The Defence Minister informed a parliamentary committee that the agreement to provide Ukraine with renovated light armored vehicles has been officially terminated. Nearly two years ago, the Department of National Defence granted 25 retired troop carriers to Armatec Survivability in Dorchester, Ont., for reconstruction.
The initiative, spearheaded by the defence department due to Canada’s struggle to supply Ukraine with weapons against Russia’s invasion, was managed by the Canadian Commercial Corporation (CCC). The contract negotiations, valued at up to $250 million, were included in the CCC’s quarterly report until recently when it was unexpectedly removed.
Defence Minister David McGuinty revealed during the committee session that the contract with the company had been canceled. Despite being pressed for details by the Opposition Conservatives, he refrained from elaborating on the decision, citing ongoing developments in the relationship between the department and the contractor.
Previously, CCC declined to disclose information on the Armatec deal citing commercial confidentiality obligations. McGuinty also declined to provide specifics on the cancellation rationale during the committee hearing, expressing limitations in divulging further details.
While Conservative defence critic James Bezan criticized the government for abandoning the deal at a time when Ukraine urgently requires armored vehicles, McGuinty pointed out that Canada has already supplied new armored combat support vehicles to Ukraine and continues to do so. The original plan, announced by then-Prime Minister Justin Trudeau two years ago during Ukraine President Volodymyr Zelenskyy’s visit, aimed to offer both new and refurbished troop carriers.
The fate of the refurbished vehicles intended for Ukraine remains uncertain, as Armatec had developed a demonstration vehicle for the project featuring enhanced weaponry and crew protection systems. The company’s promotional materials highlight an innovative yet proven restoration process utilized in the vehicle construction.