European defense stocks on Friday fell to their lowest levels since early September after Ukrainian President Vladimir Zelensky said he was ready to work "honestly" on a U.S.-backed plan to end the war, Reuters writes.

The index of aerospace and defense companies (SXPARO) was down nearly 3% in trading on Nov. 21. This week could be the worst since mid-October for the index, which has gained more than 200% since February 2022 after Russia's war against Ukraine began, the agency noted.

Shares of German military equipment maker Renk fell more than 11%, declining for the sixth consecutive day. Other German arms makers Hensoldt and Rheinmetall were down about 6%. Italy's Leonardo and Sweden's Saab lost between 2% and 3%.

Earlier, analysts at JPMorgan wrote that they view the plan being developed by the US as unacceptable for Ukraine and its European allies, and the recent sell-off of defense companies as a "compelling entry point" into the sector.

"If the U.S. is able to impose this plan (which we believe is unlikely), we believe this would represent a de facto victory for Ma, leading to an even larger and much faster increase in European defense spending," the analysts said.

On the eve, the mass media published the text of the plan developed by the USA to end the war in Ukraine. It consists of 28 points, including Ukraine's refusal to join NATO and territorial concessions. According to the Financial Times sources, Washington is putting pressure on Kiev in order to force it to accept the plan. Ukrainian President Vladimir Zelenskyy said that Kiev was "ready for constructive, honest and prompt work" on the points of the peace plan.

This article was AI-translated and verified by a human editor

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