Bulgaria Ranks Second in EU for Russian-Linked Companies

Research by the international rating agency Moody's reveals that the Czech Republic, which accounts for just 2.4% of the EU's population, hosts over a quarter of the approximately 46,000 companies linked to Russia operating across the 27 EU member states. Bulgaria ranks second, with 9,500 Russian-connected companies, while Germany follows in third place with 4,200 such firms.

The Czech Republic has long been a favored destination for Russian businesses. Factors such as historical political and economic ties dating back to communism, linguistic similarities, and regulatory gaps have made it an attractive gateway to EU markets. This trend has intensified, particularly since the deterioration of relations between Moscow and Prague that began in 2021 and worsened following Russia's invasion of Ukraine.

Analysts suggest that the war in Ukraine has further encouraged Russian business activity in the Czech Republic. According to Pavel Havlicek from the Association for International Relations in Prague, engaging in business ventures or purchasing property has become "the easiest way for Russians to secure a residence permit" in the country.

Czech Prime Minister Petr Fiala emphasized the need for a deeper examination of the countries where Russian influence poses potential risks to the unity of the EU and NATO, as well as national security. The Czech counterintelligence agency, BIS, has long warned about internal threats, noting that the presence of numerous Russian-owned companies does not bolster national security.

Concerns have been raised that within the mix of legitimate businesses and individuals, there could be spies or saboteurs. The likelihood of Russian intelligence exploiting these avenues has increased since Prague expelled...