Minister of Economic Development Nik Đeljošaj said today in the Parliament of Montenegro that the Law on Free Zones, which prohibits the storage and processing of tobacco products in the Free Zone of the Port of Bar, is a temporary and not a long-term solution for combating cigarette smuggling and that they will have to review this solution in the coming period.
European Union Representative Branislav Nenezić He asked Đeljošaj whether, as the relevant minister, he would propose to the Government of Montenegro amendments to the Law on Free Zones due to the obvious negative economic effects on companies operating in it.
He said that they did not have the opportunity to discuss this law because it was adopted with 22 other laws through a fast-track procedure, without discussion and the possibility of submitting amendments.
Nenezić noted that the Government adopted this legal solution on December 25, 2025, and the Parliament adopted it on February 2 of this year, and that it contradicts everything that a free zone should represent.
"Five months after the adoption of the law itself, we have a situation where the law is not being implemented. That is precisely why I wanted to hear from the relevant minister whether such a legal solution should undergo certain changes, what the effects of this law have been to date and what it should bring to economic entities in the long term, and I am specifically referring to AD Luka Bar, Port of Adria," said Nenezić.
Đljošaj responded that he agreed that there was no discussion when the law was adopted, but that there was at the Committee on Economy, where the topic was raised. He said that this law had gone through all the necessary procedures – public debate, formation of a working group…
This law regulates something in the country that is not well regulated, he said, and left room for major abuses, so they defined something with it that they do not think will be a long-term solution, but rather a temporary one, which is to completely ban all work with cigarettes.
"I don't think we need to explain why it was done. We all know what happened in the past 30 years, what happened and that they linked our country to this cigarette smuggling, and we in the government were of the opinion that we need to cut it off and that in the future we should see opportunities so that those who are legally engaged in this business don't have big problems and that after a while we can see how we can establish a system that will somehow cleanse us of what has happened in the past 30 years," he said.
This law, as he said, is the only change, the one that may be questionable for some of the companies that worked and used the ports. The rest, he added, offers all the possibilities that existed in the coming period.
He believes that the solutions have been improved, and that there is a "slightly greater rebellion" because there were operators who were not registered in Montenegro and could not monitor the flow of money, and now they have established a system that requires them to register in Montenegro.
"The decision was made by the Government to regulate this part now, to completely prohibit the use of free zones for cigarettes until some future period, to see if we can organize ourselves a little better as a state, as institutions, to stop what were major abuses and cigarette smuggling. In that process, a small chain of companies from our partner countries will have some problems, and we hope that in some future period we will be able to review it," said Đeljošaj, adding that in the future period they must see how to review it.
Regulation through by-laws
The Law on Free Zones is the result, according to Đeljošaj's written response, of an inclusive and transparent drafting process, in which representatives of the competent state administration bodies, the economy, the non-governmental sector, the operator of the Port of Bar Free Zone and other interested parties participated.
During the public debate and interdepartmental consultations, a significant number of proposals and suggestions were considered, he added, with some of them being accepted and incorporated into the final legal solution.
He emphasized that the adoption of this Law represented a response to the challenges identified in the previous practice of the functioning of free zones, including the need for more precise normative regulation of this area, improving supervision mechanisms and strengthening the transparency of goods flows.
"To this end, a modern and internationally harmonized legal framework has been established that improves legal certainty, risk management efficiency and predictability of the business environment. The special importance of the Law is reflected in the strengthening of the system of control and supervision over the movement of goods within free zones, which creates the prerequisites for more efficient prevention and suppression of illegal activities in international trade flows, including illegal trade in excise products, which for years has represented one of the recognized challenges that international partners and relevant international institutions have pointed out in the context of monitoring Montenegro's progress," said Đelošaj.
He pointed out that the legally prescribed conditions for founders, operators and users of free zones, including financial, organizational, technical and security requirements, are aimed at legal and transparent business operations, efficient customs supervision and full control of goods flows,
which strengthens legal certainty, ensures equal business conditions and creates the conditions for a stable and predictable business environment.
After the Law came into force, the Ministry of Economic Development was contacted, as the Minister stated, by free zone users, as well as other entities involved in business and trade of goods within the free zone, with questions related to the application of certain legal provisions.
"Taking into account the expressed doubts, the Ministry emphasized that the solutions in question cannot be viewed in isolation, but exclusively in the context of the entire system established by the Law, the purpose of which is to more clearly define the rights, obligations and responsibilities of all participants in the free zone system, improve business transparency, strengthen the efficiency of supervision, ensure efficient control of goods flows, as well as establish equal business conditions for all entities operating within this regime," said Đeljošaj.
The Ministry of Economic Development is carrying out activities to adopt by-laws stipulated in the Law on Free Zones, he said, adding that some of the by-laws have already been adopted, while the remaining part is in the final stage of drafting, after which the necessary procedures for their adoption will be carried out, which will complete the normative framework established by the Law and create the prerequisites for its efficient and consistent application in practice.
"At the same time, it is important to keep in mind that in order to objectively assess the real effects of each new regulation, a certain period of its full implementation is necessary, in order to assess the achieved results, identify possible challenges and consider the needs for its further improvement. In this regard, the Ministry of Economic Development will continue to monitor the implementation of the Law and its effects in practice, and undertake activities aimed at further improving the normative framework, taking into account the interests of the economy, the protection of public interest and Montenegro's international obligations," concluded the Deputy Prime Minister.
Nenezić: The law is not in accordance with the Constitution of Montenegro
In his comment on Đeljošaj's response, Nenezić said that Đeljošaj did not write the response that was submitted in writing and that he expected the minister to say what the positive effects of this law were, and that this was not included in that response.
"I have to tell you that the legal solution that was discussed in March last year is not the same as the one that was adopted in December. As for the objections from the public hearing, none were adopted," he pointed out, adding that the Chamber of Commerce's recommendation states that doing business in a free zone is conditional on registration in Montenegro.
Gheorghe said that no country has such regulations and that there is no prohibition there for a business entity to carry out business in a free zone through its freight forwarder in that country. When the minister stated that they did this to monitor the flow of money, he asked on what basis they have the right to monitor goods in transit.
"The goods leave Brazil owned by Boris Mugoša. While traveling across the ocean, Ivan Vuković buys them. When they enter the Mediterranean, they are bought by my colleague Nikola Rakočević. They arrive at the Port of Bar as the property of Boris Pejović. We neither have the right, nor is it a normal procedure in any country that the state can and should control these money flows, because these are not goods that are not held back and do not go to the market of the country in which they are transshipped," he said.
He said that Montenegro was the first in the world to prevent the transit of legal goods and did so outside the Constitution, because Article 8 prescribes the prohibition of discrimination and Article 9 the legal order, Article 17 the basis of equality, Article 58 property, 59 - entrepreneurship, 159 - an economic system that depends on the free market...
He said that everything that Đeljošaj referred to in his response as a negative effect is not regulated by the Law on Free Zones, but by the Customs Law, and that "due to the inability to control the circulation of legal goods arriving in closed, sealed containers, they have banned the entire activity."
He emphasized that users and foreign operators will leave the free zone, that the work that was done there will move to neighboring ports in the region, and that cigarettes will definitely travel through Montenegro and go by truck to the land border crossing.
In response to Nenezić's presentation, Đeljošaj reiterated that the Free Zone cannot be used for cigarette businesses and that everything else that this law stipulates can only protect everything that AD "Luka Bar", "Port of Adria" does.
He concluded that the concession agreement with "Port of Adria" cannot in any way be linked to this law or bankruptcy laws because they have the right to regulate cigarette smuggling.
He understands, as he stated, that cigarette factories in neighboring countries do not participate in smuggling and that they will have to "suffer in the future" because of this law, but that they could not allow those companies to operate and prohibit others.
"The Port of Bar will not be used for cigarette smuggling. That was the basic message and what was important for us to convey to our European partners, and that's it," he concluded.
Đeljošaj: There were no major investments due to political turbulence; Rakočević: There have been no projects for six years
Đeljošaj said that there had been no development projects in Montenegro in the last six years because no one serious wanted to cooperate with a country that was going through political turbulence, but that the current executive government had changed that climate.
He said this in response to a question from Democratic Party of Socialists (DPS) MP Nikola Rakočević - how he explains why Montenegro has gone from a country of investment optimism and dynamic economic development to a country celebrating the return of investors it had previously driven away.
Rakočević said that their political entities worked to attract investors and implement infrastructure projects, and that the result was over ten billion euros in investments in Montenegro after the restoration of independence, hundreds of kilometers of roads...
He assessed that the DPS and the Albanian Alternative have "temporarily parted ways" since 2023 and that he believes that at some point they will "continue where they left off."
He emphasized that in the last five years, no foreign investment or major project has been implemented, which aims to economically strengthen the country, create jobs in the real sector, collect VAT, acquire superior knowledge, promote Montenegrin businesses and destinations...
"All of that was missing because there were no relevant investments," he concluded. He added that for the Tivat Summit, the government, in order to present an image of an economic state that is ready for the European Union, took guests to "Porto Montenegro" - a project that was being talked about while it was being implemented.
The Minister and Deputy Prime Minister for Economy said that when it comes to the event in Tivat, they should not look at what happened but rather look to the future, and he believes that everyone was proud of who was a guest of our country and because it was confirmed that Montenegro is the next member of the European Union.
Referring to Rakočević's allegations about some future collaboration between Đeljošaj's party and DPS, he said that he is "currently in the process of some other unification" but that he is still the president of the Albanian Alternative, which was in a coalition arrangement with DPS for only one term.
Speaking about investments, he said that they could not expect any large ones during this period because after August 2020 they had a Government that lasted a year, then another for three months, after which a Government in a technical mandate for more than a year.
"No one serious after such political turbulence and instability will come to invest in such a country. This government is stable, to a large extent everything that could have been a problem in the previous period has flowed into results, especially in the area of European integration," Đeljošaj said.
He assessed that the increasingly secure accession to the European Union would make Montenegro a safer investment destination. He added that this Government had contributed to stability and seriousness and that he believed it was time to embark on such (large) investments, and he expected them in the coming period, but that "the prerequisites must exist for that."
When this government started working, according to him, there was not a single conceptual solution for infrastructure, and now they have dozens of them.
He said that he would sign more agreements with international partners in the field of economics, that he expects investments from the United States, that the "climate is changing" and that those who want to invest in Montenegro "believe in this Government."
They are not celebrating the return of investors, but the resolution of problems.
In a written response to Rakočević, the Minister of Economy stated that he did not share his assessment that Montenegro had become a country that "celebrates the return of investors it had previously driven away."
"On the contrary, I believe that it is the responsibility of every serious government to solve the problems it encounters, remove obstacles to investment, and restore the functions of resources that have not contributed fully to the economic development of the country for years," he wrote.
When it comes to the Sveti Stefan and Villa Miločer complex, he stated, the fact is that it is one of the most recognizable tourist symbols of Montenegro, which has been the subject of a closed dispute between the contracting parties and parallel proceedings before international arbitration and domestic institutions since 2021. During that time, as he said, Montenegro was left without significant rental income, fiscal revenues related to the operation of the complex, as well as hundreds of direct and indirect jobs that were related to its operations.
The lease agreement was never terminated, Đeljošaj added, but the focus of all activities was on finding a sustainable solution that would be in the interest of the state and citizens.
"Our goal was not to make concessions to anyone to the detriment of the state, but to protect the public interest."
That is precisely why intensive negotiations were conducted with the aim of ending the long-standing dispute, removing
"legal and operational obstacles and creating conditions for the reopening of the complex. Sveti Stefan is not just a hotel complex. It is one of the most important symbols of Montenegrin tourism and a destination that has represented Montenegro on the international market for decades," he said.
Đeljošaj adds that its reactivation means the renewal of economic activities, new jobs, greater income for the local community and the state, as well as further strengthening of Montenegro's international reputation as an investment and tourist destination.
"I do not consider the fact that one of the most valuable tourist resources was closed for four years a success. I consider every step that leads to its reopening, preserving the reputation of the state, protecting the public interest and creating new development opportunities for the citizens of Montenegro a success. That is why we are not talking about celebrating the return of investors, but about responsibly solving the long-standing problem of restoring the function of a resource that is among the most valuable tourist potentials of our country," he concluded.
Rakočević: There is no investment in the announcement
In response, Rakočević said that Đeljošaj did not deny what he said, that there have been no projects for six years, and that he knows that the minister is a "serious man" who will not "invent projects."
"The point is that for six years there has been no single project, no direct foreign investment in Montenegro. That is what is causing criticism and concern, because we do not even have it in the announcement," said the DPS MP.
In response to Đeljošaj's statement that the climate is changing, he said that this confirms that "the climate is bad" and that the second section of the highway is being planned for six years, and that they (DPS) completed the first section in six years, "much longer and more complicated, which started from scratch."
He said that this government has been governing the country for six years, which is a third of the time that DPS and its partners have spent in power, and that they are asking them to show that they are "like them" and to compare what DPS has done in a third of its rule with the zero that the current majority has.
"Your balance is zero and that is the difference in competence and ability to run the economy, to develop the country as an investment destination. I am not talking about the country borrowing and investing, but about foreign and domestic investments," Rakočević said, adding that he has nothing against state investments, but that they are not investments.
He said that Đeljošaj's coalition partners, while sitting in the opposition benches, called for no investment in Montenegro, and that DPS should encourage investment and development from that position and send the message that Montenegro is a "strong country" so that investments can be made in its economy.
Vuković: Citizens are making ends meet; Đeljošaj: We cannot permanently restrict the economy
DPS MP Ivan Vuković asked Đeljošaj whether he was satisfied with the effects of the decision not to continue the "Limited Prices" campaign, and that, according to the minister, "the market should be allowed to breathe a little."
Vuković said that in response to that parliamentary question, Đeljošaj stated that the results confirm that the decision was justified, responsible and in the interest of citizens and the economy, and assessed that the minister was satisfied that the action was not continued.
He pointed out that all research shows that prices, living standards and similar topics are what predominantly interest all citizens.
Vuković, citing MONSTAT data, said that in 2019, a loaf of bread cost 215 euros per year, and in 2025, 328 euros – 113 euros more. Seven years ago, a liter of milk per day cost 237 euros per year, and now 420 euros – 183 euros more annually.
For the usual consumption of chicken meat by a household, as he said, in 2019, 271 euros were needed per year, and now 388 euros. For beef, 142 euros were needed, and today 202 euros, for local cheese 90 euros then, and now 158 euros.
"Citizens spend 571 euros more per year on these five foods alone than in 2019. An amount that is higher than the average pension on these five foods alone. There is no oil, vegetables, fruit..."
He asked Đeljošaj if he was aware that in 2019, electricity, water, and heating cost an average of 808 euros annually, and today it costs 1227 euros, which is more than an average salary - without clothes, shoes, vacations, internet...
"Citizens are not in the Government's plans. Instead of members of the Government asking how a pensioner in Montenegro today who receives 450 euros, which is presented as an extraordinary economic achievement of the parliamentary majority, can buy himself food, how he can pay his bills and buy himself medicine when he goes to the hospital," Vuković asked, adding how a young married couple can buy a 50 square meter apartment in Podgorica.
He pointed out that in 2019, this investment required, on average, 45 thousand euros, and today 122 thousand euros are needed - 77 thousand euros more. He also asked if there was anyone in the government who was interested in the fact that over 25 percent of children in the country were at risk of poverty.
He asked what the Government's further plans were in combating inflation.
Đeljošaj said that he did not even remember where he said that "the market should be allowed to breathe a little" and that it was probably taken out of context, but "that it is true."
The economy cannot be limited in the long term, especially when it is affected by events beyond their control, such as the war in Ukraine and the crisis in Iran.
Commenting on the data presented by Vuković, he said that mathematics cannot be used as the only benchmark for comparison, because one euro is not worth the same as it was in 2019.
"At the same time, we had a large increase in salaries, you did not mention that. We had a growth in the country's GDP, which has now doubled compared to that year. From experience in the real sector, we cannot just mathematically save years when it comes to the economy. I think the environment is getting better day by day in Montenegro," he said, adding that he was satisfied that the government had managed to suppress inflation and that the standard of living would be even better, especially after accession to the EU.
In a written response to Vuković, Đeljošaj wrote that the "Limited Prices" campaign was introduced as a temporary measure during a period of pronounced global inflationary pressures, with the aim of protecting citizens' living standards and mitigating the rise in prices of basic foodstuffs and consumer goods.
During its duration, the effects for which the measure was introduced were achieved - citizens were enabled to purchase a large number of products at more favorable prices, while at the same time maintaining an orderly supply of the market.
"When making the decision to end the action, indicators of price movements, inflation and the market situation were analyzed. These data did not indicate the need for further administrative measures."
"not by limiting margins and prices, but rather by the possibility of a gradual return to regular market mechanisms," said the Minister of Economy.
The correctness of such a decision, he added, is confirmed by indicators after the end of the campaign: There was no disruption in supply or a sudden increase in product prices that would threaten market stability.
At the same time, as he stated, Montenegro has maintained a moderate level of inflation, which is around 3,8 percent, despite the still present external pressures caused by rising energy and food prices and other international factors.
The "Limited Prices" measure was never intended as a permanent solution, he stated, but rather as a temporary instrument to protect citizens in extraordinary market circumstances.
"In the long term, a stable and competitive market represents the best mechanism for price formation, while the role of the state is to intervene when there is a clear need for it."
"The Ministry of Economic Development will continue to monitor price and inflation trends, and if necessary, will propose new measures to protect citizens' standards. However, based on the available indicators and the effects achieved after the end of the action, I believe that the decision not to extend the measure was justified, responsible and in the interest of the citizens and economy of Montenegro," concluded Đeljošaj.
Vuković responded that inflation has led to citizens "making ends meet" and that the problem is not "that the market is breathing, but that citizens are suffocating under the burden of inflation that you are no longer trying to curb."
He pointed out that statistics refute his claim that the situation in Montenegro is better, that the liquidity of the economy is an increasing problem, that more and more companies are in lockdown... He concluded that the data he presented is "a harsh reality in Montenegro that I cannot escape" and that the country is "slowly but surely turning into a country for rich people" and that in that equation there are surplus pensioners and those who cannot provide themselves with money for private treatment, young people and all those who cannot fit into the vision of the privileged individuals who lead Montenegro.
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