The Canadian public broadcaster CBC News reported this according to Ukrinform.
“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”, the statement reads.
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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.
According to CBC News sources, the government doubts that this investment will pay for itself due to the lack of long-term demand for artillery ammunition in the world. It says that if and when Ottawa decides to allocate the funds, it could be years before production increases.
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According to the Canadian Ministry of Defense, it will take three years to expand and modernize the production capacity of 155-mm shells.
CBC News notes that the federal government did invest about $5 million in modernizing production lines, but it did not bring any noticeable results.