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Canada delays investments in increasing ammunition production

Canada delays investments in increasing ammunition production Canada is delaying investments in expanding ammunition production (photo: Getty Images)

Canada is delaying investments in increasing ammunition production, citing a lack of economic benefit in the medium term, according to CBC News.

According to CBC News, the Canadian government has not yet reached agreements with its arms manufacturers to increase the production of 155mm projectiles.

It is noted that in the fall of 2022, two large Canadian ammunition manufacturers proposed a significant increase in artillery shell production to the government. Almost a year and a half later - with Canadian stockpiles drained by donations to dangerously low levels, and with Ukraine running out of ammo - a major agreement to ramp up production in this country still hasn't been signed.

Sources from CBC News indicate that allies are pressing Canada, but the government doubts that the investments will pay off due to insufficient long-term demand for artillery ammunition worldwide.

The hesitation of the Canadian government is partly because expanding production of standard NATO 155mm ammunition, needed by both Ukraine and Canada, would require a federal government investment of $400 million in factories.

According to Canada's Department of National Defence, expanding and modernizing shell production facilities would take three years. Previously, Canada did invest about $5 million in modernizing production lines, but this step did not bring significant results.

Ammunition for Ukraine

At the beginning of May 2023, the European Union and its allies agreed to allocate one billion euros for joint purchases of ammunition for Ukraine. It was planned that EU countries would provide Ukraine with a million shells by March 2024. However, this plan has not yet been implemented.

Speaking in Munich, Czech President Petr Pavelek said that Prague has found 800,000 shells that could be sent to Ukraine in the coming weeks.

Recently, Estonian Prime Minister Kaja Kallas also said that Europe has tripled its production of shells for Ukraine. In addition, Polish Foreign Minister Radosław Sikorski has stated that Poland is considering the possibility of providing a larger quantity of ammunition to Ukraine.

Norway has announced the allocation of over $90 million to increase ammunition production and develop the country's defense industry potential.