Swiss company 8B Capital, which signed a lease agreement last year with Montenegrin power utility EPCG for two facilities—Željezara steel plant and the forging shop—has not made any payments to EPCG as of yesterday, according to unofficial sources.
8B Capital’s owner, Igor Šamiz, was supposed to pay EPCG €250,000 by yesterday and settle the remaining debt in installments, or risk contract termination, as reported by local media. The payment was a condition for potentially signing a contract annex and giving Šamiz a second chance to operate.
This agreement was made during a meeting between Šamiz, EPCG director Ivan Bulatović, and Mining and Energy Minister Admir Šahmanović. It included transferring valuable equipment ordered from Ukraine to EPCG as collateral, with the obligation to start production by January 1 next year.
EPCG had notified Šamiz in early May that the lease contract could be terminated due to unpaid rent. Šamiz then contacted Minister Šahmanović, who emphasized that settling the debt and providing credible financial guarantees were prerequisites for any further negotiations.
The 50-year lease contract was signed last summer and became effective in October. Since then, Šamiz has paid only two rent installments of €31,000 each and failed to hire the required number of 150 Željezara workers over six months. The contract stipulates a €7.75 million investment and production startup within a year, plus an additional €36.85 million investment over the next five years.
Following the initial termination notice, Šamiz made a partial payment of €40,000.
Workers were reportedly not surprised by the potential contract termination or the unreliability of another investor, as their employment is still secured by EPCG, the parent company.
EPCG Željezara was established in early 2023 after the Montenegrin government approved EPCG’s purchase of Željezara’s assets from the previous Turkish owner Tošcelik for €20 million. The Competition Protection Agency ruled this purchase as illegal state aid, and EPCG is appealing the decision at the Administrative Court, claiming the acquisition was a good deal based on market principles and that the assets are worth much more. The deal followed months of strikes by Željezara workers who had blocked the factory.
