The "sale" of Montenegrin passports is a risk for the EU

The European Commission closely monitors the situation in the Western Balkans, including situations that can be understood as a circumvention of measures within the framework of the European Union's foreign and security policy.

This is what the EC spokeswoman told "Vijesti". Ana Pisonero Hernandez commenting that the Government of Montenegro, despite recommendations from the EU, continues to implement the economic citizenship program.

"The EC has consistently advised Montenegro to abolish the investor citizenship scheme due to the risks it poses (such as money laundering, tax evasion, terrorist financing, corruption and organized crime infiltration). In the 4th report of the Visa Suspension Mechanism, the Commission recommended that Montenegro abolish the investor citizenship scheme as soon as possible", said Pisonero Hernandez.

She added that, as a candidate country for EU membership, Montenegro should refrain from any measures that could jeopardize the achievement of EU goals, including privileges for granting citizenship.

"We welcome the continuous and full alignment of Montenegro with the EU's foreign and security policy and commitment to the full application of EU restrictive measures," said Pisonero Hernandez.

The program, with a plan to last three years, was designed and implemented in 2019 by the previous Government of the Democratic Party of Socialists (DPS), which was replaced in the elections in August 2020. The first golden passport was issued in February 2020.

According to the program, investors, in exchange for a Montenegrin passport, invest in development projects in tourism, agriculture and processing industry. There is little interest in agricultural projects (one project), and no public invitation has been issued for the processing industry. On the list of development projects in the field of tourism, within the program, there are currently 12 projects related to the construction of hotels according to the condo or mixed model, which means that they contain apartments for sale.

The conditions for obtaining a Montenegrin passport were originally an investment of at least 450.000 euros in one of the development projects in Podgorica and the coast, or 250.000 euros in the northern or central region, as well as donations to less developed municipalities, but this year the Government will tighten them. Now all investors must submit to the Government a bank guarantee in the value of 50 percent of the investment within a month. In addition, applicants for citizenship, in addition to 100.000 euros for the Fund for the Development of Underdeveloped Municipalities, will have to allocate another 100.000 euros to the Innovation Fund.

According to the program, which was launched in 2019, a total of 409 foreigners received Montenegrin citizenship, of which the most were Russians, 241 or almost two thirds, according to data recently published by the Center for Investigative Journalism of Montenegro (CIN-CG).

The program was supposed to "sell" two thousand passports in three years (from January 2019 to the end of 2021), so due to weak interest, the Government Zdravka Krivokapića planned to abolish it at the end of 2021. However, on December 30, 2021, it made a decision to extend the program until the end of 2022 with the explanation that the investors did not have time to complete the projects due to the covid crisis.

However, three new projects were included in the list of development projects - the construction of the Liko Soho Bar Hotel, Magnum Kolašin and Hotel "B" in Kolašin, based on the condo business model.

The government of Zdravko Krivokapić approved 301 decisions on admission to Montenegrin citizenship, based on a special investment program, while the previous government Duško Marković gave 108 "golden passports".

According to the data of the Investment Agency (MIA), since the beginning of the implementation of the special investment program of special importance for the economic interest of Montenegro, 28.250.000 euros have been paid for the purpose of the procedure costs.