European defense stocks fell after Zelensky's words on NATO abandonment
Shares of European defense companies fell Dec. 15 amid a new twist in talks on a possible peace deal that could end the war in Ukraine, CNBC reported.
Ukrainian President Vladimir Zelensky said over the weekend that the country is ready to give up its longstanding goal of joining the NATO military alliance in exchange for alternative security guarantees from European countries that would protect it from Russia.
On the background of this news, shares of Rheinmetall, Germany's largest arms manufacturer, fell by more than 2.5%. Shares of its German competitors Hensoldt and Renk also lost 1.7% each. Shares of Swedish fighter jet maker Saab were down 1.7% on December 15, but then recovered and are now trading up 0.2%.
The Stoxx Europe Aerospace and Defense index of European defense companies fell more than 0.2% on December 15. It has risen more than 50% since the beginning of the year.
What happened?
Vladimir Zelensky's statement about Ukraine's willingness to abandon long-term plans to join NATO came during talks with US representatives Steve Whitkoff and Jared Kushner, which continue this week. Kiev is now seeking separate security guarantees from the West, considering them a prerequisite for any sustainable ceasefire, CNBC wrote. Russia remains opposed to Ukraine's membership in NATO.
This article was AI-translated and verified by a human editor
