Philippines May Get Russian Small Arms as Mi-17 Deal Refund: Sources

The Philippines has opened parleys with Russia to secure probable small arms worth an estimated $38.5 million, being the amount of refund it is seeking from Moscow for canceling a deal to buy 16 Mi-17 helicopters.

Sources familiar with the development told defensemirror.com that the substitute that Mosow would offer could be small arms. “This part is not yet decided but likely. But one thing is certain that Russia will not return the advance paid as Manila has unilaterally canceled the Mi-17 acquisition.”

A clause in the agreement specifically states that the advance paid will not be refunded if the deal is canceled by the buying party (Philippines).

Still, Manila has canceled the contract ostensibly under pressure from the United States which has held out the threat of sanctions if it proceeds with the deal, the source said.

U.S. offers Chinook Helicopters to Philippines at a special (low) price.

In return, the US has offered Boeing-made Chinook heavy-lift helicopters. Philippine Ambassador to the United States Jose Manuel Romualdez was quoted as saying by the Philippines News Agency that the cancellation of the contract “is precipitated mainly by the war in Ukraine.”

I understand the United States has offered to try to come up with a similar amount that we were going to spend with the Russian helicopters. In other words, at a special price,” he said.

Romualdez also said “As part of the payment of about US$38 million that we paid the down-payment for the helicopters,” he added. “So, in exchange for that, we will probably get some of the arms that we may need.”

America supplies Mi-17s to Ukraine

Ironically, the U.S. has supplied Mi-17 helicopters, earlier purchased from Russia for use in Afghanistan, to Ukraine. The Soviet-era, heavily modernized choppers are considered the favorite choice of helicopter operators wanting a heavy-lift chopper that requires low maintenance and offers extreme reliability. In comparison, the Chinooks require higher maintenance.