ISLAMABAD: Italian Company M/s Leonardo, Helicopter Division (LHD) and Islamabad have agreed to insert new clause “no-ex-export to Russia” in the Basic Ordering Agreement (BOA) meant to repair/ maintenance of helicopters, well informed sources told Business Recorder.
Sharing the details, sources said that the Federal Cabinet was apprised on February 12, 2025 that the Cabinet Division maintained a fleet of helicopters through 6-Aviation Squadron with a mandate to undertake relief and rescue operations, as well as, VVIP missions.
The fleet includes six AW-139 helicopters procured from M/s Leonardo, Helicopter Division (LHD) Italy. It was further noted that in order to keep the helicopters airworthy, a Basic Ordering Agreement (BOA) between the Government of Pakistan (GoP), Cabinet Division (the Buyer) and M/s Leonardo, being the Original Equipment Manufacturer (OEM) (the Seller) had been signed in the year 2011, which was extended from time to time and was valid up to June 14, 2025.
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It was informed that M/s Leonardo, with a view to receiving payments without delay, had urged to revise the Basic Ordering Agreement by rewording/ eradicating certain clauses.
Accordingly, a mutually agreed amendment, ensuring benefits to both parties, was shared with M/s Leonardo. In accordance with the European Union’s policy, the OEM had requested the inclusion of a new clause 14.5; i.e., “no re-export to Russia” in the Agreement.
The Cabinet was further apprised that the Ministry of Foreign Affairs was consulted for their comments on the matter before signing the new agreement, and that Ministry of Foreign Affairs had communicated it’s no objection to incorporate the clause from political point of view, as intimated in its letter of December 18, 2024.
Similarly, on the directions of the Prime Minister’s office, the International Dispute Unit (IDU), Office of the Attorney General for Pakistan, had also been consulted through the Ministry of Law and Justice, and the IDU had also conveyed its “no objection” for insertion of new clause in question.
It was informed that the Prime Minister had directed the Cabinet Division that approval of the Federal Cabinet be obtained by the Cabinet Division to incorporate the new clause 14.5 “no re-export to Russia” in the revised Basic Ordering Agreement as requested by M/s Leonardo Italy.
After brief discussion, the Federal Cabinet accorded approval to incorporate the new clause in the Basic Ordering Agreement as Amendment No.2.
Copyright Business Recorder, 2025
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