Babiš's Agrofert loses 68 million crowns in Czech subsidies

The State Agricultural Intervention Fund (SZIF) has denied companies belonging to Prime Minister Andrej Babiš's Agrofert holding subsidies worth around 68 million crowns. According to the fund, all eight applications from the group's companies were administratively terminated because of a conflict of interest that arose between Babiš's appointment as prime minister and the transfer of Agrofert into a trust fund.

Which companies were left without money

“All eight projects have been administratively terminated,” confirmed SZIF spokeswoman Eva Češpiva. The fund closed seven applications worth a total of around 43 million crowns in May, while the eighth, for 25 million crowns, was withdrawn by the company Lipra Pork itself back in March.

Among those seeking subsidies were the pig farms SPV Pelhřimov and Animo Žatec, the hop-growing firms Lupofyt, TUFA, Zlaté chmelové údolí and Petrohradská, as well as the agricultural company M + A + J. The Ministry of Agriculture's appeals committee also upheld the decision to terminate the applications, though the companies still have the option of turning to an administrative court. “We do not comment on ongoing proceedings,” said Agrofert spokesman Pavel Heřmanský.

Why a few weeks proved decisive

The companies submitted their applications in spring and autumn of last year, when Babiš was not yet part of the government. While the fund was reviewing the documents and preparing the subsidy agreements — a process that usually takes several months — Babiš took office as prime minister on 9 December 2025. Agrofert did not transfer the business into the new trust fund, RSVP Trust, until 20 February 2026. It was precisely this interval that proved decisive for the fate of the applications.

SZIF announced the termination of the procedures as early as 24 February. By then, the law firm Portos had prepared a legal opinion for the fund: according to its conclusions, companies are required to meet the programme's conditions from the moment they submit an application until the subsidy agreement is signed, since during that period the prime minister could in theory influence the fund's decisions. The opinion itself does not require subsidies to be refused — it states that under such circumstances SZIF “is entitled not to grant the relevant subsidies.” The fund made use of that right.

Source: novinky.cz