The Department of National Defense (DND) said Wednesday it is formally terminating the contract to buy Russian Mi-17 heavy-lift helicopters for the Philippine Air Force.

"The Department of National Defense (DND) is formalizing the termination of the 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," Arsenio Andolong, DND spokesman, said.

"We have reconstituted the DND 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," he added.

Andolong said the DND is "also preparing to initiate a diplomatic dialogue with the Russian side regarding matters arising from the project’s cancellation".

"Changes in priorities necessitated by global political developments resulted in the cancellation of the project by the previous administration," he said.

"The CTRC will undertake the appropriate processes in the contract termination and will exercise due diligence in the bilateral dialogue that will be conducted in connection with the cancellation of the project. This includes the issue on the down payment... (which) was P1.9 billion," he added.

Former Defense Secretary Delfin Lorenzana previously said the contract for the acquisition of the MI-17 heavy lift helicopters amounting to P 12.797 billion contract was signed and a down payment was made before the Ukraine crisis happened in February 24. Robina Asido/DMS