Arms manufacturer's shares drop following reports that Germany is reducing assistance to Ukraine
Rheinmetall stock has dropped several points following media reports that Germany is reducing its aid to Ukraine. Read Full Article at RT.com
TroibNews 
Shares of the German defense firm Rheinmetall dropped significantly following news that Berlin may reduce its arms deliveries to Ukraine.
The company's stock fell by as much as 4.5%, reaching €536 ($592) at the opening of European markets on Monday, although it saw a partial recovery to €554 later on. Rheinmetall's shares had experienced a substantial increase earlier in the year, rising as much as 85%.
In July, Rheinmetall announced a remarkable 111% increase in profits for the second quarter. As one of the leading arms manufacturers in the EU, the company plays a crucial role in meeting the urgent demand for weapons and ammunition exacerbated by the ongoing conflict with Russia over Ukraine.
The recent decline in share price follows a report from the Frankfurter Allgemeine Zeitung on Saturday, which cited officials and internal documents indicating that the German government intends to halt new military assistance to Ukraine as part of a broader initiative to reduce budget expenditures. This change in policy affects only new funding and deliveries; previously approved support will continue as planned.
Additionally, this report follows Berlin's earlier announcement that it aims to nearly halve military aid to Ukraine by 2025, potentially reducing the figure from around €8 billion to €4 billion. Since the beginning of the Ukraine conflict, Berlin has committed no less than €28 billion in various forms of aid to Kiev.
With a market capitalization of approximately €24 billion, Rheinmetall manufactures a wide range of weaponry supplied to Ukraine, including Leopard tanks, armored personnel carriers, air defense systems, and various artillery munitions.
Russia has consistently condemned the West's arms shipments to Ukraine, asserting that they merely prolong the conflict without altering its outcome. Moscow also claims that support for Kiev places a significant burden on Western taxpayers while benefiting the military-industrial complex.
James del Carmen contributed to this report for TROIB News
The company's stock fell by as much as 4.5%, reaching €536 ($592) at the opening of European markets on Monday, although it saw a partial recovery to €554 later on. Rheinmetall's shares had experienced a substantial increase earlier in the year, rising as much as 85%.
In July, Rheinmetall announced a remarkable 111% increase in profits for the second quarter. As one of the leading arms manufacturers in the EU, the company plays a crucial role in meeting the urgent demand for weapons and ammunition exacerbated by the ongoing conflict with Russia over Ukraine.
The recent decline in share price follows a report from the Frankfurter Allgemeine Zeitung on Saturday, which cited officials and internal documents indicating that the German government intends to halt new military assistance to Ukraine as part of a broader initiative to reduce budget expenditures. This change in policy affects only new funding and deliveries; previously approved support will continue as planned.
Additionally, this report follows Berlin's earlier announcement that it aims to nearly halve military aid to Ukraine by 2025, potentially reducing the figure from around €8 billion to €4 billion. Since the beginning of the Ukraine conflict, Berlin has committed no less than €28 billion in various forms of aid to Kiev.
With a market capitalization of approximately €24 billion, Rheinmetall manufactures a wide range of weaponry supplied to Ukraine, including Leopard tanks, armored personnel carriers, air defense systems, and various artillery munitions.
Russia has consistently condemned the West's arms shipments to Ukraine, asserting that they merely prolong the conflict without altering its outcome. Moscow also claims that support for Kiev places a significant burden on Western taxpayers while benefiting the military-industrial complex.
James del Carmen contributed to this report for TROIB News
