The Philippines Turns to the U.S. Alliance After Canceling the Mi-17 Helicopters Deal with Russia

Philippines flag (Wikimedia)

After six years of nurturing cordial ties with Russia and other non-traditional partners in the region, the Philippines reversed its course back to its century-old alliance with the United States on October 20. President Ferdinand Marcos Jr. officially approved his predecessor’s cancellation of a deal to purchase 16 Mi-17 military helicopters from Russia and expects to fulfill the order with U.S. military helicopters.

Former President Rodrigo Duterte, who curried close ties with Putin, signed the deal to buy the Mi-17 helicopters from Russia in November 2021, with a down payment on a shipment made in January of this year. However, in the final weeks of his term, Duterte decided to cancel the 12.7-billion-peso ($227 million) contract. “I think it was really prudent especially for President Duterte to approve the cancellation of that contract because it can save us a lot of trouble,” said the Philippine Ambassador to the United States Jose Romualdez at an online news conference.

He told reporters that the sudden decision to cancel the deal was triggered by the growing western sanctions in the Russian-Ukraine War and a 2017 U.S. law that sanctions anyone doing business with Russia’s intelligence or defense sectors. Romualdez also expressed  fear that the sanctions might hinder the transfer of remittances from Filipino workers abroad which constituted 9.6% of the country’s GDP in 2020. 

President Marco told reporters, “I think it has already been determined by the previous administration that the deal will not carry through…now we have secured an alternative supply from the United States.” According to Ambassador Romualdez, a U.S. offer to sell Boeing CH-47 Chinooks was a possible substitution. President Marco also when speaking about the original down payment shared his hope to “negotiate [with Russia] to get at least a percentage of that back.”  

Russian Ambassador to the Philippines Marat Pavlov reportedly claimed that he had not been officially informed of the contract’s cancellation and asked the Philippines to “honor the deal.”  In response, the Philippine Department of National Defense in Manila replied that a formal notice was sent to Russian aircraft manufacturer Sovtechnoexport in June. The department has also convened a committee to finalize the details of the country’s withdrawal from the contract. 

During former President Rodrigo Duterte’s six-year administration, the Philippines shifted its strategic policy away from a U.S.-centric calculus and diversified relations with China and Russia. While Russia remains a crucial economic partner, the Marco administration has signaled a reversal to traditional strategic relations with the United States.