The Administrative Court annulled the unlawful registration of the Solana Bajo Sekulić land as state property, ruling that the saltworks never belonged to the state but to a publicly traded joint-stock company. The previous government’s decision to register this private company’s property as state-owned—without court approval, compensation, or legal basis—has now been legally overturned, restoring shareholders’ rights to use the property.
The shareholders emphasized that this issue is linked to Montenegro’s EU accession, particularly Chapter 27 on Environment and Climate Change, but argued that the state neglected fundamental legal principles of property rights, rule of law, and legal certainty under Chapters 23 and 24. This created a legal imbalance that could hinder Montenegro’s EU integration.
According to shareholders, all Montenegrin governments were legally obligated to convert the company’s usage rights into ownership rights under Article 419 of the Property-Legal Relations Act (ZOSPO), but failed to do so, violating the law by inaction.
The case of Solana is exceptional compared to other privatizations where such conversions were done without dispute. The recent court decision restored the company’s usage rights, and authorities must now promptly fulfill their legal duty to convert these rights into ownership to avoid severe legal and financial consequences, including potential lawsuits exceeding €200 million at domestic and international courts, including the European Court of Human Rights (ECHR).
The shareholders stressed that the court ruling only temporarily prevented financial collapse and that failure to comply with the law could result in state liability both domestically and internationally.
They also pointed out that state and public funds were shareholders in Solana through stock transactions, meaning the state itself acknowledged the legitimacy of private ownership. The administrative re-registration of the property as state-owned violated legal security and privatization principles.
The shareholders rejected claims that Solana’s land was bought for €0.05 per square meter, clarifying that no direct sale of land occurred; rather, shares of the company were traded on the stock exchange, with prices reflecting market value. Simplistic calculations equating share prices to land value are misleading and legally incorrect.
Finally, shareholders expressed willingness to discuss protected status for the area, including its designation as a Nature Park, but insisted that private property rights cannot be revoked without compensation or legal process, drawing parallels to other protected areas in Montenegro where private ownership remains respected.
They called for political and institutional actors to abandon populism and engage constructively, emphasizing that this case tests Montenegro’s commitment to the rule of law and property rights—crucial for attracting investments, especially foreign.
