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Andrej Babiš, the self-styled tycoon who secured victory in the recent Czech election, has refused to sell his extensive business interests, while asserting he will resolve a conflict of interest that might block him from taking the position of prime minister.

Position on Business Holdings

Babiš, whose ANO party emerged victorious in the autumn election but did not secure a parliamentary majority, stated in a social media post that he would not divest his Agrofert conglomerate, which is active in farming, food production, and chemical industries.

“I have repeatedly said I will not sell Agrofert. I have consistently said I will resolve the conflict of interest in compliance with Czech and European laws,” the billionaire remarked. “This is not like selling a roll in a bakeshop.”

Head of State's Requirement

The head of state, Petr Pavel, announced that the elderly political figure must clarify openly how he will eliminate ethical conflicts stemming from his business activities before assuming the role of premier.

The national charter “explicitly requires the president to take into account the potential occurrence of a conflict of interest and the ways to address it” when appointing government ministers, the presidential administration noted.

The head of state “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, noting that Pavel was prepared to appoint Babiš as premier “immediately” once the matter was resolved.

Corporate Activities and Legal Concerns

Babiš's several hundred firms, primarily under the Agrofert group, function in the Czech Republic and other regional states, receiving substantial funds in domestic and European agricultural and other grants, as well as government deals.

Under national legislation, cabinet members are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a conflict of interest, Babiš must either sell, decline public contracts, or not enter government.

Previous Tenure and Current Plans

Babiš affirmed he would “abide by the laws” if appointed as premier, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always criticise me regardless”.

During his first term as prime minister, from 2017 to 2021, Babiš faced multiple legal battles and an EU investigation over potential conflicts of interest. He placed his holdings into trust funds, while keeping certain control over them.

A judicial body and the EU executive both determined that this was insufficient. Babiš stated recently that he was again the sole owner of Agrofert and insisted he was “implementing measures” to avoid a ethical problem, but refused to disclose details.

Coalition Agreement and Foreign Policy Implications

The wealthy politician has concluded a coalition agreement with two minor right-leaning groups, the far-right, Russia-friendly SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.

The incoming administration, if approved, is expected to bolster the populist movement in the region and might strain western support for Ukraine – although Babiš has contacted Ukraine’s president, Volodymyr Zelenskyy, to assure him of Czech support.

Pavel, who as head of state has a role for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a pledge to meeting alliance duties.

The head of state has previously stated he would not approve any ministerial nominees who might doubt the nation's EU and Nato commitments, a requirement that the ultra-conservative party has said it will meet by nominating independent technocrats.