Anton, a 44-year-old Russian soldier who heads a workshop responsible for
repairing and supplying drones, was at his kitchen table when he learned last
month that Elon Musk’s SpaceX had cut off access to Starlink terminals used by
Russian forces. He scrambled for alternatives, but none offered unlimited
internet, data plans were restrictive, and coverage did not extend to the areas
of Ukraine where his unit operated.
It’s not only American tech executives who are narrowing communications options
for Russians. Days later, Russian authorities began slowing down access
nationwide to the messaging app Telegram, the service that frontline troops use
to coordinate directly with one another and bypass slower chains of command.
“All military work goes through Telegram — all communication,” Anton, whose name
has been changed because he fears government reprisal, told POLITICO in voice
messages sent via the app. “That would be like shooting the entire Russian army
in the head.”
Telegram would be joining a home screen’s worth of apps that have become useless
to Russians. Kremlin policymakers have already blocked or limited access to
WhatsApp, along with parent company Meta’s Facebook and Instagram, Microsoft’s
LinkedIn, Google’s YouTube, Apple’s FaceTime, Snapchat and X, which like SpaceX
is owned by Musk. Encrypted messaging apps Signal and Discord, as well as
Japanese-owned Viber, have been inaccessible since 2024. Last month, President
Vladimir Putin signed a law requiring telecom operators to block cellular and
fixed internet access at the request of the Federal Security Service. Shortly
after it took effect on March 3, Moscow residents reported widespread problems
with mobile internet, calls and text messages across all major operators for
several days, with outages affecting mobile service and Wi-Fi even inside the
State Duma.
Those decisions have left Russians increasingly cut off from both the outside
world and one another, complicating battlefield coordination and disrupting
online communities that organize volunteer aid, fundraising and discussion of
the war effort. Deepening digital isolation could turn Russia into something
akin to “a large, nuclear-armed North Korea and a junior partner to China,”
according to Alexander Gabuev, the Berlin-based director of the Carnegie Russia
Eurasia Center.
In April, the Kremlin is expected to escalate its campaign against Telegram —
already one of Russia’s most popular messaging platforms, but now in the absence
of other social-media options, a central hub for news, business and
entertainment. It may block the platform altogether. That is likely to fuel an
escalating struggle between state censorship and the tools people use to evade
it, with Russia’s place in the world hanging in the balance.
“It’s turned into a war,” said Mikhail Klimarev, executive director of the
internet Protection Society, a digital rights group that monitors Russia’s
censorship infrastructure. “A guerrilla war. They hunt down the VPNs they can
see, they block them — and the ‘partisans’ run, build new bunkers, and come
back.”
THE APP THAT RUNS THE WAR
On Feb. 4, SpaceX tightened the authentication system that Starlink terminals
use to connect to its satellite network, introducing stricter verification for
registered devices. The change effectively blocked many terminals operated by
Russian units relying on unauthorized connections, cutting Starlink traffic
inside Ukraine by roughly 75 percent, according to internet traffic analysis
by Doug Madory, an analyst at the U.S. network monitoring firm Kentik.
The move threw Russian operations into disarray, allowing Ukraine to make
battlefield gains. Russia has turned to a workaround widely used before
satellite internet was an option: laying fiber-optic lines, from rear areas
toward frontline battlefield positions.
Until then, Starlink terminals had allowed drone operators to stream live video
through platforms such as Discord, which is officially blocked in Russia but
still sometimes used by the Russian military via VPNs, to commanders at multiple
levels. A battalion commander could watch an assault unfold in real time and
issue corrections — “enemy ahead” or “turn left” — via radio or Telegram. What
once required layers of approval could now happen in minutes.
Satellite-connected messaging apps became the fastest way to transmit
coordinates, imagery and targeting data.
But on Feb. 10, Roskomnadzor, the Russian communications regulator, began
slowing down Telegram for users across Russia, citing alleged violations of
Russian law. Russian news outlet RBC reported, citing two sources, that
authorities plan to shut down Telegram in early April — though not on the front
line.
In mid-February, Digital Development Minister Maksut Shadayev said the
government did not yet intend to restrict Telegram at the front but hoped
servicemen would gradually transition to other platforms. Kremlin spokesperson
Dmitry Peskov said this week the company could avoid a full ban by complying
with Russian legislation and maintaining what he described as “flexible contact”
with authorities.
Roskomnadzor has accused Telegram of failing to protect personal data, combat
fraud and prevent its use by terrorists and criminals. Similar accusations have
been directed at other foreign tech platforms. In 2022, a Russian court
designated Meta an “extremist organization” after the company said it would
temporarily allow posts calling for violence against Russian soldiers in the
context of the Ukraine war — a decision authorities used to justify blocking
Facebook and Instagram in Russia and increasing pressure on the company’s other
services, including WhatsApp.
Telegram founder Pavel Durov, a Russian-born entrepreneur now based in the
United Arab Emirates, says the throttiling is being used as a pretext to push
Russians toward a government-controlled messaging app designed for surveillance
and political censorship.
That app is MAX, which was launched in March 2025 and has been compared to
China’s WeChat in its ambition to anchor a domestic digital ecosystem.
Authorities are increasingly steering Russians toward MAX through employers,
neighborhood chats and the government services portal Gosuslugi — where citizens
retrieve documents, pay fines and book appointments — as well as through banks
and retailers. The app’s developer, VK, reports rapid user growth, though those
figures are difficult to independently verify.
“They didn’t just leave people to fend for themselves — you could say they led
them by the hand through that adaptation by offering alternatives,” said Levada
Center pollster Denis Volkov, who has studied Russian attitudes toward
technology use. The strategy, he said, has been to provide a Russian or
state-backed alternative for the majority, while stopping short of fully
criminalizing workarounds for more technologically savvy users who do not want
to switch.
Elena, a 38-year-old Yekaterinburg resident whose surname has been withheld
because she fears government reprisal, said her daughter’s primary school moved
official communication from WhatsApp to MAX without consulting parents. She
keeps MAX installed on a separate tablet that remains mostly in a drawer — a
version of what some Russians call a “MAXophone,” gadgets solely for that app,
without any other data being left on those phones for the (very real) fear the
government could access it.
“It works badly. Messages are delayed. Notifications don’t come,” she said. “I
don’t trust it … And this whole situation just makes people angry.”
THE VPN ARMS RACE
Unlike China’s centralized “Great Firewall,” which filters traffic at the
country’s digital borders, Russia’s system operates internally. Internet
providers are required to route traffic through state-installed deep packet
inspection equipment capable of controlling and analyzing data flows in real
time.
“It’s not one wall,” Klimarev said. “It’s thousands of fences. You climb one,
then there’s another.”
The architecture allows authorities to slow services without formally banning
them — a tactic used against YouTube before its web address was removed from
government-run domain-name servers last month. Russian law explicitly provides
government authority for blocking websites on grounds such as extremism,
terrorism, illegal content or violations of data regulations, but it does not
clearly define throttling — slowing traffic rather than blocking it outright —
as a formal enforcement mechanism. “The slowdown isn’t described anywhere in
legislation,” Klimarev said. “It’s pressure without procedure.”
In September, Russia banned advertising for virtual private network services
that citizens use to bypass government-imposed restrictions on certain apps or
sites. By Klimarev’s estimate, roughly half of Russian internet users now know
what a VPN is, and millions pay for one. Polling last year by the Levada Center,
Russia’s only major independent pollster, suggests regular use is lower, finding
about one-quarter of Russians said they have used VPN services.
Russian courts can treat the use of anonymization tools as an aggravating factor
in certain crimes — steps that signal growing pressure on circumvention
technologies without formally outlawing them. In February, the Federal
Antimonopoly Service opened what appears to be the first case against a media
outlet for promoting a VPN after the regional publication Serditaya Chuvashiya
advertised such a service on its Telegram channel.
Surveys in recent years have shown that many Russians, particularly older
citizens, support tighter internet regulation, often citing fraud, extremism and
online safety. That sentiment gives authorities political space to tighten
controls even when the restrictions are unpopular among more technologically
savvy users.
Even so, the slowdown of Telegram drew criticism from unlikely quarters,
including Sergei Mironov, a longtime Kremlin ally and leader of the Just Russia
party. In a statement posted on his Telegram channel on Feb. 11, he blasted the
regulators behind the move as “idiots,” accusing them of undermining soldiers at
the front. He said troops rely on the app to communicate with relatives and
organize fundraising for the war effort, warning that restricting it could cost
lives. While praising the state-backed messaging app MAX, he argued that
Russians should be free to choose which platforms they use.
Pro-war Telegram channels frame the government’s blocking techniques as sabotage
of the war effort. Ivan Philippov, who tracks Russia’s influential military
bloggers, said the reaction inside that ecosystem to news about Telegram has
been visceral “rage.”
Unlike Starlink, whose cutoff could be blamed on a foreign company, restrictions
on Telegram are viewed as self-inflicted. Bloggers accuse regulators of
undermining the war effort. Telegram is used not only for battlefield
coordination but also for volunteer fundraising networks that provide basic
logistics the state does not reliably cover — from transport vehicles and fuel
to body armor, trench materials and even evacuation equipment. Telegram serves
as the primary hub for donations and reporting back to supporters.
“If you break Telegram inside Russia, you break fundraising,” Philippov said.
“And without fundraising, a lot of units simply don’t function.”
Few in that community trust MAX, citing technical flaws and privacy concerns.
Because MAX operates under Russian data-retention laws and is integrated with
state services, many assume their communications would be accessible to
authorities.
Philippov said the app’s prominent defenders are largely figures tied to state
media or the presidential administration. “Among independent military bloggers,
I haven’t seen a single person who supports it,” he said.
Small groups of activists attempted to organize rallies in at least 11 Russian
cities, including Moscow, Irkutsk and Novosibirsk, in defense of Telegram.
Authorities rejected or obstructed most of the proposed demonstrations — in some
cases citing pandemic-era restrictions, weather conditions or vague security
concerns — and in several cases revoked previously issued permits. In
Novosibirsk, police detained around 15 people ahead of a planned rally. Although
a small number of protests were formally approved, no large-scale demonstrations
ultimately took place.
THE POWER TO PULL THE PLUG
The new law signed last month allows Russia’s Federal Security Service to order
telecom operators to block cellular and fixed internet access. Peskov, the
Kremlin spokesman, said subsequent shutdowns of service in Moscow were linked to
security measures aimed at protecting critical infrastructure and countering
drone threats, adding that such limitations would remain in place “for as long
as necessary.”
In practice, the disruptions rarely amount to a total communications blackout.
Most target mobile internet rather than all services, while voice calls and SMS
often continue to function. Some domestic websites and apps — including
government portals or banking services — may remain accessible through
“whitelists,” meaning authorities allow certain services to keep operating even
while broader internet access is restricted. The restrictions are typically
localized and temporary, affecting specific regions or parts of cities rather
than the entire country.
Internet disruptions have increasingly become a tool of control beyond
individual platforms. Research by the independent outlet Meduza and the
monitoring project Na Svyazi has documented dozens of regional internet
shutdowns and mobile network restrictions across Russia, with disruptions
occurring regularly since May 2025.
The communications shutdown, and uncertainty around where it will go next, is
affecting life for citizens of all kinds, from the elderly struggling to contact
family members abroad to tech-savvy users who juggle SIM cards and secondary
phones to stay connected. Demand has risen for dated communication devices —
including walkie-talkies, pagers and landline phones — along with paper maps as
mobile networks become less reliable, according to retailers interviewed by RBC.
“It feels like we’re isolating ourselves,” said Dmitry, 35, who splits his time
between Moscow and Dubai and whose surname has been withheld to protect his
identity under fear of governmental reprisal. “Like building a sovereign grave.”
Those who track Russian public opinion say the pattern is consistent: irritation
followed by adaptation. When Instagram and YouTube were blocked or slowed in
recent years, their audiences shrank rapidly as users migrated to alternative
services rather than mobilizing against the restrictions.
For now, Russia’s digital tightening resembles managed escalation rather than
total isolation. Officials deny plans for a full shutdown, and even critics say
a complete severing would cripple banking, logistics and foreign trade.
“It’s possible,” Klimarev said. “But if they do that, the internet won’t be the
main problem anymore.”
Tag - Fraud
A federal judge has quashed the Justice Department’s criminal probe into Federal
Reserve Chair Jerome Powell’s Senate testimony regarding the central bank’s
headquarters renovation, writing that the grand jury subpoenas were a “mere
pretext” to pressure the Fed.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose
is to harass and pressure Powell either to yield to the President or to resign
and make way for a Fed Chair who will,” Chief U.S. District Judge James Boasberg
wrote. “The Government has offered no evidence whatsoever that Powell committed
any crime other than displeasing the President.”
U.S. Attorney for D.C. Jeanine Pirro, whose office led the investigation, said
in a press conference afterward that she would appeal the decision. She sharply
criticized Boasberg, saying he “put himself at the entrance door to the grand
jury, slamming that door shut, irrespective of the legal process, and thus
preventing the grand jury from doing the work that it does.”
“This process has been arbitrarily undermined by an activist judge,” she said.
Pirro’s plan to appeal the decision could further delay the confirmation process
of President Donald Trump’s pick to replace Powell, former Fed Gov. Kevin Warsh.
Warsh’s nomination has been blocked by outgoing Sen. Thom Tillis until the
investigation into Powell is resolved. The North Carolina Republican warned the
administration on Friday afternoon against appealing the decision.
“We all know how this is going to end, and the D.C. U.S. Attorney’s Office
should save itself further embarrassment and move on,” Tillis posted on X.
“Appealing the ruling will only delay the confirmation of Kevin Warsh as the
next Fed Chair.”
The White House did not immediately respond to a request for comment.
Trump has severely criticized Powell for more than a year for his reluctance to
lower interest rates, with the president accusing him of holding back the
economy. Powell has said the subpoenas were part of Trump’s pressure campaign to
force him to cut borrowing costs.
The investigation into Powell’s testimony on the status of a costly renovation
of the central bank’s headquarters kicked off a firestorm that threatens Trump’s
aims to stack the Fed board with appointees who share his views on lowering
short-term borrowing costs. Powell’s term as chair expires in May, and Pirro’s
vow to appeal the decision could prolong a legal clash that will keep the Fed’s
future leadership up in the air.
Tillis, who has vowed to block any Fed picks until the Powell probe is publicly
dropped, sits on the Senate Banking Committee, which has jurisdiction over Fed
nominations. Republicans have a 13-11 majority on the committee, meaning that
Tillis’s vote is needed to advance any nominee to the Senate floor if every
Banking Committee Democrat votes against them.
In a hearing before the committee last June, the panel’s chair, Tim
Scott (R-SC), asked Powell about the status of the Fed’s renovations after a New
York Post article characterized them as akin to the “Palace of Versailles.”
Powell told senators that “there’s no new marble. There are no special
elevators. There are no new water features. There’s no beehives, and there’s no
roof terrace gardens.”
That caught the eye of Federal Housing Finance Agency Director Bill Pulte, who
urged lawmakers to look into the matter, and the White House launched its own
probe into the project last summer.
Several Senate Banking Republicans — including Scott — have said they do not
believe Powell committed a crime with his testimony. Sen. Cynthia
Lummis (R-Wyo.), a Powell critic, said in a statement that the Fed chief “was
wildly underprepared for his testimony, but, as I have said before, I’m not sure
it rose to the criminal level.”
Wall Street executives and top lawmakers have repeatedly cautioned Trump against
actions that might undermine the central bank’s ability to independently set
interest rates, which bolsters its credibility and is viewed as a stabilizing
force for global markets. Trump has also tried to fire Fed Gov. Lisa Cook over
unsubstantiated allegations of mortgage fraud — her fate will be determined by
the Supreme Court — and the president has flirted numerous times with attempting
to dismiss Powell.
In January, Powell posted an extraordinary two-minute video to the central
bank’s website claiming that the DOJ’s subpoenas represented a politically
motivated attempt to pressure the central bank into lowering interest rates. The
threat of criminal charges was a “consequence of the Federal Reserve setting
interest rates based on our best assessment of what will serve the public,
rather than following the preferences of the president,” he said.
The move was unusual because Powell has steadfastly refused to respond to
Trump’s blizzard of insults since he returned to the White House. The president
has publicly questioned Powell’s intelligence and competence, and has said his
monetary policy decisions are driven by politics.
In her combative press conference, Pirro called the judge’s decision on Friday
“outrageous.”
She cited a Supreme Court precedent that grand juries can investigate mere
rumors. And she dismissed suggestions that she should look skeptically at
allegations that may be politically motivated.
“I’ll take a case from the devil if you can give me information that will lead
me to possibly find a crime,” she said. “It doesn’t matter where the case comes
from.”
While Pirro suggested it is exceptional for a judge to block a grand jury
subpoena, federal court rules allow them to do so if they believe a subpoena is
“unreasonable or oppressive.”
In his ruling, issued Wednesday and unsealed on Friday, Boasberg noted that
numerous court precedents authorize judges to quash a subpoena when its “sole or
dominant” purpose is improper.
Boasberg, an appointee of President Barack Obama, conceded that the subpoenas
issued to the Fed were relevant to a criminal investigation. But he said their
obvious connection to attempts to exert unlawful pressure on Powell and other
members of the Fed’s Board of Governors rendered the subpoenas unenforceable.
“The President spent years essentially asking if no one will rid him of this
troublesome Fed Chair. He then suggested a specific line of investigation into
him,” the judge wrote. “The President’s appointed prosecutor promptly complied.”
Boasberg’s rejection of the subpoenas to the Fed is just the latest clash
between the chief judge of the federal district court in the capital and the
Trump administration. The judge’s earlier rulings in a dispute over Trump’s
drive to rapidly deport alleged gang members under a two-century-old wartime
authority led Trump to call for Boasberg’s impeachment.
Some House members embarked on that effort last year, but it has not progressed.
Pirro said that in addition to an appeal, which would go to the D.C. Circuit
Court of Appeals, prosecutors intend to ask Boasberg to reconsider his ruling
because it included some inaccurate dates. That could delay any appeal because
judges typically cannot alter rulings while they are under appeal.
LONDON — Western governments are being urged to clamp down on cryptocurrency as
new research suggests $350 billion has been laundered by criminals and hostile
states using the technology in the past two decades.
A new report for the Henry Jackson Society think tank, shared with POLITICO,
finds that worldwide money laundering has shifted dramatically towards
cryptocurrency in recent years — with the United States, Russia and Britain
seeing the highest number of confirmed cases.
The report draws on a database of 164 publicly identified and documented money
laundering cases between 2005 and 2025. It was compiled by Alexander Browder,
son of American-British financier and anti-corruption campaigner Bill Browder.
Alexander Browder said that the true figure could even be “many multiples”
higher than the hundreds of billions that have been identified.
The study also sheds light on lax enforcement of money laundering powered by
crypto. It finds that 79 percent of cases have resulted in no convictions, while
only 29 percent of funds have been recovered by authorities.
The researchers, based in the U.K., call on the British government to set up a
new Cryptocurrency Asset Recovery Office. This would hold recovered funds to
transfer back to their rightful owners.
Chris Coghlan, a member of the House of Commons Treasury Select Committee told
POLITICO: “The sophistication and speed of crypto currency money launderers is
much higher and faster than our government’s ability to react.
“As a result, our sanctions and law enforcement are in an increasingly weak
position to stop it. This report highlights the need for a robust policy
response to this pressing issue.”
POLITICAL ISSUE
Cryptocurrency is increasingly becoming a regulatory battleground in both the
U.K. and the U.S.
In America, President Donald Trump has come under fire for his ties to the
industry. In April last year the U.S. disbanded a Department for Justice unit
tasked with investigating crypto-related fraud.
In Britain, Nigel Farage’s right-wing Reform UK became the first major British
political party to accept crypto donations. The British government is
considering a ban on political donations through crypto. But cryptocurrency
exchanges will not be regulated by the country’s Financial Conduct Authority
until 2027.
Much of Britain’s concern about crypto comes from Russia’s recent embrace of the
currency as an alternate means of financing its war economy following the
invasion of Ukraine. Browder said Russia is now successfully evading sanctions
using cryptocurrency — and that it is becoming a global epicenter for its
illicit use.
“Half of the illicit exchanges identified in the database have been based in
Russia. Four out of five major ransomware groups in the database have been based
in Russia.
“It is the home to crypto darknet marketplaces such as Hydra — one of the
largest in the world, which had processed over $5 billion in illicit funds
through the sale of harmful drugs and other illegal services,” he warned.
Browder added that British, American and EU policymakers have so far been unable
to tackle the problem: “Criminals and rogue regimes are basically running
circles around U.K., U.S. and EU prosecutors.”
“Criminals are able to escape without legal consequences, and victims are left
without redress and adequate compensation.”
Andrej Babiš built his fortune making fertilizer. But another, lesser-known arm
of his business empire has helped bring more than 170,000 children into the
world across Europe.
The Czech prime minister’s name is rarely attached to FutureLife, one of
Europe’s largest IVF clinic networks, spanning 60 clinics in 16 countries from
Prague to Madrid to Dublin.
But is just one part of a commercial empire that spans nitrogen-based
fertilizers and industrial farms, assisted reproduction, online lingerie stores
and more. And the Czech leader holds this portfolio while sitting at the table
negotiating EU budgets, health rules and industrial policy.
Yet in Brussels, nobody can answer a deceptively simple question: Which of the
companies associated with Babiš receives EU money — and how much?
“We might be giving him money and we don’t even know,” said Daniel Freund, a
German Green lawmaker who led the European Parliament’s inquiries into Babiš
during his first term as Czechia’s prime minister from 2017 to 2021. In 2021,
the Parliament overwhelmingly adopted a resolution condemning Babiš over
conflicts of interest involving EU subsidies and companies he founded.
Under EU rules, member countries are responsible for checking conflicts of
interest and reporting on who ultimately benefits from EU funds. But there is no
single EU-wide register linking ultimate beneficial owners to all EU payments —
making cross-border oversight difficult.
The issue has resurfaced as Babiš returns to power and once again takes a seat
among other EU heads of state and government in the European Council. In that
exclusive body, he helps negotiate the bloc’s long-term budget, agricultural
subsidies and other funding frameworks that shape the sectors in which his
companies might operate.
For years, debates over Babiš’s conflicts of interest have revolved around a
single name — Agrofert, the agro-industrial empire that EU and Czech auditors
found had improperly received over €200 million in EU and national agricultural
subsidies. The payment suspensions and repayment demands continue: This week,
Czech authorities halted some agricultural subsidies to Agrofert pending a fresh
legal review of the company’s compliance with conflict-of-interest rules.
Babiš has consistently rejected accusations of wrongdoing. His office said he
“follows all binding rules” and that “there is no conflict of interests at the
moment,” adding that Agrofert shares are managed by independent experts and that
he “is not and will never be the owner of Agrofert shares.”
In a parliamentary debate earlier this month, he dismissed the controversy as
politically motivated, accusing opponents of having “invented” the
conflict-of-interest issue because they were unable to defeat him at the ballot
box.
But critics argue that the renewed focus on Agrofert obscures a far broader
commercial footprint.
“Agrofert is only half of the problem,” said Petr Bartoň, chief economist at
Natland, a private investment group based in Prague. “The law does not say ‘thou
shalt not benefit from companies called Agrofert.’ It says you must not benefit
from any companies subsidized by or receiving public money.”
The concern, critics argue, arises from the sheer number of companies and
sectors with which Babiš remains associated.
THE INVISIBLE PILLAR
Separate from Agrofert sits Hartenberg Holding, a private-equity vehicle Babiš
co-founded with financier Jozef Janov in 2013. He holds a majority stake in the
fund through SynBiol, a company he fully owns and which, unlike Agrofert, has
not been transferred into any trust arrangement.
With assets worth around €600 million, Hartenberg invests in health care,
retail, aviation and real estate.
Yet it has attracted only a fraction of the scrutiny directed at the
agricultural holding, according to Lenka Stryalová of the Czech public-spending
watchdog Hlídač státu.
“Alongside Agrofert, there is a second, less visible pillar of Babiš’s business
activities that is not currently intended to be placed into blind trusts,” she
said.
That pillar includes FutureLife, whose 2,100 specialists help individuals and
couples conceive across Czechia, Slovakia, the U.K., Ireland, Romania, the
Netherlands, Spain, Italy and Estonia. The clinics operate in a policy-sensitive
space shaped primarily by national health reimbursement systems and insurance
rules, rather than decisions taken directly in Brussels. Those systems, however,
function within a broader EU regulatory framework governing cross-border care
and state aid.
Hartenberg owns 50.1 percent of FutureLife. The company said in a statement that
Babiš has no operational role, no board seat and no decision-making authority.
It added that FutureLife clinics operate like other health care providers and,
where applicable, are reimbursed by national public health insurance systems
under the same rules as other providers.
Like thousands of other companies, some FutureLife entities received
pandemic-era wage support under Czechia’s Covid relief programs. There is no
evidence of any irregularity in those payments.
But health care is only one corner of the portfolio.
Through Hartenberg, Babiš-linked capital also flows into everyday retail life.
Astratex, a Czech-founded online lingerie retailer that began as a catalogue
business before moving fully online in 2005, now operates localized e-shops
across roughly 10 European markets and generates tens of millions of euros in
annual revenue. Hartenberg acquired a controlling stake in 2018, marking one of
the fund’s early expansions into cross-border digital retail.
In Czechia, shoppers may also encounter Flamengo florist stands, a network of
around 200 outlets selling bouquets, potted plants and funeral flower
arrangements inside supermarkets and shopping malls. Hartenberg acquired a
majority stake in the chain in 2019, backing its expansion and push into online
delivery. Other online businesses linked to Babiš include sports equipment, and
wool and textile retailers.
Through Hartenberg, Babiš has also invested in urban development and real
estate.
Hartenberg was an early majority investor in the project company behind Prague’s
Císařská vinice, a premium hillside development of villas and apartments near
Ladronka park, partnering with developer JRD to finance construction.
JRD Development Group said the project company is now 100 percent owned by JRD
and that neither Babiš nor companies linked to him hold any direct or indirect
ownership interest. The firm added that the development has not received EU
funds or other public financial support.
None of the Hartenberg businesses have ever been accused of misusing EU
subsidies.
But the long-running “Stork’s Nest” case, first investigated more than a decade
ago and still unresolved, shows how difficult it can be to follow Babiš’s
business web.
The alleged fraud involved a €2 million EU subsidy provided in 2008 to the
31-room Čapí Hnízdo (Stork’s Nest) recreational and conference center in central
Czechia, then part of Babiš’s Agrofert conglomerate. Prosecutors have accused
Babiš and his associates of manipulating the center’s ownership and concealing
his control of the business in order to obtain the subsidy. Babiš has always
denied wrongdoing, telling POLITICO in 2019 that the case was politically
motivated.
He was acquitted in 2023, but an appeals court later overturned that verdict and
ordered a retrial, which remains pending.
Today, the resort itself is no longer part of Agrofert. It is owned by Imoba, a
company fully controlled by Babiš’s SynBiol, the same holding that controls
Hartenberg. Hartenberg itself holds no stake in Stork’s Nest.
Taken together, Babis’ non-Agrofert portfolio spans health care reimbursement
systems, online retail regulation, aviation safety oversight, real estate and
city-planning decisions across multiple EU jurisdictions.
In theory, a Czech consumer could encounter Babiš-linked companies at nearly
every stage of life: the fertilizer on the fields that grow the wheat, the bread
on the supermarket shelf, the bouquet for the wedding, the apartment in Prague
and even the clinic that helps bring the next generation into the world. And at
the end, perhaps, the flowers once more.
WHY BRUSSELS CAN’T KEEP TRACK
During Babiš’s previous term, the European Commission concluded that trust
arrangements he put in place did not eliminate his effective control over
Agrofert. A leaked legal document reported by POLITICO this month has since
renewed accusations that his latest trust setup does not fully address those
concerns either.
Babiš rejects that interpretation, saying the arrangement complies with Czech
and EU law and insisting he has done “much more than the law required” to
distance himself from the company.
The Commission said it does not maintain a consolidated list of companies
ultimately owned or controlled by Babiš across member countries. Nor does it
hold a comprehensive accounting of EU funds received by companies linked to him
beyond Agrofert.
Instead, responsibility for collecting beneficial ownership data lies primarily
with national authorities implementing EU funds. The Commission can audit how
member countries manage conflicts of interest and take measures to protect the
EU budget if needed, but it does not itself aggregate that information across
borders.
The Commission confirmed to POLITICO that it has asked Czech authorities to
explain how conflicts of interest are being prevented in relation to companies
under Babiš’s control beyond Agrofert.
Czech Regional Development Minister Zuzana Mrázová on Thursday acknowledged
receiving the Commission’s letter earlier this month, saying it will be answered
in line with applicable legislation and adding that, in her view, the prime
minister has done everything necessary to comply with Czech and EU law.
“From my perspective, there is no conflict of interest,” she said.
Freund argues that the corporate complexity has become a problem in its own
right.
“The tracking of beneficial owners or beneficial recipients of EU funds is at
the moment very difficult or sometimes even impossible,” said the EU lawmaker.
Part of the difficulty lies in Europe’s fragmented ownership registers, which
exist on paper across the EU but don’t speak the same language or even list the
same owners.
Freund described them as “inconsistent,” with some national databases listing
Babiš in connection with certain companies while others do not.
Babiš’s defenders argue that his steps regarding Agrofert go beyond what Czech
law strictly requires. Critics counter that the law was never written with
billionaires running multi-sector empires in mind and that resolving the
conflict of interest identified by auditors in relation to Agrofert does not
settle the wider concerns raised by the scale of his business interests.
“For some reason, the perception has been created that once Agrofert is
resolved, that resolves the conflict of interest,” Bartoň said. “As if the
president were the arbiter of what needs and needs not be dealt with.”
In reality, many companies owned through Hartenberg and Synbiol structures
continue to operate in areas shaped by public spending, regulation and political
decisions without being part of any divestment or trust arrangement.
Those assets “still not only [pose] conflict of interest,” said Bartoň, but they
are “not even in the process of being dealt with.”
From fertilizer to fertility to funeral flowers, the structure is easy enough to
trace in everyday life.
It is far harder to trace on paper.
Ketrin Jochecová contributed to this report.
LONDON — The European Commission has referred disgraced British politician Peter
Mandelson to fraud investigators over his links to the convicted sex offender
Jeffrey Epstein.
The Commission is assessing whether Mandelson, a former EU trade commissioner,
broke the bloc’s rules after recently released files suggested he gave Epstein
information about a €500 billion bailout to save the euro in 2010.
A spokesperson for the European Commission told POLITICO: “Given the
circumstances, and the significant amount of documents made available publicly,
the European Commission also asked OLAF [the European anti-fraud office] on 18
February to look into the matter. Pending the ongoing assessment, we are not in
a position to comment further.”
Mandelson’s lawyers did not immediately respond to a request for comment. He has
previously said he was wrong to have continued his association with Epstein, who
died in 2019, and apologized “unequivocally” to Epstein’s victims. Mandelson has
said none of the Epstein emails released by the U.S. Department of Justice
“indicate wrongdoing or misdemeanor on my part.”
Mandelson served as a European commissioner between 2004 and 2008 and is now at
the center of a scandal that has rocked the government of Keir Starmer in
Britain.
Police arrested Mandelson on suspicion of misconduct in public office on Monday,
before releasing him on bail. Mandelson’s lawyers have previously said he is
cooperating with the U.K. police investigation, and that his overriding priority
is to “clear his name.”
Recently published files suggest Mandelson helped provide Epstein with
information about a €500 billion bailout to save the euro in 2010. Mandelson
was a senior British minister at the time and Epstein a financier.
The Commission has previously said that former Commissioners remain bound by
rules on ethical conduct.
LONDON — British politicians laid into the Trump administration Thursday over
far-right activist Tommy Robinson’s visit to the United States, which included a
tour of the State Department.
Emily Thornberry, chair of the House of Commons Foreign Affairs Committee, told
POLITICO that U.S. officials should not be taken in by Robinson’s claim to be a
“free speech warrior,” while fellow MPs in the governing Labour Party branded
the move by a supposed ally “incredibly alarming.”
Joe Rittenhouse, a senior adviser at the State Department’s Consular Affairs
bureau, posted photos of himself on X alongside Robinson Wednesday. He said he
was “honored to have [the] free speech warrior,” who has a history of criminal
convictions in the U.K., “at Department of State today.”
It’s the latest apparent outreach by the Trump administration to far-right
figures in Europe, and comes despite enhanced scrutiny of tourists traveling to
the United States.
“The World and the West is a better place when we fight for freedom of speech
and no one has been on the front lines more than Tommy,” Rittenhouse posted.
“Good to see you my friend!”
A U.S. Department of State spokesperson told Reuters that Robinson attended “in
an unofficial capacity on a tour” Wednesday.
As part of the same U.S. trip, Robinson — whose real name is Stephen
Yaxley-Lennon — also shared a video of himself meeting Florida Republican
Congressman Randy Fine, and talked up a meeting with far-right U.S.
activist Jack Posobiec.
Robinson was previously associated with the anti-Muslim English Defence League,
a street protest movement, in the U.K. He has been convicted in the U.K. of a
range of offenses including assault, mortgage fraud and contempt of court.
Robinson held a “Unite the Kingdom” march in London last September which
attracted more than 100,000 supporters and was endorsed by tech billionaire Elon
Musk, who has openly expressed his backing for Robinson.
But his trip to the United States triggered a swift backlash back in the U.K.
Thornberry, the British Foreign Affairs Committee chair, warned: “Yaxley- Lennon
is being touted around Washington as a ‘free speech warrior.’ We need to engage
this administration on the difference between that and incitement to violence
and racial hatred. There should be no place in any democracy for the latter.”
Emily Thornberry, chair of the House of Commons Foreign Affairs Committee, told
POLITICO that U.S. officials should not be taken in by Robinson’s claim to be a
“free speech warrior.” | Nicola Tree/Getty Images
However, Labour MP Alex Ballinger told POLITICO he was “disappointed” that the
State Department had chosen to host a “convicted criminal” and “far-right
agitator.”
“Having worked alongside U.S. diplomats for many years, I suspect many of them
will be embarrassed about it too,” he added.
Fellow Labour MP Phil Brickell called the meeting a “complete outrage” given
Robinson has “peddled racist tropes in the past.”
“The guy holds no elected role,” he added. “On what basis do they [the American
government] recognize him?”
Catherine West, a former Foreign Office minister, said any country hosting
Robinson would be “incredibly alarming. For the U.K.’s key ally to do so is
frankly disgraceful.”
She added: “The government needs to send a clear signal to the U.S. president
that this is unacceptable.”
Calum Miller, foreign affairs spokesperson for the opposition Liberal Democrats,
said the invite “must be a wake-up call.”
Fellow Labour MP Phil Brickell called the meeting a “complete outrage” given
Robinson has “peddled racist tropes in the past.” | Lucy North/PA Images via
Getty Images
“The government needs to include the US in their inquiry into foreign
interference in UK politics,” he argued on X. “We cannot stand by while the
likes of Trump and Musk meddle in our democracy.”
Keir Starmer’s spokesperson stressed Thursday that Robinson is “not a
representative of the U.K.” but said meetings are “a matter for the U.S.
administration” and “not for me to speak to.”
PARIS — Emmanuel Macron has picked 33-year-old David Amiel to become France’s
new budget minister, the French presidency announced on Sunday — a crucial role
as the French government attempts to get its deficit under control amid a deep
political crisis.
Amiel replaces Amélie de Montchalin, a close ally of Macron who was appointed as
head of France’s top court of auditors earlier this month. The controversial
move led to accusations that the French president was politicizing a key French
institution.
Navigating budgetary debates has proven tricky since the 2024 general election
in France, which led to a hung parliament. The French parliament ousted the two
prime ministers who preceded current leader Sébastien Lecornu over their
budgetary plans.
In his first statement in his new role, Amiel said he would seek to ensure that
the hard-fought budget for 2026, which was officially passed only last month, is
properly rolled out. He also listed a series of aims including getting a better
grip on tax evasion and welfare fraud.
The current budget is expected to leave France with a deficit of 5 percent of
its gross domestic product for 2026, per the government’s most recent estimate.
Amiel has spent the last three months as minister for France’s public sector,
his first government role.
PARIS — Jack Lang, a former French culture and education minister, tendered his
resignation from his position as the president of the Paris-based Arab World
Institute after the latest revelations about his and his family’s financial ties
to disgraced financier Jeffrey Epstein.
France’s Foreign Minister Jean-Noël Barrot “took note of his resignation” and
launched the procedure to replace him, according to a statement dated Saturday.
Lang, who first acknowledged financial ties to Epstein in a 2020 interview with
POLITICO, was under mounting pressure after the prosecutor’s office for
financial crimes opened a preliminary investigation for suspected “laundering of
tax fraud proceeds” after French investigative outlet Mediapart reported the
existence of an offshore fund based in the Virgin Islands and jointly held by
Epstein and Lang’s daughter, Caroline Lang.
Caroline Lang was also to inherit $5 million in Epstein’s will, according to
Mediapart. Caroline Lang told the outlet that the fund was to support emerging
artists and that she knew nothing of the will.
“The accusations against me are inaccurate, and I will prove it, beyond the
noise and fury of the media and digital courts,” Lang said in his resignation
letter sent to Barrot. Contacted by POLITICO, Lang shared the resignation
letter.
In the latest wave of Epstein correspondence released by the U.S. Justice
Department, Lang appeared in a picture with Epstein outside of the Louvre, and
shared by Epstein with Steve Bannon, former chief strategist for U.S. President
Donald Trump.
“Now at the pyramid,” Epstein wrote in March 2019. “With the entire govt.”
Epstein, a convicted sex offender, and the Lang family maintained a close
relationship over the years, Jack Lang and his daughter admitted last week. Jack
Lang told POLITICO last week that he “never knew of Epstein’s crimes.”
Jack Lang, 86, is a well known name in French politics and history after having
served as culture minister under former President François Mitterrand in the
1980s and early 1990s, during which he initiated the renovation of the Louvre
and the construction of the pyramid. He also launched the Fête de la musique, a
fixture of France’s festive calendar celebrated on June 21.
BRUSSELS — Disgraced British politician Peter Mandelson is facing demands to be
stripped of his pension as a former European commissioner if investigators found
he broke EU rules over his contact with convicted sex offender Jeffrey Epstein.
Mandelson served as a European commissioner between 2004 and 2008 and is now at
the center of a spiraling scandal in Britain. Newly released files showed how
Mandelson, who was a senior British minister at the time, helped provide
Epstein, then a financier, with information about a €500 billion bailout to save
the euro in 2010.
The European Commission is looking into whether Mandelson broke its rules, which
apply even after commissioners have left office, though ethics campaigners have
called for a full fraud inquiry by independent investigators. Mandelson should
lose the commissioner’s pension to which he is entitled if he’s found to have
breached the rules, the campaigners said.
“Given the severity of allegations concerning Peter Mandelson’s deplorable
relationship with Jeffrey Epstein, the European Commission and European
Anti-Fraud Office must pursue an immediate investigation to establish any
potential misconduct both during and beyond his tenure as European
Commissioner,” Nick Aiossa, director at Transparency International, a leading
anti-corruption campaign group, told POLITICO. “Should it do so, Mandelson must
be stripped of his Commissioner’s pension.”
Daniel Freund, a Green MEP from Germany, condemned the lack of action and
investigations against “the most powerful people on earth” over their links to
the disgraced financier. “That EU commissioners were somehow involved with this
universe is just outrageous,” he told POLITICO. “Taking away the pension would
be justified if he broke any EU rules.”
Mandelson, 72, was entitled to an inflation-linked pension reportedly worth
£31,000 a year when he turned 65 for his four years as a European commissioner.
This is on top of other any pensions from his time as an elected politician in
the U.K. and in other roles.
Mandelson did not immediately respond to a request for comment. He has
previously said he was wrong to have continued his association with Epstein and
apologized “unequivocally” to Epstein’s victims.
In a statement, the EU’s anti-fraud office, known as OLAF, said: “We cannot
provide details regarding cases which OLAF may or may not be treating. This is
to protect the confidentiality of any possible investigations and of possible
ensuing judicial proceedings, as well as to ensure respect for personal data and
procedural rights.”
In London, Britain’s Health Secretary Wes Streeting said Mandelson should lose
the severance payment he was entitled to when his career as U.K. ambassador to
the United States ended over the Epstein scandal. Speaking to Times Radio,
Streeting also suggested Mandelson could potentially be stripped of related
pension entitlements.
The opposition Reform UK party said Mandelson should lose the pension he’s
entitled to receive as a former government minister.
Noah Keate contributed to this report.
BRUSSELS — The European Commission on Friday announced an investigation into
Slovakia over the dismantling of its whistleblower protection office.
In its latest rule-of-law spat with Bratislava, the EU executive criticized
leftist-populist leader Robert Fico for trying to replace the office with a new
institution whose leadership would be politically appointed.
“The Commission considers that this law breaches EU rules,” it wrote in an
official note on Friday.
Brussels’ move comes amid strong pressure from lawmakers and NGOs to act against
Fico’s crackdown against independent institutions and suspected fraud involving
EU farm funds.
Zuzana Dlugošová, the head of the whistleblower protection office, said that she
had repeatedly warned Slovak officials that the plans were in contradiction with
EU law.
“If expert feedback had been taken into account, Slovakia could have avoided EU
infringement proceedings. Still, we believe that this process itself can help
foster a more professional and substantive debate on how whistleblower
protection should be properly set up in Slovakia,” Dlugošová said.
Slovakia’s permanent representation in Brussels and interior ministry did not
immediately respond to POLITICO’s requests for comment.
Brussels has given Bratislava one month to respond to its queries before taking
further action — which could potentially include cutting EU payouts to Slovakia
after a multi-layered process.
Since returning to power in 2023 for a fourth term, Fico’s Smer party has taken
steps to dismantle anti-corruption institutions, including abolishing
the Special Prosecutor’s Office, which handled high-profile corruption cases,
and disbanding NAKA, an elite police unit tasked with fighting organized crime.
“The European Commission’s decision … sends a clear message: protecting
whistleblowers is not optional — it is a core obligation of every EU Member
State,” Czech MEP Tomáš Zdechovský said in written remarks to POLITICO.
Before launching the probe, the EU executive had pressed Slovakia to roll back
on its anti-democratic crackdown.
EU Budget Commissioner Piotr Serafin encouraged Fico not to dismantle the
whistleblower protection office during a meeting in Bratislava in December,
according to two Commission officials with knowledge of proceedings who were not
authorized to go on the record.
Nevertheless, in December 2025, the Slovak parliament pushed through a bill that
cut short the current director’s tenure and weakened protections for
whistleblowers. It was set to enter into force in on Jan. 1 but Slovakia’s top
court paused the disputed decision to review whether it complies with the
constitution.
German Green MEP Daniel Freund welcomed the Commission’s move but urged it to go
even further.
“The Commission needs to do more. Fico’s government has dismantled the special
prosecutor for corruption, has dismantled the national crime agency and has
changed the penal code to have hundreds of convicted corruption offenders walk
free,” Freund told POLITICO.
Slovakia is already subject to another infringement procedure, launched by the
Commission in November, over a reform that enshrines only two genders in the
constitution.