Czech Arms Producers Supplying Ukraine Face Banking Discrimination, Loan Cancellations, and Family Account Closures

Czech arms manufacturers are facing growing obstacles from domestic banks despite the sector’s expanding role in Europe’s defense and support for Ukraine, with smaller companies bearing the brunt of what industry figures describe as indiscriminate financial discrimination, according to an investigation by Aktuálně.cz, posted on December 31.

While large defense groups continue to secure billion-crown loans, smaller arms producers report account closures, loan refusals, and demands for sensitive military contracts that cannot legally be disclosed, even when companies hold all required state licenses and supply the Czech army or Ukraine, Aktuálně.cz reported.

In some cases, banks have also shut down accounts belonging to family members of business owners linked to arms production, creating what company representatives describe as existential risks.

Economist Petr Bartoň of the Natland investment group told Aktuálně.cz that banks effectively maintain two types of “blacklists,” driven either by EU-level risk classifications or by concerns about reputational pressure from customers and ESG standards, with the defense sector increasingly falling into the latter category.

Read more

Category

Anti-Fake

The Private Putin Army in Europe

Oct 24, 2025 17:35

Legal experts cited by the outlet said such practices have intensified since Russia’s full-scale invasion of Ukraine in 2022, even as arms production has become central to European security.

Attempts to legally prohibit banking discrimination against the arms industry have so far failed in parliament, leaving companies dependent on a handful of institutions or state-owned banks for basic financial services, Aktuálně.cz reported.

Previously, it was reported that Czechia`s Security and Information Service (BIS) has launched an investigation into local companies that may have exported equipment to Russia for weapons manufacturing—a move prompted by a warning from Ukrainian President Volodymyr Zelenskyy, iRozhlas reported.

Truth is Under Attack

Help our reporters investigate lies, verify facts, and deliver truth from Ukraine’s frontlines.

DEFEND THE TRUTH