Czech MPs and Senators Invest in Arms Makers, Pocket Hundreds of Thousands of Crowns

Ten members of the Czech Parliament — both from the ruling coalition and the opposition — have put money into shares and bonds of the country's two biggest arms manufacturers: Czechoslovak Group, controlled by Michal Strnad, and Colt CZ, whose majority stake belongs to René Holeček. This is revealed in the politicians' asset declarations for last year.

Interest in defence-sector securities among lawmakers has risen noticeably as both companies' businesses have boomed since Russia launched its war against Ukraine.

Who invested how much

The biggest investment came from independent Senator Stanislav Balík, who bought a Czechoslovak Group bond worth one million crowns, saying he did so on his personal banker's advice. "According to my latest statement, I'm still in the red — I haven't seen any return on this investment yet," Balík admitted.

Senator Pavel Karník (Mayors and Independents movement) put 200,000 crowns into the same bonds and has already earned a return — twice receiving 4,887.5 crowns, he says.

Deputy Jan Hrnčíř (SPD) bought a Czechoslovak Group bond back in 2023 for 1.5 million crowns. By his own account, the investment earned him 102,000 crowns the following year and another 51,000 crowns last year — a combined return of 153,000 crowns over two years. Hrnčíř said he made the purchase both to grow his savings and to support a Czech company that plays an important role in domestic industry.

Senator Martin Bednář (ANO) put a total of one million crowns into Colt CZ bonds, also on his personal banker's recommendation. He says the expected annual yield is around 50,000 crowns.

Other investors include Senator David Smoljak (10,000 crowns in Colt CZ bonds), Senator Jiří Drahoš (amount undisclosed), Senator Jan Grulich (748 crowns in shares), Senator Ondřej Šimetka (700 crowns) and Deputy Karel Haas (634 crowns). Deputy David Kasal bought Colt CZ shares worth 198,311 crowns but declined to comment on the deal.

Senator Jan Grulich said he has been investing for about twenty years and holds a diversified portfolio spanning technology, defence, banking and healthcare companies. "I bought a few Colt shares even before it listed on the American market, and overall they've performed quite well in my portfolio," he added.

Why defence stocks have become so lucrative

The success of the arms companies is borne out by their financial results. According to Czechoslovak Group itself, the company's revenue last year reached 162 billion crowns, while profit grew 35.5% year-on-year to roughly 21.3 billion crowns. Colt CZ's profit in 2025 topped 2.044 billion crowns, up 95.7% compared to the year before.

Source: seznamzpravy.cz