As Czech Prime Minister Andrej Babiš and former Hungarian Prime Minister Viktor Orbán’s friendship deepened, the business operations of Babiš’s Agrofert holding company in Hungary and Romania also grew. Agrofert secured loans worth billions from a bank co-owned by the Hungarian state as well as by Orbán’s childhood friend, and acquired a stake in a company linked to individuals close to the Hungarian government at the time.

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Andrej Babiš founded Agrofert in 1993. Under the 2017 Conflict of Interest Act, he had to transfer Agrofert to trust funds—specifically, AB Private Trust I and AB Private Trust II. However, he retained influence over both funds, as demonstrated by an audit conducted by the European Commission. He was also registered as the ultimate beneficial owner in the Czech Register of Beneficial Owners (ESM). This did not change until October 2025, when Babiš, amid the unresolved conflict-of-interest issue, announced the establishment of another trust, whose trustee (and, according to the ESM, beneficial owner) is attorney Wilfried Reinhard Elbs.

However, because of the conflict of interest still not being fully resolved, as reported by Seznam Zprávy, the EU has currently suspended the payment of subsidies to Agrofert and its subsidiaries. The European Commission is still assessing whether or not Babiš is in a conflict of interest.

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Between 2018 and 2025, funds also flowed into Agrofert from the Chinese Bank of China. This bank is majority-owned by Central Huijin Investment, a state-controlled investment firm, and also has a branch in the Czech Republic — which was established by the Hungarian branch.

Hungary has long maintained exceptionally close ties with China — so much so that the country is often referred to as China’s gateway to Europe. Chinese companies are building significant manufacturing facilities here, such as the automobile plant by BYD planned in Szeged. The policy of rapprochement with the East was pioneered by Orbán. However, following the landslide election victory of the opposition Tisza Party and Péter Magyar’s assumption of the office of Prime Minister in May 2026, Hungarian foreign policy appears to be undergoing something of a course correction with an aim of balancing dependence on China and strengthening ties with the EU.

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Agrofert received loans worth hundreds of millions of crowns from the Hungarian branch of the Bank of China. In 2022, for example, the loan worth was €35.8 million (CZK 880.1 million). Agrofert has not yet published the value of the loans for 2025.

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