The Canadian government has quietly cancelled a contract to refurbish 25 armoured vehicles intended for Ukraine, but Defence Minister David McGuinty has refused to explain why. 
The deal, overseen by the Department of National Defence (DND) and managed through the Canadian Commercial Corporation (CCC), involved Armatec Survivability, an Ontario-based defence company. The project, first initiated nearly two years ago, was estimated to be worth up to $250 million and aimed to upgrade retired Canadian troop carriers for donation to Ukraine’s armed forces.
During a parliamentary committee session on October 20, 2025, McGuinty confirmed that “a decision has been made to cancel the contract with that company,” but stated that he could not discuss “the merits of it” nor provide details about the decision-making process. He suggested the matter was evolving between the department and the contractor.
Opposition MPs criticized the lack of transparency, especially given Ukraine’s continued need for armoured vehicles amid the war. Conservative MP James Bezan alleged that the government had imposed a “gag order” preventing Armatec from publicly commenting. Federal lobby records show that Armatec met repeatedly this year with senior Liberal officials, including McGuinty’s chief of staff and Industry Minister Mélanie Joly, underscoring the project’s previously active status .
Neither the DND nor CCC has explained why the contract was pulled. Both agencies cite commercial confidentiality obligations, and there is no public indication whether the cancellation was due to performance issues, political decisions, or procurement concerns .
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