Czech company is a risk, let’s not sell it the arms factory, urges Republican senator
In a letter, US Republican Senator James Vance asked US Treasury Secretary Janet Yellen to consider suspending the sale of the Sporting Products ammunition division of US arms manufacturer Vista Outdoor to Czech company Czechoslovak Group (CSG).
The senator cites possible security risks, including alleged ties to Russia. CSG considers the information to be unfounded and untrue and has denied any links to Russian authorities.
“(CSG) is a company with a long history of unfair practices and well-documented ties to entities hostile to the US,” the senator said in a letter, calling on Yellen to assess the potential risks. “This transaction poses obvious risks to our national security,” Vance wrote.
Andrej Čírtek, spokesperson for the Czech holding company, told ČTK that CSG is “a private company committed to selling its products to NATO and EU partner countries” and “cooperates with many leading global defense companies, including (US) Raytheon and General Dynamics European Land Systems.”
The industrial and technology holding company CSG announced the signing of a $1.91 billion (CZK 42.5 billion) acquisition agreement with Vista Outdoor last October. According to CSG representatives, Vista Outdoor is one of the world’s largest manufacturers of small-caliber ammunition, including brands such as Remington, Federal, CCI, and Speer.
“The risks are not related to the size of the transaction,” the senator continues, “CSG has a long and troubling history, most notably its alleged ties to Russian President Vladimir Putin’s inner circle… CSG sponsored a parade in Moscow to help Russian authorities obtain European military technology.”
Vance’s criticism is somewhat surprising given that he sympathizes with former President and apparent Republican candidate for the highest office in the US, Donald Trump. Trump takes a much more lenient stance toward Russia and Putin.
The letter goes on to mention violations of the embargo on arms sales to Azerbaijan. It refers to a report by the Organized Crime and Corruption Reporting Project (OCCRP) that 54 Tatra 815 vehicles were delivered to Azerbaijan. These were first sold to Israel, from where they were transported to Slovakia, where howitzers and rocket launchers were mounted on them, and then returned to Israel.
From there, however, they ended up in Azerbaijan, which then used them in the war against Armenia, according to the website Novinky.cz. CSG also denied violating the embargo, stating that its exports were always carried out on the basis of duly granted licenses.
“Our acquisition of Fiocchi, which manufactures small-caliber ammunition in the US, has successfully passed the review of the US Foreign Investment Committee. Some companies owned by CSG have security clearance from both the Czech Republic and NATO. None of this would be possible for a company with ties to Russia,” said CSG spokesman Čírtek.