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Gov't Scraps Russia Helicopter Deal For Fear Of US Sanctions
AP reporting that the Philippines gov't has scrapped a deal with Moscow for the provision of 16 military transport helicopters for fear of invoking US sanctions. The deal was made under the administration of former President Rodrigo Duterte, but former Defense Secretary Delfin Lorenzana stated late on Tuesday that “We could face sanctions,” if the deal went ahead.
- Lorenzana remains in a gov't position, having been appointed by new President Ferdinand 'Bongbong' Marcos Jr. to head up an agency transforming former military bases into business parks.
- Under the Duterte gov't, the Philippines trod a fine line between closer ties to Russia and the US. Duterte was a close friend of Russian President Vladimir Putin, but Manila remained and still is a treaty ally of the United States.
- Scrapping the deal could be a sign that the Marcos Jr gov't could be more inclined to maintain close links with the US. However, Marcos Jr is also seen as wanting to improve ties with Beijing, which would prove another security concern for Washington, D.C. As such, the US' concerns with the Philippines could move from one of Manila being within Moscow's sphere of influence to being within Beijing's.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.