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Canada Kills $178 Million Vehicle Deal Ukraine Tank Refurbishment Plan After Lengthy Delay
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Canada has scrapped a long-delayed plan to refurbish and send armored vehicles to Ukraine, abruptly terminating its contract with Ontario-based defense firm Armatec Survivability, Defense Minister David McGuinty told lawmakers, according to CBC on October 21.
Nearly two years ago, the Department of National Defence transferred 25 decommissioned light armored vehicles (LAVs) to Armatec for restoration as part of Ottawa’s effort to supply Ukraine with additional combat equipment amid Russia’s full-scale invasion.
The deal, brokered through the Canadian Commercial Corporation (CCC), was initially valued at up to 250 million Canadian dollars ($178 million) and listed in official government reports until it was quietly dropped earlier this summer.
“There is a decision that’s been taken to nullify the contract with that company presently,” McGuinty said during a parliamentary committee hearing.
“I can’t go any further in terms of discussing the merits. We’ll see how that evolves in terms of the relationship with the department and contractor.”
The Defense Minister declined to provide reasons for the cancellation, citing confidentiality. “I wish I could give you more insight into the reasoning behind the department’s decision to cancel the contract, but I’m not in a position to do so,” he added.
Opposition lawmakers sharply criticized the move. Conservative defense critic James Bezan said the government was “walking away” from a deal that could have delivered much-needed armored vehicles to Ukraine at a critical time.
The plan, originally unveiled by former Prime Minister Justin Trudeau in coordination with President Volodymyr Zelenskyy’s visit to Ottawa, envisioned sending both new and rebuilt vehicles to bolster Ukraine’s forces. So far, Kyiv has only received newly built armored support vehicles from Canada.
Armatec had already built a prototype for the project—a refurbished vehicle featuring an upgraded cannon and a remotely operated weapons module designed to improve crew safety.
The company had also proposed adapting surplus LAV II Bison and Coyote reconnaissance vehicles for various battlefield roles, including infantry transport, medical evacuation, and logistical support.
It remains unclear whether the federal government plans to reclaim the vehicles initially handed over to Armatec. The CCC has refused to comment, citing “commercial confidentiality obligations.”
According to earlier reports, the Canadian Armed Forces planned to retire nearly 350 Bison and Coyote vehicles. Armatec had pitched the refurbishment project as a cost-effective way to repurpose these aging assets while supporting Ukraine’s defense needs.
Earlier, during the 28th meeting of the Ukraine Defense Contact Group (UDCG) in Brussels, Canadian Minister of National Defence David J. McGuinty announced over $35 million in new military assistance for Ukraine, further reinforcing Canada’s long-standing commitment to Ukraine’s defense against Russia’s war of aggression.
The latest package includes $30 million dedicated to the provision of Bison and Coyote armored vehicles, alongside additional equipment and ammunition sourced from Canadian defense contractors. This new aid follows the December 2024 delivery of 64 Coyote armored vehicles to Ukrainian forces.
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