As allies scramble to supply Ukraine, Canada still has no deal to ramp up munitions production

In the fall of 2022, a little more than six months into the full-scale Russian invasion of Ukraine, two of Canada's major ammunition manufacturers submitted proposals to the Liberal government to drastically increase production of artillery shells.

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.

And there doesn't appear to be one on the immediate horizon, despite pressure from allies who already have moved to increase their own munitions capacity.

Canada and the United States have held exploratory talks aimed at finding ways to resupply Ukraine, discussions that quickly turned to the question of how to replenish dwindling domestic inventories.

The Liberal government's hesitation stems in part from the fact that boosting production of the NATO-standard 155 millimetre shells that both Canada and Ukraine need requires a federal investment of as much as $400 million in the factories where they're made.

«There have been discussions. I've not yet signed a deal,» Defence Minister Bill Blair said in a recent interview, adding that he spoke recently with the finance and innovation ministers about the issue.

«We're looking hard at making an investment in Canada to increase [munitions] production. The current ammunition situation is unacceptable in Ukraine. It's unacceptable for NATO. Unfortunately, it's something that we got to fix.»

There are «significant supply chain issues,» Blair said. Part of the problem is the defence industry's struggles to secure a supply of the mineral antimony (a critical component in everything from armour-piercing bullets and shells