Diplomatic efforts to end the war between Russia and Ukraine failed to produce any concrete progress on the first day of negotiations in Geneva.
• Second day of negotiations in Geneva between Russia and Ukraine
• First day of negotiations without a breakthrough
• Defense stocks largely react with countermoves
Negotiators from both sides met for intensive discussions under the mediation of US special envoy Steve Witkoff. Negotiations continue today.
Surprising participation of European security advisors
The Russian news agency Tass estimated the negotiations lasted around six hours. Both delegations then informed their governments in Moscow and Kyiv. The specific content of the discussions was not made public. The Ukrainian chief negotiator Rustem Umjerov simply explained: “After the joint part, work continued in thematic groups.” The negotiators concentrated on practical issues and possible solution mechanisms, whereby he mentioned a political and a military issue.
Territorial questions as a central obstacle
A key Russian demand remains the complete withdrawal of Ukrainian forces from the parts of the eastern regions of Luhansk and Donetsk that they still control. Zelenskyj categorically rejects this. “Emotionally, people will never forgive this. Never,” the president told Axios. The Ukrainian population would not be able to understand why additional territories should be given up. According to Zelensky, Kiev and Washington have agreed that any agreement must be confirmed by a referendum in Ukraine.
Possibility of frozen conflict
Zelensky was open to the idea of virtually freezing the conflict along the current front line. “I think people would accept that in a referendum. That’s my opinion,” he explained. Such a referendum could be held in parallel with presidential elections.
The Ukrainian president’s regular term of office ended in 2024. However, the martial law in force since the Russian attack in its current form prohibits elections and referendums. The Russian government, controlled by Putin for decades, disputes Zelensky’s democratic legitimacy and is calling for new elections in Ukraine. But there are fears that Moscow could try to install a pro-Kremlin puppet government through election manipulation.
Rheinmetall is allowed to take over Blohm+Voss and NVL
According to a decision by the EU Commission, Rheinmetall is allowed to buy the military division NVL of the Bremen shipyard group Lürssen. Germany’s largest arms company reached an agreement with Lürssen on the purchase in September. This also includes the Blohm+Voss shipyard in the port of Hamburg.
“The transaction primarily concerns the construction of surface ships and related services in the defense sector,” said the European Union’s competition watchdog. Given the limited impact on market structure, they did not raise any competition concerns following their review.
Rheinmetall wants to enter the marine sector
With the takeover, Rheinmetall wants to position itself more broadly and develop naval shipbuilding as an additional business area. The group has not yet built its own ships, but does business with the navy, for example with ship guns and laser modules. The parties agreed not to disclose the purchase price.
Since October 2021, the private Lürssen shipyard group has been divided into the naval division Naval Vessels Lürssen (NVL) and a yacht division. NVL specializes in the design and manufacture of naval and government vessels for the German Navy and customers worldwide. In Germany, NVL owns four shipyards: the Peene shipyard in Wolgast (Mecklenburg-Western Pomerania), parts of Blohm+Voss and the Norder shipyard in Hamburg as well as the Neue Jade shipyard in Wilhelmshaven. There are also locations in Bulgaria, Croatia, Egypt and Brunei.
This is how the shares of Rheinmetall, HENSOLDT, RENK and TKMS are currently moving
On Tuesday, German arms stocks reacted to the new negotiations with losses. In addition, negative analyst assessments led to discounts. The Rheinmetall share ultimately fell 0.52 percent to 1,611.50 euros. HENSOLDT shares ultimately fell by 1.60 percent to 79.90 euros, while RENK and TKMS fell by 1.39 percent to 58.22 euros and 1.21 percent to 97.60 euros via XETRA.
A countermovement largely set in on Wednesday: Rheinmetall shares rose by 5.12 percent to 1,694.00 euros at the XETRA close. The HENSOLDT paper meanwhile gained 3.13 percent to 82.40 euros. RENK rose 4.83 percent to 61.03 euros, while TKMS rose 0.77 percent to 98.35 euros.
Editorial staff at finanzen.net with material from dpa-AFX
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