European defence stocks hit record high after UK PM's troop deployment suggestion

The announcement by UK Prime Minister Keir Starmer regarding the potential deployment of British troops to Ukraine has led to a significant surge in the stock prices of defence companies in the UK.

Data from the London Stock Exchange reveals that BAE Systems shares surged by 6.8% at the opening of trading on February 17, marking the highest increase for the company in the past 18 months, Caliber.Az reports via foreign media.

It is estimated that the market capitalization of BAE Systems rose by £2 billion ($2.5 billion), reaching nearly £40 billion ($50.4 billion).

Meanwhile, shares of other prominent military suppliers to the British government, including Babcock and Rolls-Royce, saw gains of 1.6% and 1.5%, respectively.

On February 16, British Prime Minister Keir Starmer announced his readiness to send British troops to Ukraine as part of any postwar peacekeeping mission, emphasizing Europe's role in the ongoing negotiations to end the conflict. 

Starmer highlighted the necessity of securing a lasting peace in Ukraine to prevent further aggression from Russian President Vladimir Putin.

Starmer made it clear that any decision to put British servicemen and women "in harm's way" would not be taken lightly. However, he stressed that ensuring peace in Ukraine was crucial for the stability of Europe and global security. His comments followed U.S. Secretary of State Marco Rubio's endorsement of including Ukraine and European nations in peace talks with Russia.

The prime minister’s remarks mark the first time he explicitly stated his willingness to deploy British peacekeepers to Ukraine. He also indicated that the UK could contribute security guarantees to Ukraine by placing troops on the ground if necessary.

As international talks gather momentum, Starmer is expected to join European leaders in Paris for discussions initiated by French President Emmanuel Macron. Meanwhile, U.S. President Donald Trump's recent move to hold peace talks with Putin, bypassing European allies, has raised concerns among NATO members.

By Aghakazim Guliyev