the state department has proposed allocating $100 million in foreign military financing for the Philippines next year, more than twice the $40-million financing it provided to the Philippines in 2022. This can be used to offset the canceled helicopter purchase, she said, although they 鈥渨ould not dictate the modernization efforts within the Department of National Defense.鈥�
READ: Scrapped chopper deal: Bye to P2 billion?