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Montenegro aligned with EU sanctions against Russia in 2014 and expanded them significantly after Russia’s 2022 invasion of Ukraine. While politically consistent, these sanctions have caused severe economic damage to Montenegro, with estimated losses exceeding €250 million.
Key impacts include:
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- Loss of Russian wine market: Before sanctions, Montenegro’s Plantaže winery exported €3–4 million worth of wine annually to Russia. Post-sanctions, exports virtually stopped, causing direct losses of at least €10–12 million in three years, and an estimated €27 million over nine years including indirect costs.
- Disrupted air links: Prior to 2022, Montenegro had over ten direct flights to Russia, bringing over 110,000 tourists in 2021 alone. The cancellation of flights resulted in an estimated €10 million annual loss to airports, hospitality, transport, and local communities, totaling over €30 million in three years.
- Tourism sector losses: Russian tourists accounted for around 20% of high-season foreign revenue, spending approximately €1,200 per visit. A drop of 80–90% in arrivals caused an annual loss of at least €35 million, or around €100–110 million in three years.
- Frozen assets and investment decline: Russian investments in real estate, luxury hotels, and marinas worth about €44 million were frozen. Additionally, canceled projects led to losses estimated at €25–30 million, with investors withdrawing from key coastal developments, causing empty properties, legal disputes, and lost tax revenue.
Montenegro’s total economic damage from sanctions is over €250 million.
The article calls for greater European Union financial solidarity, urging the EU to establish compensation mechanisms for candidate countries like Montenegro that suffer economically from sanction policies while fulfilling political commitments to EU values.
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