France, Mar 26: Canada is stepping up efforts to rally support among leading economies for a new multilateral defence financing institution aimed at strengthening smaller firms within the military supply chain, Foreign Minister Anita Anand said on Thursday.
Ottawa plans to present the proposal for a Defence and Security Resilience Bank (DSRB) during the ongoing meeting of G7 foreign ministers in France. The initiative is part of a broader push by Prime Minister Mark Carney to deepen strategic coordination among allies, particularly within NATO, at a time of rising geopolitical instability.
The proposed bank would focus on mobilising capital for small and medium-sized defence companies, many of which face barriers in accessing financing despite growing demand driven by global conflicts, including the war in Ukraine and tensions involving Iran.
Speaking on the sidelines of the meeting, Anand emphasised that broader participation would be key to determining the scale and effectiveness of the fund, adding that Canada is actively encouraging more countries to join the initiative. She described the proposed institution as a mechanism to pool resources and channel them efficiently toward firms critical to defence production.
However, consensus among allies remains uncertain. Germany has declined to back the proposal, while the United Kingdom is pursuing a separate financing arrangement alongside the Netherlands and Finland. These parallel efforts highlight differing approaches among Western nations to scaling up defence investment.
Canadian officials argue that existing frameworks, including large-scale European Union lending programmes, do not sufficiently address the needs of smaller enterprises that are essential for rapid production and innovation in defence manufacturing.
The discussions on the structure, funding model, and governance of the DSRB are expected to continue over the coming months, with Canada hosting preparatory meetings in Montreal, a potential location for the bank’s headquarters.
Anand also underscored lessons drawn from the early stages of the Ukraine conflict, noting the urgent need for faster production capacity and improved interoperability among allied forces. Reaffirming Ottawa’s stance on the conflict, she stressed that decisions regarding Ukraine’s territorial integrity must remain solely with Kyiv.
Canada has already committed substantial financial and military assistance to Ukraine and signalled that additional support, including coordination with private sector partners, is under consideration as the conflict continues.
