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Defence stocks drop after Berlin says it will reject new aid requests for Ukraine



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** Shares of European defence firms slide after the German federal government said it would reject new military aid requests for Ukraine due to spending cuts

** The government, cited by newspaper FAZ, says the reason for the cuts is the disastrous state of the federal budget

** Shares in Rheinmetall RHMG.DE drop 4%, the biggest faller on Europe's STOXX 600 .STOXX, with Saab SAF.PA (-3.3%), BAE Systems BAES.L (-1.9%), Leonardo LDOF.MI (-1.9%) and Thales TCFP.PA (-1.4%) also among the bottom performers

** Germany's Hensoldt HAGG.DE and Renk R3NK.DE drop 6.4% and 3.9%, respectively, and France's Safran edges down 0.8%

** In July, the federal government said it would halve its military aid to Ukraine next year to 4 billion euros ($4.4 billion) in 2025, from around 8 billion in 2024


($1 = 0.9057 euros)



Reporting by Anastasiia Kozlova and Amir Orusov

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