A weapon vendor for Ukraine amasses the greatest fortune in Eastern Europe's economic landscape
Czechoslovak Group Director Becomes Richest Person in Eastern Europe
In a significant shift in the Eastern European business landscape, Michal Strnad, the 32-year-old director of the Czechoslovak Group (CSG), has been crowned the region's wealthiest individual. According to the Bloomberg Billionaires Index, Strnad's net worth now stands at $17.1 billion.
Previously, Renata Kellnerova, the owner of the PPF Group investment group, held the top spot. However, Strnad's fortune has surpassed Kellnerova's this year. In recent years, Kellnerova had consistently ranked as the country's richest individual, following the death of her husband, Peter Kellner, in a helicopter accident in 2021.
CSG's financial performance has been striking. Last year, the company almost tripled its net profit to 526.1 million euros, while sales more than doubled to around 4 billion euros. The defense sector accounted for 83.6% of these sales.
CSG's revenue from Ukraine amounted to 1.7 billion euros, which is four times higher than in 2023. European orders, excluding Ukraine, accounted for 43.5% of CSG's revenue, while Ukraine accounted for 42.8%.
The Czechoslovak Group, founded by Strnad's father, Yaroslav Strnad, in the early 1990s, initially focused on purchasing old Soviet tanks and other military equipment to sell as scrap metal. Over time, the company shifted its focus to supplying refurbished military vehicles to various countries. The recent surge in demand, particularly from Ukraine during the ongoing conflict, has significantly boosted the company's revenue.
References:[1] The Czechoslovak Group reported revenue of 1.7 billion euros from Ukraine in 2024, four times more than in 2023.
Strnad's wealth expansion, primarily from the successful performance of the Czechoslovak Group, extends to the finance industry, given the significant increase in the company's net profit and sales. The financial growth, particularly in the defense sector, has contributed significantly to Strnad's position as the richest person in Eastern Europe, according to the Bloomberg Billionaires Index.
