Canada to spend C$2.3bn on drones, a third of production to go to Ukraine

Funding for unmanned systems programme

The Government of Canada has allocated funds in the draft federal budget for 2026 for combat drones and counter-unmanned aerial vehicle systems. Total expenditure will amount to at least C$2.3bn, equivalent to approximately US$1.8bn. These resources will be directed over five years towards the procurement of combat drones and systems designed to counter unmanned aerial vehicles.

Cooperation with Ukraine in production

Alongside the budgetary decisions, Ottawa signed an agreement with Ukraine to expand joint drone production. Under the arrangement, a third of the Canadian product created within the framework of this cooperation is planned to be transferred to Kyiv.