Indonesia has finalized a billion-dollar deal pertaining to the purchase of 11 Sukhoi Su-35 jets from Russia.
According to Indonesian Defense Ministry spokesman Totok Sugiharto on Saturday, the contract, worth a total $1.14 billion, was finalized by representatives from both countries in Jakarta.
“Two units of Sukhoi jets will be delivered in August 2018,” he added, noting that six more planes would be delivered 18 months after the contract becomes effective, and the remaining three would be delivered five months after that.
Indonesia and Russia entered into a memorandum of understanding over the exchange 11 Russian-made Sukhoi jets for key commodities, such as palm oil, coffee and tea, in August last year, in what Indonesia said was an opportunity to capitalize on international sanctions on Moscow.
Moscow is set to sell Jakarta nearly a dozen Sukhoi fighter jets in exchange for cash and commodities, Indonesian officials say.
The Saturday announcement refrained from mentioning the deal’s manner of payment.
A host of sanctions have been imposed against Russia over 2014 annexation of Crimea from Ukraine. Crimea declared independence from Ukraine on March 17, 2014 and formally applied to become part of Russia following a referendum, in which the majority of people voted to separate from Ukraine and reunite with Russia.
The EU and the US, however, considers the development as an “illegal annexation” and has imposed a raft of economic sanctions on Russia. Russia, however, has categorically denied the allegations that it is responsible for the Ukrainian conflict.