Shares of German arms companies fall amid debate over aid to Ukraine, Spiegel says

Disputes within the German government over further aid to Ukraine led to a drop in the stock prices of German arms manufacturers, Spiegel reported on Aug. 19.
Frankfurter Allgemeine Zeitung (FAZ) reported on Aug. 17 that Germany’s Finance Ministry was not planning to approve additional aid to Ukraine as part of budgetary savings this year.
Ukraine’s Foreign Ministry called the reports on Germany allegedly halting military aid for Ukraine a “manipulation.”
Shares of German arms maker Rheinmetall, which have risen 28% over the past two weeks, fell 5% on Aug. 19 as soon as the markets opened, although by midday, the decline had been reduced to nearly 3%, according to Spiegel.
Shares of Bavarian arms manufacturers Renk and Hensoldt, after a sharp morning drop on the same day, had fallen about 4% by noon.
According to the agreed-upon state budget, Germany’s military aid to Ukraine will be cut by half next year.
Berlin will provide Kyiv with around 8 billion euros ($8.7 billion) this year but will only give 4 billion euros ($4.35 billion) in 2025.
Berlin is hoping that the shortfall will be made up by the profits from frozen Russian assets, Reuters reported.