🔗 Share this article A Czech Billionaire Takes PM Office, Promising to Cut Commercial Interests The incoming administration will be a clear departure from its strongly pro-Ukrainian forerunner. Entrepreneur Andrej Babis has officially become the Czech Republic's new premier, with his complete ministerial team slated to be appointed within days. His confirmation came after a central stipulation from President Petr Pavel – a official vow by Babis to give up oversight over his vast agribusiness and chemical conglomerate, Agrofert. "I commit to be a prime minister who champions the interests of all our citizens, both locally and globally," declared Babis following the event at Prague Castle. "A leader who will work to make the Czech Republic the best place to live on the whole globe." High Aspirations and a Vast Corporate Footprint These are grandiose goals, but Babis, 71, is accustomed to thinking big. Agrofert is so deeply embedded in the Czech commercial ecosystem that there is even a mobile tool to help shoppers bypass purchasing products made by the group's numerous subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or packaged bread from Penam – belongs to an Agrofert company, a thumbs-down symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will include members of the far-right SPD and the Eurosceptic "Drivers for Themselves" party. The Promise of Separation If he honors his vow to divest from the company he built from scratch, he will stop gaining from the sale of a single Agrofert product – from frankfurters to fertiliser. As prime minister, he states he will have no information of the conglomerate's economic status, nor any ability to affect its performance. Governmental decisions on government procurement or subsidies – whether national or EU-funded – will be made with no consideration for a company he will have relinquished ownership of or gain financially from, he further notes. Instead, he says that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. At that point, it will transfer to his children. This arrangement, he commented in a social media post, went "far beyond" the demands of Czech law. Clarification Needed The legal nature of this trust remains unclear – a domestic trust, or one in a foreign jurisdiction? The legal framework of a "blind trust" does not exist in Czech statutory law, and an team of legal experts will be necessary to devise an solution that works. Doubts from Watchdogs Skeptics, including Transparency International, are still skeptical. "A blind trust is not a solution," stated David Kotora, the head of Transparency International's Czech branch, in an comment. "True separation is absent. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an position of power, even at a EU level, he could possibly act in matters that would impact the sector in which Agrofert functions," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is the property of a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also runs a chain of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into all corners of Czech life is extensive. And as prime minister, for the second occasion, it is set to grow more extensive.
The incoming administration will be a clear departure from its strongly pro-Ukrainian forerunner. Entrepreneur Andrej Babis has officially become the Czech Republic's new premier, with his complete ministerial team slated to be appointed within days. His confirmation came after a central stipulation from President Petr Pavel – a official vow by Babis to give up oversight over his vast agribusiness and chemical conglomerate, Agrofert. "I commit to be a prime minister who champions the interests of all our citizens, both locally and globally," declared Babis following the event at Prague Castle. "A leader who will work to make the Czech Republic the best place to live on the whole globe." High Aspirations and a Vast Corporate Footprint These are grandiose goals, but Babis, 71, is accustomed to thinking big. Agrofert is so deeply embedded in the Czech commercial ecosystem that there is even a mobile tool to help shoppers bypass purchasing products made by the group's numerous subsidiaries. If a product – for example, frankfurters from Kostelecké uzeniny or packaged bread from Penam – belongs to an Agrofert company, a thumbs-down symbol is displayed. Babis, who was formerly prime minister for four years until 2021, has shifted to the right in recent years and his cabinet will include members of the far-right SPD and the Eurosceptic "Drivers for Themselves" party. The Promise of Separation If he honors his vow to divest from the company he built from scratch, he will stop gaining from the sale of a single Agrofert product – from frankfurters to fertiliser. As prime minister, he states he will have no information of the conglomerate's economic status, nor any ability to affect its performance. Governmental decisions on government procurement or subsidies – whether national or EU-funded – will be made with no consideration for a company he will have relinquished ownership of or gain financially from, he further notes. Instead, he says that Agrofert, valued at $4.3bn (£3.3bn), will be placed in a trust managed by an third-party manager, where it will stay until his death. At that point, it will transfer to his children. This arrangement, he commented in a social media post, went "far beyond" the demands of Czech law. Clarification Needed The legal nature of this trust remains unclear – a domestic trust, or one in a foreign jurisdiction? The legal framework of a "blind trust" does not exist in Czech statutory law, and an team of legal experts will be necessary to devise an solution that works. Doubts from Watchdogs Skeptics, including Transparency International, are still skeptical. "A blind trust is not a solution," stated David Kotora, the head of Transparency International's Czech branch, in an comment. "True separation is absent. He undoubtedly is acquainted with the managers. He knows Agrofert's holdings. From an position of power, even at a EU level, he could possibly act in matters that would impact the sector in which Agrofert functions," Kotora cautioned. Extensive Influence Extending Past Agrofert But it's not just food – and it's not just Agrofert. In the eastern suburbs of Prague, a medical facility towers over the O2 arena. While it is the property of a company called FutureLife a.s, that company is majority-owned by Hartenberg Holding, and Hartenberg Holding is, in turn, controlled by Babis. Hartenberg also runs a chain of reproductive clinics, as well as a flower shop network, Flamengo, and an underwear retailer, Astratex. The footprint of Babis into all corners of Czech life is extensive. And as prime minister, for the second occasion, it is set to grow more extensive.