The Philippines Department of National Defense (ONO) is formalizing the termination of a contract with SOVTECHNOEXPORT LLC of the Russian Federation for the procurement of 16 units of Mi-17 heavy-lift helicopters for the Philippine Air Force.
"We have reconstituted the ONO Contract Termination and Review Committee (CTRC) that will undertake the appropriate processes and exercise due diligence in formalizing the termination of the project's contract," ONO statement said Wednesday
"We are also preparing to initiate a diplomatic dialogue with the Russian side regarding matters arising from the project's cancellation," the statement added.
The reason for the contract termination has not been revealed.
Countries in South East Asia have been threatened with sanctions by the U.S. if the purchased Russian military equipment.
Earlier this year, The Philippines purchased ATAK helicopters from Turkey.