Peru ministers quit over stalled $3.5bn US jet deal

April 23, 2026 / 2:50 PM

Sharjah24-AFP: Foreign and defence ministers in Peru resigned on Wednesday in protest against interim President Jose Maria Balcazar’s decision to halt a $3.5 billion agreement to purchase 24 F-16 fighter jets from Lockheed Martin.

The ministers said the deal had already been signed and warned that casting doubt on it could damage Peru’s credibility as a trading partner. Despite the suspension, the Ministry of Economy confirmed that an initial $462 million payment had been transferred.

Political tensions deepen instability

The controversy has deepened political instability in Peru, where a recent election failed to produce a clear winner. A runoff is scheduled for June 7 as the country seeks to elect its ninth president in a decade.

US warning and diplomatic concerns

Bernardo Navarro issued a warning about potential consequences if US interests are undermined. Meanwhile, Balcazar said he is “not seeking confrontation” and wants to ensure public funds are used responsibly.

Ministers defend national security

Foreign Minister Hugo de Zela said the decision undermines national credibility, while Defence Minister Carlos Diaz stressed that the jets are essential to national security and not a political matter.

The defence deal has become entangled in an election marred by delays, allegations of fraud and logistical issues. Candidates, including Keiko Fujimori, remain central to the race, with a second-round opponent yet to be confirmed.

Peru had planned to modernise its ageing air fleet, which includes Mirage 2000, MiG-29 and Sukhoi aircraft, many of which are no longer operational.