18:31 GMT +320 October 2018
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    The Su-35 fighter performing on Air Force Day in Russia's Lipetsk. File photo

    Deliveries of Russian Su-35 to Indonesia Might Fall Under US Sanctions - Reports

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    MOSCOW (Sputnik) – The time frames for the deliveries of Russian Su-35 multi-role fighter jets to Indonesia under a bilateral contract are affected by the restrictions that the United States is ready to introduce as part of its anti-Russia sanctions, as the Kommersant newspaper reported on Friday.

    Washington had not given its guarantees to Jakarta that Indonesia would not face sanctions under the US Countering America's Adversaries Through Sanctions Act (CAATSA), which targets, among other things, Russia’s international transactions, the Kommersant newspaper reported, citing two Russian defense industry top managers and a source close to the presidential administration.

    Moreover, the parties planned to use a loan from a Russian commercial bank as part of the contract. However, no banks were willing to engage in the deal since they might face US sanctions over cooperation with Russian military exporter Rosoboronexport, the outlet added.

    "The situation is unpleasant but it is not critical. We maintain constant contacts with our Indonesian partners, we are looking for ways out of the situation," one of the newspaper’s interlocutors said.

    READ MORE: Russia Backs Indonesia's Interest in Creating Free Trade Zone With EAEU — Lavrov

    The US authorities have been looking into the possibility of introducing a sanctions waiver to allow certain countries, having ties with Russia, purchase Russian military equipment. Particularly, US Defense Secretary James Mattis asked the congressmen in August to introduce this waiver in relation to India, Indonesia and Vietnam.

    In August, Indonesian Ambassador to Russia Mohamad Wahid Supriyadi told Sputnik that Jakarta expected to receive the first Russian Su-35 Flanker-E fighter jet under the bilateral contract in October. However, the diplomat noted in a comment to Sputnik in September that Indonesia expected the first jet to be delivered in October 2019.

    In June, the ambassador said that Indonesia had signed a contract with Russia to purchase 11 new Sukhoi aircraft, calling the deal "very large."

    According to the Indonesian Trade Ministry, the contract is worth $1,154 billion and stipulates that Russia will purchase Indonesian goods worth $570 billion under it.

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    Tags:
    trade, sanctions, Su-35, CAATSA, Indonesia, Washington, United States
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