This week, the Prime Minister, Mark Carney, welcomed the President of Ukraine, Volodymyr Zelenskyy, to Canada to forge a new chapter in the Canada-Ukraine partnership. In Calgary, Prime Minister Carney announced the establishment of a national drone marketplace to accelerate Canada’s own production capabilities.
Scaling up Canada’s defence industry
Defence Drone Initiative Marketplace Supply Arrangement
Canada has successfully established the Defence Drone Initiative Marketplace (DDIM) Supply Arrangement. Modelled after Ukraine’s world-leading Brave1, this national drone marketplace will ensure the reliable, rapid, and continuous supply of drones for the Canadian Armed Forces and Coast Guard. It will connect operators and end-users to this Canadian defence ecosystem to accelerate the discovery, acquisition, and fielding of uncrewed and counter-uncrewed capabilities.
To date, nearly 400 vendors have qualified, and up to $50 million in initial contracts have been awarded to Canadian DDIM suppliers. This initial batch of contracts, focused on low-cost uncrewed aircraft systems (UAS) and complex terrain uncrewed ground vehicles (UGV), will introduce multiple new platforms to the Canadian Armed Forces (CAF) and increase its inventory tenfold. It will also strengthen Canada’s drone industrial ecosystem by positioning it to manufacture, at scale, these systems which are now vital in modern warfare. Another competition for uncrewed vehicles supporting maritime mine-countermeasure operations will be launched imminently, helping develop world-leading drone technology right here in Canada. Further requests for proposals will be published under the DDIM within the coming weeks and months – providing the CAF with the capabilities that it needs, while building a strong and dynamic drone industry to help Canada better support its partners, including Ukraine.
Following the completion of the evaluation process, including Foreign Ownership, Control and Influence (FOCI) assessments, Canada intends to proceed with contract awards to the following suppliers:
Uncrewed aircraft systems (UAS)
Vendor: AVSS
System: AVSS Drone D1
Locations: Fredericton, New Brunswick, and Carp, Ontario
The AVSS Drone D1 is a predominantly Canadian-made system. Manufacturing and assembly take place in Ontario. The majority of major components, software, electronics, sensors, and support systems are sourced from Canada, with limited content sourced from allied countries, including the United States, France, and the Netherlands.
Vendor: Volatus Aerospace
System: Huntsman X6
Location: Canadian operations
The Huntsman X6 is a United Kingdom (UK)-manufactured platform with Canadian support and sustainment. Volatus provides Canadian contract management, logistics, customer support, training, and lifecycle sustainment services, ensuring continuing Canadian economic and operational benefits.
Vendor: Draganfly
System: Astiia UAS
Location: Saskatoon, Saskatchewan
Draganfly is a Saskatchewan-based Canadian aerospace company with established Canadian engineering, manufacturing, integration, training, and sustainment capabilities. The proposed platform is based on proven Australian technology, with Canadian production under licence and manufacturing, integration, support, training, lifecycle sustainment, technology transfer, and ongoing product development taking place in Canada.
Vendor: Objexis AI
System: MAQ-C
Location: Oakville, Ontario
The MAQ-C is a Canadian-designed and Canadian-built platform, with Canadian-owned intellectual property, software, mission systems, flight-control architecture, ATAK integration, additive manufacturing, and system integration conducted in Canada. The majority of software, avionics, command-and-control systems, and integration work is performed domestically, with critical components sourced from Canada and allied nations.
Uncrewed ground vehicles (UGV)
Vendor: Twenty20 Insight Inc.
System: XRC RHINO
Location: Ottawa, Ontario
The XRC RHINO platform is designed and manufactured in the UK, with Canadian service delivery. Twenty20 Insight Inc. provides Canadian contract management, systems engineering, training, documentation, customer support, configuration management, and sustainment activities.
Vendor: Beonyx
System: VTSE-TC
Location: Saguenay, Québec
VTSE-TC is a Canadian-designed, Canadian-owned, and Canadian-manufactured system. Intellectual property, engineering, support, assembly, and manufacturing are conducted in Canada, primarily in Québec, representing a fully Canadian UGV solution.
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Deepening our long-standing partnership and reaffirming Canada’s support for Ukraine in the face of Russia’s ongoing war of aggression, Prime Minister Carney announced additional investments and initiatives in defence, humanitarian aid, energy infrastructure, and support for Ukraine’s ongoing security and economic resilience.
Military assistance
Support for participation in JUMPSTART
Partner: Joint Ukraine Multinational Program – Services, Training and Articles Rapid Timeline (JUMPSTART)
Funding: Approximately $350 million
The sustained delivery of air defence equipment remains critical to Ukraine’s ability to protect its people and critical infrastructure against Russia’s escalated aerial attacks. In response to this priority requirement, Canada, alongside its Allies, is providing funding to the United States’ JUMPSTART mechanism to help meet this operational need and keep Ukrainians safe.
Support for Ukrainian children
Supporting the return, rehabilitation, and reintegration of Ukrainian children forcibly transferred and unlawfully deported by Russia
Funding: Up to $4 million
This funding will support the work of organisations and government partners advancing the return and reintegration of Ukrainian children who have been forcibly transferred and unlawfully deported by Russia. Canada is helping Ukraine strengthen the systems that make return and reintegration possible: from tracing and verification, to return, rehabilitation, reintegration, and community-based services.
Supporting Ukraine’s State Reintegration Service
Partner: UNICEF
Funding: Additional $2 million, for a total of $12 million
This funding supports UNICEF’s work in Ukraine to pilot its State Reintegration Service project in 15 communities. This state service will help establish a nationally defined pathway for returned children, connecting them and their families with the services they need for rehabilitation and reintegration.
Rebuilding critical energy infrastructure
European Bank for Reconstruction and Development (EBRD) loan guarantee
Funding: Approximately $435 million
Canada is contributing an additional loan guarantee to the EBRD for Naftogaz, which will help Ukraine’s energy security including by financing winter gas purchases.
Contribution to the Ukraine Energy Support Fund
Funding: Additional $10 million for a total of $100 million
The Ukraine Energy Support Fund (UESF) is a multi-donor platform established in 2022 to counteract the impact of Russian attacks against critical energy infrastructure. Canada is contributing further funding to the UESF to procure and deliver energy equipment for restoring damaged critical energy infrastructure, maintain essential energy services, and strengthen Ukraine’s energy resilience.
Supporting the International Energy Agency (IEA) Joint Work Programme
Funding: $2 million
This funding will strengthen Ukraine’s energy resilience, provide regulatory support, and advance clean energy projects.
Deterring threats and promoting long-term social, economic, and security resilience
Multi-donor pooled initiative to support Ukraine’s veterans and their families
Funding: Up to $40.1 million
Canada and Ukraine are developing a multi-donor pooled initiative to support the implementation of Ukraine’s National Veteran Strategy, thereby providing support to Ukrainian veterans and their families. This initiative will further four broad areas of work: health, rehabilitation, and recovery; access to services and benefits; economic opportunity and livelihoods; and social inclusion and community participation for veterans and their families. Through this initiative, Canada will bring together governments, civil society organisations, and other stakeholders to foster coordination, share expertise and lessons learned as well as strengthen Ukraine’s long-term capacity to respond to the evolving needs of veterans. Canada and Ukraine are inviting interested partner countries to also contribute to this collective endeavour.
Investing in Ukraine’s long-term security and resilience to hybrid threats
Funding: $22,746,180
Canada is investing in Ukraine’s long-term security, stability, and resilience by supporting the capabilities of Ukraine’s security architecture to better detect, prevent, and respond to complex and hybrid threats. This funding includes support to increase national capacities to manage weapons, secure borders, and maintain stability in liberated territories. It will also help counter hybrid threats through investments in cybersecurity, critical infrastructure protection, and disinformation response. Thirdly, it will support civilian safety by strengthening coordination between security forces and frontline communities affected by Russia’s aggression.
Concessional financing envelope to support the reconstruction of Ukraine’s critical infrastructure
Funding: $200 million
Canada is dedicating $200 million of a $2 billion concessional financing envelope administered by Export Development Canada to support the reconstruction of Ukraine’s critical infrastructure. The Government of Canada intends for support under this allocation to be directed first toward a hydroelectric infrastructure opportunity in Ukraine that responds to urgent energy needs while contributing to the country’s reconstruction. The proposed support would allow Canadian expertise to contribute to technical planning and engineering work that could improve grid flexibility, support frequency regulation, and provide additional emergency reserves for Ukraine’s electricity system.