The Swiss company "8B Capital" has violated the Lease Agreement for the Niksic Steelworks by failing to pay the monthly rent of 31.000 euros for half a year. In addition, it did not take on 150 workers during the same period, which it was obligated to do.
The steel mill is a daughter of the state-owned Elektroprivreda, which in July 2024 signed a lease agreement with a Russian businessman with an Israeli passport, Igor Shamis, owner of "8B Capital".
The 50-year lease agreement relates to two Željezara plants for the production and processing of steel.
Shamis committed to launching production in the first year and investing around seven million euros, or 37 in the first five years.
Nothing has been done about it, says Ivan Vujović, president of the Steel Works Union, to Radio Free Europe (RFE).
"We no longer consider him a tenant, he hasn't paid rent since November," says Vujović.
Union on the situation at the Steelworks
He says that Shamis occasionally comes to the factory, but is not in contact with the workers.
"Although the lease agreement has not yet been terminated, Šamis has not shown with any of his gestures that he is capable of starting production," says Vujović.
He believes that the question for Elektroprivreda is why the contract with him was not terminated.
Whether they will initiate the termination of the contract due to non-payment of rent is a question to which RFE/RL has not received an answer from Elektroprivreda.
"If he is unable to pay the monthly rent of 31.000 euros for the huge property at the disposal of the Ironworks, then how is he able to realize the investments?"
Vujović says that the factory union is only interested in the status of the workers and adds that they are all employed through the Electric Power Company.
"If a tenant appears, the workers can stay with the parent company (Elektroprivreda) because their written consent is required to move to the tenant."
"We hope that the state, namely Elektroprivreda, will put an end to this tenant and start terminating the contract because the workers believe that he is not capable of starting production," says Vujović.
The government is concerned but not reacting?
Montenegrin Prime Minister Milojko Spajić confirmed that Šamis had not respected the contract from the start during a visit to the Nikšić factory on April 9th.
"That's worrying. But there is a contract that specifies exactly what can happen in such cases," Spajić said.
At the same time, he said that the state will use all legal means to ensure that obligations are fulfilled.
RFE/RL has not received a response from Spajić's office as to whether and what legal remedies they have used so far.
Shamis also did not respond to RFE/RL's inquiry as to why he was not honoring the lease agreement.
Shamis' affairs
Shamis first became one of the owners of the Steelworks 20 years ago, through the international "Midland Group." That company is associated with Russian President Vladimir Putin.
Namely, in 2004, the "Midland Group" purchased a majority stake in the Steelworks from the Government of Milo Đukanović for 1.000 euros, with mandatory investments of 30 million euros over five years.
After two years, in November 2006, they left the Ironworks, and the Government announced that they had left a tax debt of around 2,7 million euros and increased the factory's losses to over 12 million euros.
On the eve of signing the current Lease Agreement for the Steel Mill, in July last year, Shamis confirmed to RFE/RL that he had a 33 percent ownership stake in the Midland Group.
At the same time, he denied ties to Putin, but did not say whether he had left "Midland".
"My return to the factory in Nikšić is motivated by my knowledge of its investment potential," Šamis told RFE/RL.
Shamis did not answer RFE/RL's question at the time whether he had been detained in Croatia because of the way he operated at the Sibenik Light Metal Factory.
He also did not answer whether there were allegedly corrupt practices and money laundering during his business in the Czech city of Plzen.
Before signing the lease agreement, Elektroprivreda told RFE/RL that they had checked the tenant's credibility.
"Shamis provided evidence that he has never been convicted in Croatia or France, which is confirmed by extracts from the criminal records of these countries. He also provided documentation that he has no tax debts in Russia," Elektroprivreda stated at the time.
Prime Minister Spajić's office did not respond to RFE/RL's inquiry as to whether they would hold the management of Elektroprivreda accountable, since Shamis's operations in Croatia and the Czech Republic indicated that he would not honor the contract on the Steel Plant.
The Board of Directors of Elektroprivreda is headed by Milutin Đukanović from the pro-Russian New Serbian Democracy, a member of the former Democratic Front.
RFE/RL sent inquiries to the government, Šamis, and Elektroprivreda ten days ago, on April 25th.
The State Electric Power Company has been the owner of the Nikšić Steel Plant since the end of 2022, when it purchased it from the Turkish Tosjali Group for 20 million.
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