The implementation of the contract for the supply of 11 Su-35 fighter jets to Indonesia has been postponed, reported the newspaper Kommersant, referring to two top managers of Russian defense companies and a source close to the government.
“The contract for the supply of 11 Su-35 fighter jets retains its legal force, but its implementation will be delayed,” the newspaper writes.
According to Kommersant, the first jet was expected to arrive in October, but the US did not give Indonesia guarantees that it would not come under the restrictive measures because of this contract.
“The Russian side also has difficulties. When implementing the contract, it was planned to use a credit line which was expected to be provided by a commercial bank. This could lead to grave consequences for the bank since the US will consider this loan as cooperation with Rosoboronexport (Russia’s arms exporter) and would impose sanctions against the bank,” Kommersant reported.
“The situation is unpleasant but not critical. We are in constant contact with our Indonesian partners and are looking for ways out this situation,” the newspaper quoted the statement of a source.
In mid-September, the Head of Indonesian Public Communication Center of Ministry of Defense Brigadier General Totok Sugiarto said that the Indonesian Air Forces hoped to receive the first two multi-purpose Su-35 fighters in 2019.
According to him, the delivery would be done in three batches consisting of two, four and five jets.
Indonesian Defense Minister Ryamizard Ryacudu stated that 50% of the contract value would be paid off by shipment of traditional export goods from Indonesia.
The contract for the supply of 11 Su-35 fighter jets to Indonesia was signed in February 2018. According to unofficial data, its cost is more than $ 1 billion. It was reported that Indonesia would receive a commercial loan from Russia for the purchase of fighters.