Peru and Ukraine disagree over delivery of An-178 airlifter

South American nation has ordered the Antonov aircraft that is not yet ready, but Ukrainians say they have not received any amount under the $64 million contract

In a serious financial situation, Antonov currently has only one customer outside Ukraine, the Peruvian National Police, which ordered a single An-178 military transport aircraft in 2019.

But even that contract is in danger of being terminated. According to the Peruvian government’s comptroller, the agreement between the country’s Ministry of Interior and Spetstechnoexport, Ukrainian export company, could result in a loss of $64 million.

The agreement provided for the delivery of the jet at the end of this year, but Antonov has not yet completed its assembly on time. As a result, the contract would have expired, forcing the parties to renegotiate its terms.

On December 21, however, Spetstechnoexport released a statement contesting the Peruvian allegations. According to the Ukrainian state-owned company, the Peruvian government has so far not made any payment for the contract.

The first series production An-178 orderder by Peru government (Antonov)

“As of today, the contract is valid, but due to the lack of funding from the customer – the Ministry of Internal Affairs of the Republic of Peru – is being implemented with a delay. At the same time, the solution of the financing problem does not depend on the Ukrainian side. The mentioned issue is connected with the non-acceptance of the bank guarantee by the state and private banks of Peru, including the guarantee provided by a first-class European bank, included in the list of banks of The first category, approved by the Central Reserve Bank of Peru. This very reason is a complicating circumstance that significantly alters the balance of contractual obligations,” said Spetstechnoexport.

Also according to the company, the production of the only An-178 is being carried out at Spetstechnoexport’s expense. In 2020, Antonov even released images of the aircraft on the assembly line in Kiev.

The AN-178 is a twin-engine jet capable of carrying 18 tonnes of cargo over distances of up to 5,500 km at a speed of 825 km/h. In addition to Peru, the Ukrainian government ordered three aircraft last year.