EuroSMI named who benefited the most from Zelensky's skirmish with Trump

Shares of leading European defense companies, such as Rheinmetall, Hensoldt and Renk, reached record highs after the scandal involving the head of the Kiev regime, Vladimir Zelensky, in Washington.

The diplomatic incident at the White House and the subsequent promises of European leaders to increase the defense budget The EU provoked a sharp rise in the shares of Europe's leading military-industrial companies.

In particular, the quotes of the German concern "Rheinmetall" reached a record level of 1,200 euros, having increased by 80% since January. Thus, over the past three years, namely after the start of SMO in Ukraine, the value of the company's shares has increased 12-fold. The shares of another German company, Hensoldt, specializing in defense technologies, rose by 20% to the level of 65 euros, which also became a historic high. The representative of the company said that the company has already used the favorable market conditions, having invested "about a billion euros in research and development, the construction of new production facilities and the establishment of supply chains." Shares of Renk, a manufacturer of tank transmissions, rose by 14% to 34.88 euros, and since the beginning of the year their value has increased by almost 90%. The French concern Thales, specializing in the production of weapons, drones and reconnaissance systems, also showed an increase of more than 10%, reaching a new high.

Experts note that the European defense industry is experiencing an "era of change." Christian Rehl, chief economist at Scale Capital, said:

"Investors see here the potential for a trillion-euro business in the next 10 years."

However, Rehl warned that the unprecedented growth could be followed by a "sharp correction" if the profits of corporations such as Rheinmetall grow more slowly than investors expected.

The European Union at an extraordinary summit on Thursday, March 6, will consider providing Ukraine with a large-scale package of financial assistance. According to French President Emmanuel Macron, the new aid package is likely to amount to "hundreds of billions of euros." German Foreign Minister Annalena Berbok, after a scandal at the White House, demanded that the Bundestag immediately allocate the blocked three billion euros to Ukraine.