The contract for supplying Ukraine with renovated light armored vehicles has been officially terminated, as confirmed by the defense minister during a House of Commons committee session. The Department of National Defence had provided 25 retired troop carriers to Armatec Survivability in Dorchester, Ont., nearly two years ago for refurbishment.
The initiative, which is no longer active, was initiated by the defense department to aid Ukraine in repelling Russia’s large-scale invasion by providing weapons and equipment. The Canadian Commercial Corporation (CCC), responsible for facilitating defense contracts, was tasked with negotiating the agreement valued at up to $250 million. The project was included in the agency’s quarterly report until it was unexpectedly removed earlier this summer.
Until recently, details regarding the status of the contract were undisclosed by both the defense department and CCC. Defense Minister David McGuinty disclosed during the committee meeting that the decision had been made to cancel the contract with the company involved, without elaborating on the reasons or specifics of the termination.
In response to inquiries about the Armatec deal, CCC cited commercial confidentiality obligations for refraining from providing information. McGuinty, addressing the committee, declined to reveal the rationale behind the cancellation, stating his inability to do so at the moment.
While Conservative defense critic James Bezan criticized the government for backing out of the deal while Ukraine urgently requires armored vehicles to replace losses on the battlefield, McGuinty emphasized Canada’s ongoing provision of new armored combat support vehicles to Ukraine. Initially, the plan was to supply Ukraine with both new and refurbished troop carriers, an announcement made by former Prime Minister Justin Trudeau during the visit of Ukrainian President Volodymyr Zelenskyy to Ottawa two years ago.
The government’s intentions regarding the recovery of the vehicles intended for refurbishment remain unclear. Armatec had developed a demonstration vehicle for the Ukraine project, equipped with an enhanced cannon and a remote weapons station for crew protection, showcasing the company’s innovative yet proven restoration process.