Connect with us

Diplomacy

Canada selects Germany’s TKMS for landmark 12-submarine order valued at 20 billion euros

Published

on

German naval manufacturer Thyssenkrupp Marine Systems (TKMS) has secured the largest contract in its corporate history, a landmark agreement to deliver 12 submarines to the Royal Canadian Navy for approximately €20 billion ($21.7 billion).

Canadian Prime Minister Mark Carney announced the decision on Monday, confirming that Ottawa has selected the TKMS Type 212 CD (Common Design) submarine over the rival KSS-III model offered by South Korea’s Hanwha Ocean, which had also been under close consideration.

As a result of the selection, the navies of Germany, Norway, and Canada will operate the identical class of vessel. The three nations will be able to field an unprecedented combined fleet of 24 Type 212 CD submarines to counter the Russian Navy in the North Atlantic and Arctic oceans.

Beyond the naval contract, TKMS is reportedly laying the groundwork for an additional sweeping bilateral package valued in the tens of billions of euros. This broader economic initiative includes German purchases of Canadian liquefied natural gas (LNG) and the construction of launch facilities in eastern Canada for German space launch vehicles.

These aerospace facilities are intended to grant Ottawa operational independence from US launch infrastructure.

TKMS is experiencing a period of significant growth, further bolstered by fresh orders from the German Navy. Among these domestic programs, the company is developing the F127 frigate, which represents the most expensive defense procurement project in the history of the German armed forces.

Ottawa selects German industrial giant over South Korean rival

Canada has decided to award its long-planned contract for the construction of up to 12 new submarines to the Kiel-based naval specialist TKMS, passing over South Korean competition.

Prime Minister Carney announced the decision on the eve of his departure for the NATO summit in Ankara. Under the terms of the agreement, Ottawa will procure the Type 212 CD submarines, which TKMS produces in joint cooperation with Norway’s Kongsberg Defence & Aerospace (KDA).

Compared to the predecessor Type 212 A class, the Type 212 CD features advanced sensor suites and has been optimized for operations in the harsh environments of the North Atlantic and the Arctic, including under-ice deployments.

In winning the tender, TKMS defeated Hanwha Ocean. The South Korean shipbuilder’s KSS-III model, which carried a significantly lower price tag, was ultimately bypassed.

The total financial volume of the Canadian acquisition is estimated at approximately €20 billion.

The first Type 212 CD submarines are scheduled for delivery in 2033. It remains undisclosed whether the Royal Canadian Navy will take immediate delivery of these initial hulls or face a longer induction timeline.

While final contractual details are still being negotiated, TKMS confirmed that the submarines will be constructed entirely at the German group’s shipyards in Kiel and Wismar. Canada’s industrial contribution to the primary construction will be limited to the supply of specialized non-magnetic steel.

Germany, Canada, and Norway form North Atlantic alliance against Russia

Canada’s selection of the TKMS platform is closely aligned with the primary operational requirements of its maritime forces.

On one front, Ottawa is increasingly focusing on potential northern deployments given its vast Arctic coastline and the ongoing reduction of polar ice cover.

On another, Canadian naval strategy is heavily oriented toward patrols in the North Atlantic. These missions aim to prevent Russian surface combatants and submarines from transiting the Arctic Ocean past Iceland to project power into the wider Atlantic.

With the primary objective of securing the strategically vital Greenland-Iceland-United Kingdom (GIUK) Gap, Germany, Norway, and Canada established a joint “North Atlantic Security Partnership” at the NATO summit in Washington in July 2024. Denmark formally joined the defense coalition in 2025.

The scope of this trilateral operational cooperation is broad. In addition to underwater assets, Germany, Norway, and Canada are acquiring Boeing P-8A Poseidon maritime patrol aircraft to conduct coordinated aerial surveillance over the North Atlantic.

Germany and Norway have already jointly ordered 12 Type 212 CD submarines.

If Canada fulfills its planned acquisition of 12 additional vessels, the three partner nations will eventually operate a highly standardized fleet of 24 identical submarines, streamlining joint operations and maintenance.

Targeting strategic independence from the US

The acquisition of the TKMS Type 212 CD is further supported by extensive industrial offset agreements negotiated between Berlin and Ottawa.

These offset packages are designed to deepen German-Canadian economic integration and industrial cooperation.

Through these initiatives, both nations aim to reduce their respective economic reliance on the United States.

As part of the offset programs, TKMS plans to establish a joint center of excellence for submarine simulation, crew training, and maintenance in partnership with Canadian technology firm CAE.

On Tuesday, German aerospace startup Isar Aerospace signed an agreement with Maritime Launch Services, a Canadian company developing a commercial spaceport near Canso, Nova Scotia.

Beginning in 2028, Isar Aerospace intends to launch its Spectrum launch vehicle from the Nova Scotia facility to deploy small and medium-sized satellites. Historically, Canada has relied entirely on US launch infrastructure for its space access.

Under parallel reciprocal investment frameworks, the German state-backed gas importer Sefe is scheduled to import 1 million metric tons of Canadian LNG annually.

This supply agreement is intended to partially reduce Germany’s reliance on US shale gas imports.

Discussions have also taken place regarding German investments in Canada’s raw materials sector, specifically focusing on securing supply chains for rare earth elements.

TKMS order book swells amid defense procurement boom

The Canadian submarine contract provides significant commercial momentum to TKMS.

As of March 31, the company reported a record-high order backlog of €20.6 billion.

In the first half of the 2025/26 fiscal year, TKMS reported a 10% increase in revenue to €1.17 billion. While this remains substantially below the volumes recorded by German defense prime Rheinmetall—which grew its revenue by approximately 8% to €1.94 billion in the first quarter of 2026 alone—it highlights the broader defense boom lifting the naval specialist.

TKMS recently rose to 61st place in the Stockholm International Peace Research Institute (SIPRI) global ranking of the world’s largest defense contractors.

The company is anticipating further export orders. In late June, TKMS celebrated the christening of the third Tamandaré-class frigate being built for the Brazilian Navy in Itajaí, Brazil.

One vessel in the class has already been delivered, a second is scheduled to begin sea trials this year, and a fourth is currently under construction.

The Brazilian government is reportedly planning to place an follow-on order for an additional four TKMS frigates.

To manage this sharp increase in naval production, TKMS has been in ongoing negotiations to acquire the adjacent German Naval Yards facility in Kiel.

However, Rheinmetall has also expressed strong interest in acquiring the same shipyard to support its newly established maritime division.

US technology remains central to defense systems

TKMS is positioned to benefit heavily from domestic procurement programs initiated by the German Navy.

Following the cancellation of the F126 frigate project, TKMS secured contracts to build new MEKO A-200 class frigates as a rapid alternative.

The initial phase of the program involves the construction of four hulls at a cost of €6.63 billion, with a follow-on option for an additional four vessels valued at €5.3 billion.

These domestic surface combatant contracts, alongside the Canadian submarine program, are not yet reflected in the record €20.6 billion backlog reported on March 31.

Concurrently, development continues on the F127 next-generation frigate program, which TKMS is executing in partnership with the Naval Vessels Lürssen shipyard (acquired from Rheinmetall).

The German Navy currently plans to procure eight F127 frigates to serve as its primary air defense combatants over the coming decades.

Total program costs are estimated to exceed €26 billion, which naval analysts note makes the F127 the most expensive procurement project in German naval history.

However, the program has faced criticism regarding its planned air defense suite, which relies on Standard Missile interceptors and the SPY-6 radar system.

Both systems are manufactured by the US defense contractor RTX (formerly Raytheon), maintaining a significant degree of technological dependence on Washington.

Defense analysts point out that there are currently no equivalent European alternatives to these US systems, and note that Germany will remain reliant on US satellite and GPS networks for the next decade.

While a transition to European systems, such as the Iris-T interceptor family manufactured by Germany’s Diehl, could eventually offer strategic independence from the US, experts estimate that this technology will not be sufficiently mature for high-end naval air defense applications until the mid-2030s.

Diplomacy

South Korea pulls part of embassy staff from Ukraine amid POW dispute

Published

on

The South Korean government has decided to withdraw part of its embassy staff from Ukraine.

According to the Yonhap news agency, Foreign Ministry spokesman Park Doo-sun cited the Kyiv administration’s failure to take “positive steps” in the dispute that began with the leak of information concerning the handover of North Korean prisoners of war as the justification for the move.

The spokesman also listed the ongoing threat of air strikes, which complicates the safety of diplomats, among the reasons.

Following the withdrawal of part of the personnel, essential diplomatic contacts will continue under the leadership of the charge d’affaires ad interim to Ukraine. All consular staff tasked with protecting South Korean citizens will remain in Ukraine.

Prior to this move, the Seoul administration decided on 8 October to withdraw its ambassador. The Foreign Ministry stated at the time that it was ready to continue consultations with Kyiv to resolve the emerging issues constructively.

Tensions between the two countries began with a speech delivered by Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in September.

Zelenskyy announced that two captured soldiers from the North Korean army had been handed over to South Korea.

South Korean President Lee Jae-myung, meanwhile, accused Kyiv of breaching a confidentiality agreement.

Lee said the disclosure of this information endangered the prisoners’ families and stability on the Korean Peninsula.

Seoul expects a public apology

Dmytro Lytvyn, an adviser to the Ukrainian president, denied the existence of a confidentiality agreement.

The South Korean Foreign Ministry summoned Ukrainian Charge d’Affaires Andriy Veshkin on 28 September and issued a note of protest against Lytvyn’s remarks.

President Lee Jae-myung warned in a statement on 2 October that they would take additional measures against Kyiv if Ukrainian authorities did not acknowledge the agreement and make a public apology. Lee stated that Ukraine itself had initially requested that the transfer of the prisoners be kept confidential.

Ukrainian Foreign Ministry spokesman Heorhii Tykhyi said the dispute stemmed from differing interpretations of the confidentiality regime.

Tykhyi noted that Seoul, based on its constitution which recognises the entire Korean Peninsula as its own territory, requested that the prisoners be handed over “like its own citizens”.

Describing the handover as a “gesture of goodwill”, Tykhyi stated that they were conducting closed-door negotiations to resolve differences of opinion.

Ambassador Park Ki-chang returned to Seoul on 10 October. According to a report by The Korea Times newspaper citing the ministry, recalling the ambassador served as a diplomatic protest against the leak of information regarding the prisoners.

The newspaper wrote that South Korea had last taken a similar step in 2008 by withdrawing its ambassador to Japan.

Moscow warned foreign diplomats

On 3 October, the Russian Foreign Ministry reiterated its warning to foreign nationals, including diplomatic mission staff, against remaining in Ukraine.

The ministry recalled its advice to leave Kyiv, citing ongoing strikes against military targets.

The ministry noted that those who failed to heed the warnings would bear responsibility for the potential consequences.

Kremlin spokesman Dmitry Peskov said in a statement on 24 September that they had no information regarding Kyiv handing over two North Korean prisoners of war to Seoul.

Peskov, noting that prisoner matters fall under the authority of the Defence Ministry and intelligence services, said, “Contacts through the special services are continuing.”

Continue Reading

Diplomacy

Ex-BND head Hanning tied to former Mossad chief amid spy inquiry

Published

on

August Hanning, who led Germany’s Federal Intelligence Service (BND) between 1998 and 2005, was arrested on 6 October on allegations that he obtained roughly 2,000 classified agency documents and used them during contacts with intelligence officers from a foreign state.

Accused of high treason and espionage on behalf of a foreign intelligence agency, the former spy chief is alleged to have procured the documents from former BND employee Manfred D.

Prosecutors stated that the leaked records included internal briefing notes presented to senior German officials, though the Berlin government has not yet publicly disclosed which country received the classified data.

According to an exclusive report by Jake Green for The Cradle, seized email exchanges revealed extensive ties between the arrested Hanning and former Mossad director Danny Yatom.

The correspondence shows that the two former intelligence directors built an ongoing network of contacts following their public service, combining commercial ventures, efforts to secure political influence, and intelligence links.

This dynamic has triggered debate that using personal connections and official access for private gain has left Germany’s intelligence apparatus vulnerable.

Intelligence notes for 10,000 euros and campaign proposals

According to the reviewed emails, Hanning told Yatom in a 2018 message that he could prepare an “overall assessment based on information obtained from senior German officials and intelligence agencies” concerning an unidentified candidate.

The former BND head committed to completing the report by 13 July in exchange for 10,000 euros.

Contacts between the two men subsequently expanded to cover domestic political processes in Germany. Ahead of the September 2021 federal election, Yatom asked Hanning to approach leading candidates.

Describing CIY Global as a “political campaign company”, the former Mossad chief noted that he aimed to introduce its capabilities to German politicians, and he mentioned his intention in the same exchange to transfer documents concerning a cybersecurity firm.

Cybersecurity partnership and surveillance operations across Europe

The partnership between Yatom and Hanning reached beyond political lobbying initiatives into the cybersecurity sector.

Hanning reportedly served as a consultant for World Health Energy Holdings, a cybersecurity company linked to Yatom.

Firms of this type, established or managed by former intelligence personnel, provide commercial platforms on the international market for Israeli-origin surveillance, cyber intelligence, and political influence capabilities.

The operational presence of private Israeli-based surveillance technologies across Europe has recently entered judicial records through scandals in Poland, Spain, and Greece.

Polish prosecutors announced on 12 October that data collected under the previous government via Pegasus spyware against political opponents had been transferred out of the country, adding that manufacturer NSO Group maintained access to the technical infrastructure.

In Spain, the 2022 CatalanGate investigation established that at least 65 people, including politicians, lawyers, and civil society representatives, were targeted using Pegasus or Candiru software, with Citizen Lab researchers publishing strong evidence linking the operation to Spanish authorities.

In Greece, the surveillance operation targeting journalist Thanasis Koukakis and Member of the European Parliament Nikos Androulakis was determined to have used Predator software, linked to Intellexa, a company founded by former Israeli intelligence officer Tal Dilian.

In the German espionage investigation, the traffic between Hanning and Yatom involving paid reporting, contacts with electoral candidates, and commercial partnerships does not yet provide conclusive legal evidence regarding the final destination of the roughly 2,000 classified documents.

Nevertheless, the disclosed correspondence gives German investigators a concrete line of inquiry to assess whether classified state secrets reached commercial networks tied to Israeli intelligence.

Continue Reading

Diplomacy

Trump dismisses US envoy to Greece Kimberly Guilfoyle

Published

on

US President Donald Trump has dismissed Kimberly Guilfoyle, the US ambassador in Athens, following serious press reports concerning her conduct.

White House Press Secretary Katie Zacharia told reporters during her first briefing that Guilfoyle had been asked to resign.

“She was doing a good job, but we didn’t like what we read in the press,” Trump said. “She was not a member of my family. I think she dated my son a long time ago.”

In a social media post, Guilfoyle stated: “These claims are unfounded, and I will resolutely defend my name, reputation, and integrity.” She added that she was particularly proud of the embassy’s work.

According to Kathimerini, her removal came as no surprise in Washington. Days of successive disclosures and vigorous exploitation of the matter by Democrats had been inflicting political damage on the White House ahead of the sensitive midterm elections.

The US State Department was instructed not to comment, with crisis management transferred entirely to the White House.

Reports indicate that most of the president’s team swiftly favoured Guilfoyle’s dismissal, while Secretary of State Marco Rubio was reportedly uneasy with the demonstratively warm public welcome she had staged for him.

Democrats on the House Foreign Affairs Committee have called for an investigation.

“Her resignation does not absolve her of responsibility,” the lawmakers wrote, adding: “While American families struggled to make ends meet, she used her position as a Trump administration official to enrich herself.”

Chargé d’Affaires Josh Huck will assume ambassadorial duties until a successor is chosen.

Meanwhile, Guilfoyle’s departure is expected to cause delays in agreements between Greece and the US.

These include the so-called “Rubio package”, comprising approximately $4 billion in arms deals finalised only days before the secretary of state’s arrival.

Several procedural steps still remain before the contracts can be signed.

In Athens, opposition parties are demanding answers. Dimitris Mantzos of PASOK called for a detailed briefing on the agreements reached during Rubio’s visit.

Continue Reading

MOST READ

Turkey