Darker side to Montenegro boom

NICHOLAS WOOD IN BECICI 

MONTENEGRO has never seen anything quite like the Hotel Splendid. Stretching
for almost half a mile along the Adriatic shoreline, it provides
unparalleled luxury for those who can afford it. 

But like many of the projects backed by Russian investment funds that have
recently poured into this small country, the hotel has earned a less than
glamorous reputation. Three bombs exploded at the site during construction.
The police officer investigating the blasts was killed. 

In the past two to three years, hundreds of Russians have flocked to
Montenegro to buy large stretches of land along the Adriatic coast and to
build resorts like the Hotel Splendid. Farther inland they have bought the
majority of shares in the country's industrial sector, providing much-needed
cash to ailing factories. 

The influx of Russian capital is prompting many here to question its impact
on this nation of only 650,000 people, which already has a reputation as one
of the most corrupt and crime-ridden states in the Balkans. The concerns
spring from the secretive nature of many deals, questions about the origins
of their financing and the large sums of money involved. 

In its official policy, Montenegro is avowedly pro-Western. In May, the
republic voted in a referendum to end its union with neighbouring Serbia,
breaking up all that remained of the former Yugoslavia. The newly
independent state has made membership of Nato and the EU immediate
priorities. The country's new prime minister, Zeljko Sturanovic, says he
wants to rid the country of organised crime groups that dominated it during
the break-up of Yugoslavia. 

>From Bar to Tivat, Montenegro's most prized stretch of coast, Russian voices
can now be heard around the ports, on the beaches and in the cafes. Property
signs are written in Russian and English. 

"It is interesting that they are able to come here carrying four million,
five million or six million euros in cash apparently without any form or
official control," said Marija Vukovic, who was until a year ago a local
council lawyer for Budva, a coastal town where Russians have made
substantial investments. 

Vukovic now owns her business, dealing with real estate transactions. "Every
day we hear that Montenegro wants to be part of the EU, but this kind of
business is not proof that we are heading the right way," she said.

This article: http://news.scotsman.com/international.cfm?id=1932062006

Last updated: 31-Dec-06 12:20 GMT


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1. <http://news.scotsman.com/international.cfm?id=1932062006#comment255422>
Neil, 9% Growth party / 1:21pm 31 Dec 2006

"one of the most corrupt and crime-ridden states in the Balkans"

Since Kosovo isn't a state this seems to be an understatement. For 16 years
NATO funded a kleptocracy in Montenegro with no respect for human rights.
One of the arguments in favour of "independence" is that, as a sovereign
state, their president could not be extradited to Italy to be a defendent in
a Mafia trial. If what now exists is a kleptocracy with no respect for human
rights we can hardly act surprised.

 

2. <http://news.scotsman.com/international.cfm?id=1932062006#comment255940>
Paul Camaj, New York / 11:05pm 31 Dec 2006

Montenegro has a chance to become an example of democracy in the Balkans.
After achieving independence, Montenegro needs to establish a new democratic
leadership replacing the current leaders who are old communist leaders that
took part in the atrocities in the former Yugoslavia. The democracy in
Montenegro must be developed on the principles of equality and not hate as
it was the case with the recent activities toward ethnic Albanians which
included political imprisonments, torture, the electing of puppets
representatives etc. This behavior reminds us of the worst days of the
Stalinist regime. Albanians in Montenegro do not deserve this treatment
because they have been the most loyal minority in the former Yugoslavia.
This being said, I hope that Montenegro’s path toward democracy be a quick
and prosperous one.

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