This Man Becomes the Richest Person Due to the Russia-Ukraine War

Geopolitical tensions in recent times have turned a European defence company entrepreneur into one of the richest conglomerates in the Czech Republic. According to The Economist on Wednesday (15/4/2026), the name Michal Strnad was previously not widely known in the Czech Republic or globally. The 33-year-old man, who is the CEO and majority shareholder of the Czechoslovak Group (CSG), has long been known for keeping a low profile and focusing on managing the company founded by his father. However, since taking CSG public on the stock exchange in January with a valuation of around €25 billion, equivalent to US$29 billion, Strnad has begun to attract public attention. His company, which employs around 14,000 people and operates more than 30 production facilities worldwide, has also come into the spotlight. CSG’s performance has surged significantly in recent years. Last year, the company recorded revenue of €6.7 billion, a 12-fold increase from 2021, with about 80% coming from the defence sector. With this achievement, CSG now ranks among the top 10 arms producers in Europe. In fact, the company has become the second-largest ammunition producer on the continent after Germany’s Rheinmetall. CSG’s business boom is inseparable from the impact of the Ukraine war. The company plays a key role in the Czech Ammunition Initiative led by President Petr Pavel to supply bullets and ammunition to Ukraine with support from Western countries. CSG benefited from direct sales to Ukraine, which contributed 27% of total revenue last year. Additionally, demand has increased as European countries replenish their ammunition stocks. Aggressive expansion through acquisitions has further strengthened the company’s position. In 2022, CSG acquired a majority stake in Italy’s Fiocchi, followed by taking over the Kinetic Group in the United States in 2024, and recently announcing the purchase of 49% of shares in Austria’s Hirtenberger Defence Systems. Strnad emphasised that this expansion will continue in the future. He stated that the current moment is one of consolidation in the defence industry, in line with the growing global need for military products. CSG’s ambitions are growing even larger, with a target to become Europe’s largest arms producer. In December, the company signed a seven-year contract worth up to €58 billion to supply ammunition to European Union countries as part of a joint defence strengthening programme. Although around 75% of CSG’s sales come from Europe, the company is also targeting growth in the American market. This global expansion is supported by lower labour costs in the Czech Republic and Slovakia, as well as vertical integration that strengthens the supply chain. Nevertheless, challenges still shadow the company’s growth. The emergence of new players, such as German drone manufacturers, and the potential end of the Ukraine war could pressure future ammunition demand. Beyond business, Strnad is increasing his presence domestically. CSG has become the main sponsor of the Czech Olympic team, while Strnad has also acquired the Viktoria Plzen football club to expand his influence.