The Defence Minister confirmed to a parliamentary committee that the contract to supply Ukraine with refurbished light armoured vehicles has been terminated. Approximately two years ago, the Department of National Defence transferred 25 retired troop carriers to Armatec Survivability in Dorchester, Ont., for reconstruction. The initiative, initiated by the defence department amid challenges in providing Ukraine with weapons to counter Russia’s invasion, was overseen by the Canadian Commercial Corporation (CCC). The contract, valued at up to $250 million, was included in the CCC’s quarterly report until recently, when it was removed without explanation.
When pressed by Opposition Conservatives, Defence Minister David McGuinty disclosed that the contract with the company had been terminated. However, he refrained from providing further details on the decision or the relationship with the contractor. Previously, CCC declined to comment on the Armatec deal citing commercial confidentiality obligations.
During his appearance before the committee, McGuinty declined to elaborate on the reasons for cancelling the contract, stating his inability to do so. The government’s decision to cancel the deal was criticized by Conservative defence critic James Bezan, who highlighted Ukraine’s urgent need for armoured vehicles. In response, McGuinty mentioned Canada’s provision of new armoured combat support vehicles to Ukraine.
The original plan involved Canada supplying both new and refurbished troop carriers, announced by former Prime Minister Justin Trudeau during Ukrainian President Volodymyr Zelenskyy’s visit to Ottawa. It remains uncertain whether the federal government will seek the return of the vehicles earmarked for refurbishment. Armatec had designed a demonstration vehicle for the Ukrainian project, equipped with an enhanced cannon and a remote weapons station for crew protection, showcasing its innovative restoration process.
