Swiss company 8B Capital has breached its lease agreement for the Nikšić Steel Plant by failing to pay the monthly rent of €31,000 for the past six months. Additionally, the company has not hired the 150 workers it was obligated to, Radio Free Europe (RFE) reports.
The steel plant is a subsidiary of the state-owned Elektroprivreda, which signed the lease agreement in July last year with Russian businessman Igor Šamis, who holds an Israeli passport and is the owner of 8B Capital.
The 50-year lease agreement covers two of the plant’s facilities for steel production and processing. Šamis committed to starting production in the first year and investing approximately €7 million in the first year and €37 million over the first five years.
Ivan Vuović, president of the Steel Plant’s Union, told RFE that none of these commitments have been met.
“We no longer consider him the lessee; he hasn’t paid rent since November,” Vuović stated.
He added that Šamis occasionally visits the factory but is not in contact with the workers.
“Although the lease agreement hasn’t been terminated yet, Šamis has not shown any willingness to initiate production,” Vuović said.
He questioned why Elektroprivreda hasn’t terminated the contract with Šamis.
RFE did not receive an answer from Elektroprivreda regarding whether the contract will be terminated due to the non-payment of rent.
“If he is unable to pay the monthly rent of €31,000 for such a large asset like the Steel Plant, how is he supposed to implement his investments?” Vuović asked.
Vuović emphasized that the factory union is mainly concerned with the workers’ status, noting that all employees are technically still employed by Elektroprivreda.
“If the lessee shows up, workers can stay with the parent company (Elektroprivreda) because they need written consent to move to the lessee’s company,” Vuović explained.
He expressed hope that the state, specifically Elektroprivreda, would take action to terminate the contract, as the workers believe that Šamis is not capable of restarting production.
Montenegrin Prime Minister Milojko Spajić confirmed during his visit to the Nikšić plant on April 9 that Šamis had failed to honor the terms of the lease from the start.
“This is concerning. But there is a contract that clearly outlines what can happen in such cases,” Spajić said.
He also stated that the state would use all legal means to ensure that obligations are fulfilled.
RFE did not receive a response from Spajić’s office regarding what legal actions, if any, have been taken so far.
