The War-profiteering and Sanctions-busting CSG Group
And now Michal Strnad's Czechoslovak Group owns five major U.S. ammunition manufacturers
Thirty two year-old Michal Strnad, the CEO of Czechoslovak Group, has become the richest person in Czechia[1]. It used to be Renáta Kellnerová (PPF investment group), but thanks to Russia’s invasion of Ukraine and the demand it created for ammunition and military hardware both in Ukraine and all across Europe, CSG’s value has tripled in just two years.
Michal’s father and CSG’s founder Jaroslav Strnad (aka the War Dog Millionaire) handed the CEO position to his son in 2018 shortly after the company was outed for selling 152 mm SpGHJ DANA self-propelled artillery and RM-70 Vampire rocket launchers to Azerbaijan in violation of U.S. and E.U. sanctions thanks to the efforts of the Czech Center for Investigative Journalism[2].
When asked about the above-mentioned sale of howitzers and missile launchers, CSG spokesperson Andrej Čírtek replied “None of the companies in the Czechoslovak Group, whether based in the Czech Republic or Slovakia, have ever supplied the military equipment you are asking for or its components to Azerbaijan[3].”
Čírtek was technically correct, but that’s because CSG used Israel as the cut-out. Here’s how the scheme worked.
Real Trade Praha (a Czech-based CSG company) sells Tatra chassis with armored cabins to Elbit Systems in Tel Aviv.
MSM Martin (a Slovakia-based CSG company) purchases the same number of Tatra chassis from Elbit, but now they’re loaded with Command and Control systems added by the Israeli defense contractor.
Once the improved chassis arrive at MSM Martin’s facilities in Bratislava, Slovakia, the company outfits them with self-propelled 152mm artillery and rocket launchers.
Once done, Elbit Systems purchases the completed 152mm SpGHJ DANA self-propelled artillery and RM-70 Vampire rocket launchers from MSM, and then sells them to the Azerbaijani government.
All air transportation between Czechia, Israel, Slovakia, and Azerbaijan was via Silk Way Airlines under diplomatic cover provided by the Azerbaijani embassy in Bulgaria. This was a necessary step when the cargo was military, but it also meant that the cargo plane would bypass all customs inspections.
When you own 100+ different companies, all operating under different names in a dozen different nations, it’s easy to obfuscate the supply chain.
NOTE: MSM Martin, along with its former CEO and shareholder Marián Goga, are under investigation by Slovakian authorities for bribery and money laundering. The proceedings (under ref. no. PPZ-99/NKA-BA3-2020, originally PPZ-233/NKA-BA3-2020) remain ongoing[4].
Swapping Howitzers For Gas
In May of 2024, the Slovak and Azeri governments agreed to a deal that would swap 70 Excalibur Army (a CSG company) howitzers for Azeri gas[5]. This has been made easier due to Russia’s invasion of Ukraine and the resulting U.S. and E.U. sanctions on Russia’s oil and gas revenue, which, in turn, created market opportunities for other energy-producing countries like Azerbaijan to step up and fill the gap. It’s not hard to find examples of Western states either waiving sanctions to fill their unmet energy demand or quietly ignoring them.
Russia’s ZSU-23-4 Shilka modernized by CSG for Azerbaijan
At the ADEX 2024 International Defense Exhibition in Baku, Azerbaijan, the country’s defense industry unveiled a modernized version of the ZSU-23-4 Shilka self-propelled anti-aircraft vehicle. This project, conducted in collaboration with Elbit Systems, CSG Defence, and Sumgait Technologies Park (STP), reflects Azerbaijan’s commitment to strengthening its air defense capabilities in the face of modern threats[6].
CSG Purchases The Kinetic Group
Vista Outdoor sold its Kinetic Group of ammunition manufacturers to CSG after obtaining CFIUS approval and the approval of Vista’s shareholders[7]. It’s a national security issue because Vista was one of the largest providers of ammo to the military and police. The brands include Federal, Remington, CCI, Speer, and Hevi-Shot.
This was a hotly contested acquisition, but in the end, money talked and Vista received $2.2 billion for the Kinetic Group. You can read the letters opposing this sale by Senator Kennedy and then-Senator J.D. Vance.
Will U.S. ammo make its way to Ukraine at CSG’s typical 300% markup?
Will other U.S. ammo manufacturers take this opportunity to market themselves as “American-owned”?
I know that I won’t be buying any of those brands in the future. I’d like to hear if you feel the same way.
Part II of this series will expand on how Western weapons are being delivered to Russia, including U.S.-made, state-of-the-art sniper rifles.
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NOTES
[1] https://www.expats.cz/czech-news/article/bloomberg-unveils-new-richest-czech-sheds-light-on-czech-industry
[2] https://www.investigace.cz/ceske-zbrane-v-azerbajdzanu-i-jak-se-z-podvozku-stalo-delo/
[3] Ibid
[4] CSG Annual Report 2024, p. 357
[5] https://rmx.news/article/czechia-and-slovakia-swap-howitzers-for-azeri-gas/
[6] https://www.armyrecognition.com/news/army-news/army-news-2024/azerbaijan-enhances-anti-aircraft-capabilities-with-modernized-zsu-23-4-shilka-at-adex-2024
[7] https://investors.vistaoutdoor.com/Investors/news/news-details/2024/Vista-Outdoor-Stockholders-Approve-CSG-Transaction-to-Acquire-The-Kinetic-Group/default.aspx