Canada Cancels Deal To Supply Armored Vehicles To Ukraine, Defense Minister Refuses To Give Reason

The matter came to light during a meeting of Parliament’s **National Defence Committee**, where the Defence Minister was questioned on Canada’s defence spending, NATO goals and Ukraine assistance programs. James Bezan, the deputy chairman of the committee and the Conservative Party’s defence critic, said that a contract was signed with Armatec Survivability, a company based in Dorchester, Ontario, to repair and deliver 25 armoured vehicles, but the vehicles have not yet been sent to Ukraine and the contract has been “suspended or cancelled.” Defence Minister McGinty responded by saying, “At this time, the decision has been made to terminate the contract with this company, so I cannot go into the details of this matter. We will see how this matter progresses between the department and the company.”
Bizan questioned why Canada was canceling a deal that was important not only to help Ukraine but also to protect Canadian jobs, when major Ukrainian defense equipment had been destroyed in Russian attacks. McGinty said he wanted to shed light on the reasons for the decision, but “that is not possible at this time.” According to news sources, attempts were made to contact Armatec representatives on the matter, but they did not comment. Bizan claims that the government has placed a “gag order” on the company to prevent it from disclosing details of the deal.
According to government records, Armatec officials have held more than 30 meetings with government officials and senior Liberal ministers this year, the last of which was with the defense minister’s chief of staff in September. Industry Minister Mélanie Joly also met with company representatives in June. The deal has never been publicly announced by the government, so its value or signing date is unclear.
However, under a separate $650 million contract, General Dynamics Land Systems-Canada (GDLS), based in London, Ontario, is building 50 new armored vehicles for Ukraine. The first of these arrived in Europe in June this year, with the rest expected to be delivered by the end of the year.
The defense minister said the government remains committed to Ukraine’s defense. Prime Minister Mark Carney has already announced that another $2 billion in military aid will be provided to Ukraine this year, including $835 million for armored vehicles and other equipment. McGinty said > “Canada and NATO stand with our Ukrainian allies, who are fighting a difficult but brave war.” The defense minister added that the government is prioritizing the use of **Canadian steel, aluminum and wood** to strengthen the country’s defense industry, especially those products that have been affected by the tariffs imposed by U.S. President Trump.
He said that the F-35 fighter jet contract** with the United States is also under review to strengthen cooperation between the two countries under NORAD (North American Reconnaissance Agreement).
Canada is struggling to meet its NATO spending targets. According to McGinty, the country will spend 5 percent of its gross domestic product (GDP) on defense over the next few years, with 3.5 percent going to purely military needs and the rest on infrastructure and training.
He said that maintaining security and sovereignty in the Arctic is a top priority for Canada, where the United States and other NATO countries want Canada to take on more responsibility. In addition, Canada’s defense policy also includes improving the salaries and housing of military personnel. According to the latest report by the Auditor General, the condition of residential buildings on military bases is very poor. To this, McGinty said that the government is taking active steps to improve this situation. “I have been to these accommodations myself, I have seen the kitchens, I have seen the freezers, I have talked to the staff — we still have a lot of work to do.”