Canada and Ukraine create a national drone marketplace and expand defence co‑production

What’s happening

• Canada has created the Defence Drone Initiative Marketplace (DDIM), a national digital supply arrangement to connect operators and end users with Canadian drone and counter‑drone suppliers.
• Initial contracts worth up to $50 million were announced and are expected to increase the number of drones used by the Canadian Armed Forces tenfold. The goal is to build Canadian industry capacity to produce millions of drones over the next two years.

Who it affects and how

• Canadian Armed Forces and the Canadian Coast Guard will receive priority access and sustainment support.
• Canadian defence firms and workers: contracts require training, maintenance, repair, configuration, and sustainment to take place in Canada.
• Ukraine: co‑production and partnerships will expand Ukrainian access to drones and related technologies.

Key partners and suppliers named (initial contracts)

• Beonyx (Québec)
• AVSS (New Brunswick and Ontario)
• Volatus Aerospace (Québec, with UK partners)
• Twenty20 Insight Inc. (Ontario)
• Draganfly (Saskatchewan)
• Objexis AI (Ontario)

Major finance and security measures announced

• Up to $350 million to procure air defence interceptors via the U.S.-led JUMPSTART mechanism.
• Nearly $435 million in loan guarantees to the European Bank for Reconstruction and Development for energy security (including winter gas and backup generators).
• $200 million in concessional loans through Export Development Canada for reconstruction projects.
• An additional $10 million for the Ukraine Energy Support Fund (bringing it to $100 million total), and $2 million to the IEA Joint Work Programme.
• Up to $40.1 million for a multi‑donor pooled fund for Ukrainian veterans.
• Up to $6 million to help return and reintegrate Ukrainian children unlawfully deported or transferred.
• New sanctions announced on eight individuals involved in violations of Ukrainian children’s rights.

Other notes

• The announcement includes a General Dynamics Mission Systems‑Canada partnership with Ukraine’s Green Tech Harvest and references other partnerships under negotiation.
• Leaders signed a Canada‑Ukraine Declaration for a 100‑Year Partnership and a Joint Declaration on enhanced defence and security cooperation.
• The release says Canada’s total commitments to Ukraine have now exceeded $26 billion since 2022.