Page 112 - SE Outlook Regions 2023

While the smelter’s fate is still unknown, in November Montenegro won
another case filed by Russian billionaire Oleg Deripaska regarding his
investment in KAP. The Court of Appeal in Sweden has ruled in favour
of Montenegro in the case.

Deripaska has asked the court to annul a decision from 2019 related to
the privatisation of Montenegro’s sole aluminium smelter and of the
bauxite mining company Rudnici Boksita.

In 2019, the Arbitration Institute of the Stockholm Chamber of
Commerce rejected the case for compensation brought by RDeripaska
over the bankruptcy of KAP and Rudnici Boksita.

Deripaska claimed that Montenegro had breached its obligations to
protect foreign investment after CEAC lost money that it had invested in
KAP. However, according to the arbitration tribunal, Deripaska was
incorrect, as an agreement between Russia and the former Yugoslavia
did not apply to Montenegro.

Montenegro recorded a net foreign direct investment (FDI) inflow of
€213.92mn in the first nine months of 2022, up 70% from the same
period a year earlier, according to the latest available central bank data.
Investments in companies and banks amounted to €52.11mn
(unchanged y/y), while €121.9mn went to real estate investments (up
138% y/y).

In August, entrepreneurs from the Montenegrin diaspora set up an
investment network to support the local economy. The Montenegro
Investment Fund – Diaspora Business Network (MIF) will aim to provide
funds directly to Montenegrin companies, aiming to help the country
become a key tourist and investment destination.

The MIF will also support investments in IT, solar energy, as well as
privatisation of state-owned companies via public-private partnerships.

The companies that are members of MIF will provide 10% of their profit
gained through investments in humanitarian projects.

3.7.4 Energy & power

Montenegro’s government has drafted a roadmap to achieve its goals
for becoming a carbon neutral country, setting a goal to reduce carbon
emissions by 35% by 2030. The country has already reduced emissions
by 30%, fulfilling its previous goal set back in 2015. It hopes that the
reduction of carbon emissions can even reach 40% by 2030 thanks to
new systemic measures in the forestry and agriculture sectors.

In April, Montenegrin power company EPCG said it will invest around
€1bn within five years to increase its renewable energy capacity to
2,000 GWh per year. The country usually has 240 sunny days during
the year and has significant potential to produce electricity from hydro,
wind and sun. It hopes to start exporting green energy.

In 2023, Montenegro hopes to put into operation the 54 MW Gvozd
wind park that would produce 150 GWh per year.

112 SE Outlook 2023 www.intellinews.com