BAE Systems, set to open a £25m artillery factory in Sheffield later this year, saw a 17% rise in share prices this morning after the London Ukraine summit on Sunday, despite students and anti-war groups rallying for a ceasefire.
The summit saw vows from various European and NATO leaders pledging support and emphasising the urgent need for Europe to rearm, especially in the case of Russia’s war against Ukraine.
Shares in the FTSE 100 weapons manufacturing companies, BAE Systems and Rolls-Royce, hit all-time highs the morning after the summit.
This comes at a time when university students and anti-war groups like Stop The War have incessantly rallied for the UK to stop arming countries and investing in war.
Lindsey German, national convenor of the Stop The War coalition, said in an article: “Starmer’s increases [of spending on defence] – to effectively 2.6% in two years and then to 3% in five – are at the expense of overseas aid, which will have horrendous consequences for some of the poorest and most desperate people in the world.”
BAE Systems’ factory opening in Sheffield this year is capable of manufacturing the company’s M777 lightweight towed howitzer, a weapon used by US, Canadian, Australian, and Indian forces.
A group of University of Sheffield (UoS) students occupied the Arts Tower in 2023 protesting the involvement of defence companies like Rolls Royce and BAE Systems in the University of Sheffield’s Careers Fair.
A 2023 transparency request from The Star revealed that the UoS was receiving £72 million in research funding over the past ten years from companies that manufacture weapons and military hardware alongside civilian products, a number higher than any other university in the UK at the time.
The current Labour government has pledged an increase in spending on defence, investing an additional £1.6bn to send thousands of air defence missiles to Ukraine, despite receiving criticism for taking away state pensions from WASPI women, saying that they “cannot justify paying for a £10.5bn compensation scheme at the expense of the taxpayer.”
Sir Keir Starmer said during the summit that Europe “must do the heavy lifting” in ensuring a peace deal between Russia and Ukraine – but that it must also have strong US backing.
Last month, the Prime Minister also pledged a 100-year partnership with Ukraine – which includes first and foremost military spending.
The two countries promised “military collaboration on maritime security through a new framework to strengthen Baltic Sea, Black Sea, and Azov Sea security and deter ongoing Russian aggression.”
Image source: BAE Systems
