Canada unveils new NATO defence initiatives, extends Baltic mission and expands military aid to Ukraine

Prime Minister Mark Carney, in a statement said, Canada would expand its contribution to NATO through new defence procurement, industrial partnerships and financial initiatives while increasing support for Ukraine amid Russia's war.

Among the measures announced was an approximately C$800 million (US$585 million) contract with Norway's Kongsberg Defence and Aerospace to procure Joint Strike Missiles for Canada's future F-35 fighter fleet. 

The government also unveiled a C$180 million plan to procure light utility vehicles through Canadian suppliers under a revised defence procurement strategy.

Canada said it would extend Operation REASSURANCE, its largest overseas military mission, until 2031 and increase its permanently deployed personnel in Eastern Europe to as many as 2,600.

Ottawa also announced that it will join Latvia and Denmark as a framework nation for NATO's Multinational Division North.

The government shared its plans to help establish the Defence, Security and Resilience Bank, a proposed multilateral financial institution intended to provide long-term financing for defence and security projects.

Canadian officials said eight countries have expressed support for the initiative, with Canada expected to host its headquarters.

Canada also said it would begin negotiations to join NATO's Innovation Sub-Fund, which invests in emerging defence technologies, and confirmed it will host the 2027 NATO Industry Forum.

As part of previously announced military assistance for Ukraine, Ottawa allocated C$475 million over three years for ammunition, including C$75 million for the Czech-led ammunition initiative.

Another nearly C$400 million will fund 35 Canadian-built armoured vehicles for Ukraine, while C$50 million will be used to provide information technology, cyber support and engineering equipment.

Carney also announced an agreement in principle with Canadian satellite operator Telesat to provide military satellite communications for Arctic operations under the Enhanced Satellite Communications Project–Polar.

On trade, Canada launched negotiations with Germany on a strategic partnership agreement covering defence, technology, energy and critical supply chains. It also opened talks with Türkiye on a comprehensive free trade agreement.

"The threats facing us today are real," Carney said, adding that Canada was expanding its military capabilities through investments in submarines, aircraft, cyber defences and partnerships with allies.

The announcements came after NATO members signed a joint declaration reaffirming their commitment to the alliance and transatlantic security. Canada said it remains on track to meet NATO's target of spending 5% of gross domestic product on defence by 2035.

Canada has committed more than C$25.5 billion in assistance to Ukraine since Russia's full-scale invasion in 2022, including over C$8.5 billion in military aid, according to the government.