(Bloomberg) -- European defense stocks slid on Monday, paring some big year-to-date gains, after a weekend report from local media suggested that Germany will no longer grant new requests for aid to Ukraine in an effort to rein in spending.

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The government pushed back against the claim in a press conference on Monday, saying that the country would continue to support Ukraine in its defense against Russia’s invasion for as long as necessary.

Germany’s Rheinmetall AG fell as much as 5.1% in Frankfurt and Hensoldt AG slumped 7.6% before paring some of the losses. Norway’s Kongsberg Gruppen ASA dipped as much as 4%.

A basket of defense-exposed European shares tracked by Goldman Sachs Group Inc. dropped as much as 3.4%, still up 46% this year after investors piled into the sector amid global geopolitical unrest.

READ: Monday, Germany Pushes Back Against Report on Ending Ukraine Support

The Frankfurter Allgemeine Zeitung reported on Saturday that while existing German aid programs to Ukraine should generally continue, additional applications for military support will not be approved. It cited government documents, emails and unidentified officials.

Stocks such as Rheinmetall are coming back from technically overbought positions. The shares fell abruptly in April after Goldman analysts warned of high valuations.

A spokesperson for Rheinmetall declined to comment on the German government’s budgetary discussions, but said the defense firm would continue its close and strategic partnership with Ukraine, noting that other NATO and EU member states were also among its customers.

--With assistance from Laura Alviž, Michael Msika and Chris Reiter.

(Updates with Rheinmetall and German government’s response.)

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