Czechia faces challenges in addressing risks posed by Russian-owned companies

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Czechia, home to over 12,500 Russian-owned companies, has become the EU state with the highest concentration of such firms, according to Moody's research. This has raised concerns about economic and security risks for the country and its EU neighbors.

Despite strained relations between Moscow and Prague since 2021, Russian businesses have maintained a strong presence in Czechia. Contributing factors include historical ties, language similarities, and gaps in regulatory frameworks. The number of registered Russian entrepreneurs in Czechia grew from 4,303 in early 2022 to more than 5,200 by 2024.

Czech authorities, including the counterintelligence agency BIS, have flagged potential threats related to espionage, sanctions violations, and money laundering. The presence of post-Soviet criminal organizations also adds to concerns, with their activities potentially affecting the country's economy.

Efforts to improve transparency and regulation are underway, but challenges remain. Calls for stronger penalties and better monitoring of ownership structures continue to grow as the government faces pressure to address these risks effectively.