A Canadian defense company has gone bankrupt due to an arms embargo imposed by Ottawa on Turkey in response to Ankara’s military operations in Syria and Azerbaijan, the Middle East Eye reports.
Telemus Systems Inc filed for bankruptcy last August because it lost its main customer, Turkish Aerospace Industries (TAI), following an arms embargo imposed by the Canadian government in 2020, according to a report prepared by the trustee KPMG Inc.
The company was selling a wide range of electronic intelligence and electronic support systems to the Turkish customer for a military drone known as TAI Anka.
“Despite repeated attempts by the company to reach a resolution with Global Affairs Canada, including explaining the significant negative impact on the company’s financial condition and solvency, the company’s Turkish export permits have remained on hold.” , indicates the report. “Due to government sanctions, the company was no longer able to generate revenue.”
The Canadian government decided in April 2021 to revoke Telemus Systems’ existing Turkish export permits as part of the arms embargo against Ankara, dealing the final blow to the company.
The report states that Telemus incurred a net loss of $ 360,000 in 2020 and recorded a net loss of $ 1.1 million in 2021, before shutting down operations on July 31.
Ottawa canceled all defense exports to Turkey earlier this year after an investigation found Canadian technology was used in the conflict between Azerbaijan and Armenia, the country’s foreign minister said. .
Last year, Ottawa launched an investigation into whether Turkey violated an end-user license agreement by selling Turkish armed drones to Azerbaijan.