Canada has officially terminated its agreement with Armatec Survivability, a company that was supposed to refurbish decommissioned armored vehicles for transfer to Ukraine. The announcement was made by Defense Minister David McGuinty, as reported by CBC.
Source: Pryamyi
About two years ago, the Department of National Defence handed over 25 old armored vehicles to the company for modernization. The project, valued at up to $250 million, was intended to strengthen Ukraine’s Defense Forces amid the ongoing war with Russia.
“A decision has been made to cancel the contract with the company. I will not comment on the details yet — we’ll see how the relationship between the department and the contractor develops further,” McGuinty stated.
Armatec had even created a demonstration prototype of the armored vehicle equipped with an enhanced gun and a remote-controlled combat module, but the project was suspended without explanation. Deliveries were effectively limited to a few new units, while the refurbished vehicles never reached Ukraine.
Analysts note that Ottawa’s decision casts doubt on future agreements regarding the supply of combat vehicles and highlights the challenges of cooperation between government agencies and private contractors in large defense projects.