Canada has officially terminated a contract to supply Ukraine with renovated light armoured vehicles, as disclosed by the defense minister during a House of Commons committee session. The Department of National Defence had handed over 25 retired troop carriers to Armatec Survivability in Dorchester, Ont., nearly two years ago for refurbishment. This initiative, which is now defunct, was initiated by the defense department to assist Ukraine in countering Russia’s invasion.
The Canadian Commercial Corporation (CCC), responsible for mediating defense contracts, was tasked with negotiating the terms of the agreement, valued at up to $250 million. The contract was highlighted in the agency’s quarterly report until recently, when it was unexpectedly removed. Up until this announcement, neither the defense department nor CCC had provided details on the contract’s status.
Defense Minister David McGuinty confirmed the cancellation of the contract with the company during the committee meeting, citing the decision without delving into specifics due to ongoing developments between the department and the contractor. Previous inquiries regarding the Armatec deal were met with silence from CCC, citing commercial confidentiality obligations.
McGuinty declined to elaborate on the reasons behind the contract termination during his committee appearance, stating that he could not disclose further details. In response to concerns raised by Conservative defense critic James Bezan about Ukraine’s urgent need for armoured vehicles, McGuinty pointed out that Canada had already supplied new armoured combat support vehicles to Ukraine and continues to do so.
While the initial plan aimed to provide both new and refurbished troop carriers, current arrangements involve only new vehicles being supplied. The government’s intentions regarding the recovery of the decommissioned vehicles earmarked for refurbishment remain unclear. Armatec had developed a prototype vehicle for the Ukrainian project, featuring enhanced weaponry and crew protection systems, employing what the company describes as an innovative yet proven restoration process.