Stock Prices of Defense Company Drop Following Reports of Germany Reducing Aid to Ukraine
Rheinmetall stock has dropped significantly following media reports indicating that Germany is reducing its aid to Ukraine. Read Full Article at RT.com.
TroibNews 
Shares of the German defense firm Rheinmetall have fallen sharply following reports that Berlin might reduce arms deliveries to Ukraine.
On Monday morning, after European markets opened, Rheinmetall's share price plummeted by up to 4.5%, reaching €536 ($592), before partially recovering to €554. The company's stock had previously risen significantly this year, gaining approximately 85%.
In July, Rheinmetall announced a remarkable 111% increase in its profits for the second quarter. The company is one of the key arms manufacturers in the EU, which is in urgent need of weapons and ammunition amid the ongoing conflict with Russia regarding Ukraine.
This recent decline in share price comes after a report from the Frankfurter Allgemeine Zeitung on Saturday, which cited officials and internal documents suggesting that the German government intends to halt new military assistance to Ukraine as part of an initiative to reduce budget expenditures. This policy change is expected to only impact new funding and deliveries, while previously approved aid will still be honored.
Additionally, this report follows Berlin's announcement last month about plans to almost halve military support for Ukraine by 2025, decreasing from about €8 billion to approximately €4 billion. Since the beginning of the Ukraine conflict, Berlin has committed at least €28 billion in various forms of assistance to Kiev.
With a market capitalization of roughly €24 billion, Rheinmetall manufactures a wide range of weapons sent to Ukraine, including Leopard tanks, armored personnel carriers, air defense systems, and various types of artillery shells.
Russia has consistently condemned the supply of Western arms to Ukraine, claiming that these shipments only extend the conflict without altering its outcome. Moscow has also argued that the efforts to aid Kiev are becoming a significant burden for Western taxpayers, while benefitting the military-industrial complex.
Max Fischer contributed to this report for TROIB News
On Monday morning, after European markets opened, Rheinmetall's share price plummeted by up to 4.5%, reaching €536 ($592), before partially recovering to €554. The company's stock had previously risen significantly this year, gaining approximately 85%.
In July, Rheinmetall announced a remarkable 111% increase in its profits for the second quarter. The company is one of the key arms manufacturers in the EU, which is in urgent need of weapons and ammunition amid the ongoing conflict with Russia regarding Ukraine.
This recent decline in share price comes after a report from the Frankfurter Allgemeine Zeitung on Saturday, which cited officials and internal documents suggesting that the German government intends to halt new military assistance to Ukraine as part of an initiative to reduce budget expenditures. This policy change is expected to only impact new funding and deliveries, while previously approved aid will still be honored.
Additionally, this report follows Berlin's announcement last month about plans to almost halve military support for Ukraine by 2025, decreasing from about €8 billion to approximately €4 billion. Since the beginning of the Ukraine conflict, Berlin has committed at least €28 billion in various forms of assistance to Kiev.
With a market capitalization of roughly €24 billion, Rheinmetall manufactures a wide range of weapons sent to Ukraine, including Leopard tanks, armored personnel carriers, air defense systems, and various types of artillery shells.
Russia has consistently condemned the supply of Western arms to Ukraine, claiming that these shipments only extend the conflict without altering its outcome. Moscow has also argued that the efforts to aid Kiev are becoming a significant burden for Western taxpayers, while benefitting the military-industrial complex.
Max Fischer contributed to this report for TROIB News
