Since January 1, 2022, the Europe Now program has been in place in Montenegro, setting strategic goals for the country’s economic policy. Ten months into its tenure BDK Advokati Partner Luka Popovic and Harrisons Head of Montenegro Milan Keker look at what has been accomplished so far.

Despite the constitutional crisis in Montenegro, there is still a steady inflow of diverse foreign direct investments, and the country's GDP is expected to increase, yet Harrisons Head of Montenegro Milan Keker remains cautious.

After the Parliament of Montenegro adopted Law on amendments to the Law of Foreigners and introduced legal framework for digital nomads earlier in August 2022, further activities were undertaken in order to establish the practical applicability of the adopted legal framework.

A governmental crisis with a country-wide impact is preventing Montenegro from moving forward at a pace, both in terms of legislation and investments, according to Prelevic Law Firm Senior Lawyer Marko Ivkovic.

CMS has advised UGT Renewables on the cooperation agreement with the Electric Power Utility of Montenegro for the joint development of a large-scale solar energy project in the country.

Komnenic & Associates has advised KrolBay DOO Podgorica in the development of Phase II of the five-star hotel located in Boka Bay to be operated by Hyatt. Schoenherr reportedly advised Hyatt on the deal.

Komnenic & Associates has advised BIG Shopping Centers special purpose vehicle City Mall DOO on its acquisition of the Podgorica City Mall shopping center.

Komnenic & Associates has advised Sunny Estates on the acquisition of the former Hotel Galeb location in Ulcinj from the Roksped Group. 

In Montenegro, the Law on protection of personal data is still in power, and was last amended on April 3, 2017 („LPPI“).

With the war in Ukraine raging for more than six months, law firms across the region have reported increased workloads in corporate and M&A, tax, employment, immigration law, and inquiries on the sanctions regimes in relevant jurisdictions, noting that companies from Ukraine, Russia, and Belarus are variously looking for a new home. Whether to avoid sanctions or escape the war, those companies consider a variety of factors in determining where to go.

The Ministry of Ecology, Spatial Planning, and Urbanism of Montenegro („Ministry“) enacted a Rulebook on closer criteria for the assessment of requests for the issuance of urbanistic-technical conditions for the construction of facilities for the production of electricity from renewable sources of the sun and other renewable sources (“Rulebook”). The Rulebook entered into force on the day of its publication in the Official Gazette of Montenegro, i.e., on 12 October 2022.

To comply with the highest European standards and safety conditions – Law on amendments to the Law on payment transactions (“Law”) has been adopted in the Parliament of Montenegro on 29 September 2022. Free movement of capital and full compliance with the Payment Service Directive 2 (“PSD2”) were main reasons for adopting the Law which shall ensure that the provisions of payment services in Montenegro are regulated in the same way as in the member states of the European Union.

Contributed by Jovovic, Mugosa & Vukovic.

PLK Advokati has advised Montenegrin media companies Daily Press and Televizija Vijesti on the sale of a 51% stake to United Media. Schoenherr reportedly advised United Media.

On August 9, 2022, CEE Legal Matters reported that Vukovic & Partners had advised ODM Collections on obtaining a purchase of receivables work license from the Central Bank of Montenegro. CEE In-House Matters spoke with Drazen Stevanovic, CEO at ODM Collections, to learn more about the matter.

According to windeurope.org data, Montenegro was at the top of the list of European countries in terms of the percentage of energy generated by wind farms on April 17, 2022. On that day, the two Montenegrin wind farms, Mozura and Krnovo, produced 45% of Montenegro’s total electricity needs.

Fraught with institutional uncertainty and political instability, times are difficult and uncertain in Montenegro, according to Jovovic Mugosa & Vukovic law office Managing Partner Vanja Mugosa.

Montenegro does not have a foreign investment screening regime comparable to those emerging now in European Union in light of the EU FDI Screening Regulation. It operates a sector-specific authorisation system covering the defence sector.