Shares of German defence companies fell after the Frankfurter Allgemeine Sonntagszeitung (FAZ) newspaper reported that the Finance Ministry would not approve additional applications for military aid to Ukraine due to budget constraints.
This news was reported by RBC Ukraine citing Reuters.
Shares in arms manufacturer Rheinmetall fell 3 per cent, making them the biggest foreigners on Germany’s Dax blue-chip index. Shares in Hensoldt, air defence radar maker IRIS-T and tank gearbox maker Renk fell 6 percent and 4 percent respectively.
Citing a letter from the finance ministry dated 5 August, FAZ reported that new funding requests for Ukraine will not be approved at the request of Chancellor Olaf Scholz.
Around EUR 8 billion has been allocated for military aid to Ukraine in 2024, while the EUR 4 billion budgeted for 2025 has already been exceeded.
