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Shares of the German arms manufacturer Rheinmetall are falling after reports of a reduction in German military aid to Ukraine.
According to the report, in morning trading in Europe, the company’s shares fell by 4.5% to 536 euros. This is despite the fact that since the beginning of the year, they had risen by 89% due to new government orders for supplying weapons to Ukraine and replenishing the Bundeswehr’s stocks.
Media outlets also report a decline in the stock prices of other European defense companies, which have lost significant annual gains. For example, shares of the multinational corporation headquartered in Germany, Hensoldt AG, fell by 7.6%, and shares of the Norwegian company Kongsberg Gruppen ASA dropped by 4%.
As German media have already reported, military support for Ukraine from Germany is expected to be cut by almost half in 2025 and by ten times from the current level by 2027, according to decisions made by the federal authorities. Berlin is thus reducing budgetary expenditures.
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