Montenegro is preparing legislation that would establish a unified framework for screening foreign investment in strategically sensitive areas, expanding the scope of investment reviews beyond the country’s existing rules for the defence industry. The proposed system would apply to investors from outside the European Union, as well as companies registered in Montenegro or the EU that are controlled by investors from third countries.
Transactions could be subject to screening when an investor obtains direct or indirect control, significant influence, or at least 10% of ownership or voting rights in a company.
Strategic Sectors Covered by Screening
The proposed framework would cover investments involving energy, transport and logistics infrastructure, ports, airports, railways, telecommunications, cybersecurity, water supply, healthcare, biotechnology, financial systems and media.
The protected areas would also include election infrastructure, defence, artificial intelligence, critical technologies, agricultural land, food production, sensitive data and strategic raw materials. The range of sectors reflects the proposed focus on investments that could have implications for security and public order.
Economic Development Ministry to Manage Reviews
The Ministry of Economic Development would be responsible for drafting the legislation, conducting investment reviews and acting as Montenegro’s contact point for cooperation with the European Commission and EU member states. A specialised unit within the ministry would receive applications, assess transactions and coordinate the screening process with other government institutions.
Montenegro currently has investment-screening rules only for the production and sale of weapons and military equipment. The government has said that the proposed broader mechanism is intended to identify potential risks to security and public order rather than restrict legitimate foreign investment. The legislation is being prepared as part of Montenegro’s alignment with European Union rules during its EU accession process.
