The world’s top arms superpower, the Russian Federation has formally offered the Philippines under Pres. Rody Duterte some military hardwared which is too beneficial to refuse. The Russians presented Improved Kilo Class submarine, Squadron of SU-30 Fighter Jets and also Missile Defense batteries.
Based on a trusted source from Malacanang the military hardware is going to be financed by loan grant around US$2 billion from the Russian government. If all are taken by the Duterte admin, that is definitely P110 billion-off to the P300 billion revised AFP Modernization Program second horizon budget.
According to the government’s modernization plan, the acuisition of submarines was initially planned for the 3rd horizon (2023-2028). However, the present Navy Chief, Vice Admiral Robert Empedrad, lobbied for the quick inclusion of diesel-electric submarines in Horizon Two.
Russian state-run Rosoboronexport been to the Asian Defense, Security and Crisis Management Exhibition and Conference, ADAS 2018 in Manila Philippines last September 28 exhibiting for the Philippine Air Force Su-35 and Su-30SME super-maneuverable multifunctional fighters, the Yak-130 training and combat training aircraft, the Mi-35M transport/combat helicopter, Ka-226T light multi-purpose helicopter as well as the Mi-171Sh military transport helicopter, Pantsir-S1anti-aircraft missile/gun system along with the Igla-S MANPADS.
It additionally displayed small arms like the AK-100 family of Kalashnikov assault rifles and armored vehicles, such as, the BMP-3 infantry fighting vehicle and also BT-3F armored personnel carrier for the Philippine Army. While for the Navy, the Project 636 large diesel-electric submarine, Gepard-3.9 class frigate and also boats for several purposes are on display at the Company’s stand.
Russia stated they are focusing on workable payment schemes with the Philippines to pay for the products which they plan to order as its State-run company is avoided from using US dollars under Section 231 of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA).
CAATSA provides prohibition upon foreign exchange transactions under U. S. jurisdiction and also transactions with the U. S. financial system.
Rosoboronexport General Director Alexander Mikheyev who met with President Duterte verified the restriction and stated the company would concentrate on conducting transactions in the currency of a customer rather than US dollars.
Mikheyev stated it had examined a number of methods to work around US sanctions against the company and was now looking at the possibilities of working in non-US currencies.
Source: PNA / Philippine Defense Forum