Germany won't let up in military aid to Ukraine, Scholz says

TODENDORF, Germany (Reuters) - Germany will not slacken in its military support for Ukraine, Chancellor Olaf Scholz said on Wednesday, trying to dispel fears Berlin might disappoint Kyiv amid a domestic budget squeeze and media reports of a freeze on new German military aid.

"Germany's support for Ukraine will not cease. We have made provisions, struck (defence) deals and secured the funding in good time so that Ukraine can continue to fully rely on us in future," Scholz said.

European defence stocks fell in mid-August after the Frankfurter Allgemeine Sonntagszeitung (FAS) newspaper said the German finance ministry would not approve additional applications for Ukraine military aid due to budget constraints.

A German government spokesperson later called that report "incorrect" and reiterated Berlin's support for Ukraine for "as long as necessary".

Scholz was speaking at a military base close to the northern town of Todendorf, where Germany's first IRIS-T SLM medium-range air defence system was declared operational.

Even before the Luftwaffe took delivery of its first unit, Germany funded several IRIS-T SLM systems for Ukraine, where they are mainly used to guard Kyiv against Russian missile attacks, making it one of the most coveted Western arms donations.

So far, Germany has supplied four out of a total 12 pledged IRIS-T SLM units to Kyiv, with two more systems to be shipped by the end of the year.

"In Ukraine, IRIS-T has shot down more than 250 missiles, drones and cruise missiles so far and saved countless lives, at an impressive hit rate of 95% or even more," Scholz said.

Boasting a range of some 40 km (25 miles) and a 360-degree view, the system built by German arms maker Diehl has been used to shoot down cruise missiles -sed by Russia to attack power stations - and also aircraft, including Iran-made Shahed drones.

(Reporting by Sabine Siebold, Editing by Miranda Murray and Gareth Jones)