The Russian Defense Ministry has canceled plans to order improved Mi-28NM attack helicopters, according to Interfax news agency.

One possible aspect of canceled order of Mi-28NM is a relatively high price for the helicopter.

“Despite repeated attempts by the military to lower the price of a production aircraft, the Russian Helicopters company refused to accept the conditions of the Ministry of Defense,” one of the agency’s source said.

According to him, for more than three months, the Russian Defense Ministry was preparing to conclude a state contract with the Russian Helicopters company to supply the production batch of Mi-28NM attack helicopters, but at the last moment, the parties could not reach an agreement on the contract cost.

In turn, a source in the Russian Air and Space Forces told Interfax that the canceled to order the Mi-28NM would not affect the combat capability of army aviation. “At the moment, the development work on the modernization of the previously delivered Mi-28 helicopters is successfully completed,” he said.

The Russian Helicopters company did not provide any comment on this.

The Mi-28NM is an improved version of the Mi-28N Night Hunter attack helicopter. Work on the new version was kicked off in 2009. The Mi-28NM is a comprehensive redesign was expected to serve as Russia’s flagship attack helicopter for the foreseeable future.

The helicopter is designated to strike the armor, carry out reconnaissance and provide target acquisition. It is equipped with totally new radar with a new plan-position indicator, a new operating system and other systems, as well as use precision-guided munition.