Canada took 4 months to send money after deciding to buy air defence system for Ukraine

Canada initially took four months to enter the queue for acquiring the National Advanced Surface-to-Air Missile Systems (NASAMS) for Ukraine, following its decision to join a U.S. plan to purchase these crucial defensive systems.

Defence Minister Bill Blair maintains that this delay did not contribute to the slow pace of obtaining the high-tech capability, which remains several months away from delivery.

The proposal to purchase the NASAMS was first discussed by former Defence Minister Anita Anand and U.S. Defence Secretary Lloyd Austin at the Halifax International Security Forum in late November 2022, CBC News has learned. This discussion took place during a period when Russia was waging a severe ballistic missile campaign against Ukraine's electrical grid, resulting in numerous civilian casualties.

Anand announced the $406-million purchase plan in January 2023. However, according to recent statements from the Defence Department, the federal government did not transfer funds to the U.S. to initiate the purchase until March 2023, at the end of the fiscal year.

"I don't believe that that contributed in any way to the delay," Blair stated in a recent CBC News interview.

Blair explained that the process required more than just an agreement between the two officials; a contract and U.S. congressional approval were necessary due to the legal process involved in purchasing munitions for another government.

Washington could only begin negotiating a contract with manufacturers once it had received both its own and Canada’s funds. The U.S. Congress approved the deal in May 2023.

Blair anticipates that the NASAMS ordered by the U.S. will be delivered by the end of this year. "Ours will be among that tranche of deliveries and we'll immediately get it to Ukraine" in early 2025, he added.

The Liberal government has faced criticism for the slow acquisition process, particularly as civilian casualties in Ukraine mount.

Blair emphasized that the fastest way to obtain NASAMS was through Washington, leveraging an existing U.S. purchase.

During the Ukraine peace summit in Switzerland in June, Ukrainian Foreign Minister Dmytro Kuleba expressed urgent need for weapons and wished the promised air defense system from Canada was already operational.

Blair earlier attributed the delays to U.S. challenges in financing its portion of the deal, exacerbated by a political standoff in Congress that delayed funding for Ukraine, Israel, and Taiwan.

An additional complication arose when Raytheon, one of the manufacturers, requested the Pentagon waive certain provisions of the Truth in Negotiations Act (TINA) to expedite the NASAMS delivery. U.S. defense officials hesitated due to TINA’s requirements for demonstrating cost savings, which are challenging to establish for donations. Compliance with TINA reportedly adds another six to nine months to the procurement process.

Initially, Ukraine was informed that acquiring air defense systems could take up to five years. The average time to build a new NASAMS is approximately two years, according to Raytheon CEO Gregory Hayes.

The U.S. first announced a purchase of two NASAMS for Ukraine in July 2022, and then increased the order by six more in September. The initial systems, taken from a Pentagon order, arrived in Ukraine within 71 days of contract signing and achieved a 100% success rate in intercepting Russian drones and missiles.

Thomas Withington, an analyst at the U.K.-based Royal United Services Institute, noted that the struggle to acquire air defense systems reflects broader challenges beyond the Ukraine conflict.

Withington pointed out that the current situation resembles Cold War-era threats, as NATO countries now face significant air and missile threats.

Canada’s updated defense policy includes plans to acquire ground-based air defense systems for critical infrastructure protection. The military is also seeking an air defense system for overseas operations, which could potentially be used domestically.

Withington highlighted that defense contractors' production capacities are finite and expanding production lines requires careful consideration. He suggested that NATO countries might seek to increase air defense system acquisitions to deter future threats.

Blair did not provide a specific timeline for when Canada would acquire its own system but confirmed it is a top priority.