A year after signing a 50-year lease agreement, Montenegro’s state-owned power company, Elektroprivreda Crne Gore (EPCG), terminated its contract with Russian-Israeli businessman Igor Shamis over failure to meet obligations at the Nikšić steel plant, a subsidiary of EPCG.
Shamis had committed to invest €7 million within a year, employ 150 workers, and spend €36 million over five years. However, he failed to pay monthly lease fees, and EPCG covered employee salaries during the past year. Following multiple warnings, the contract was unilaterally terminated on 23 July 2025.
EPCG officials claim the company suffered no financial loss from the deal, noting that Shamis still owes €700,000, and that the factory now operates positively, producing steel structures for solar panels with a first-half profit exceeding €400,000.
Energy Minister Admir Šahmanović emphasized the need for careful future decision-making to ensure the plant’s stability, employment, and long-term functionality, suggesting potential strategic partnerships or business model changes.
Shamis previously owned Željezara 20 years ago through the Midland Group, leaving the plant with debts and unpaid taxes. EPCG asserts it verified his business credibility before signing the 2024 lease, but questions remain over accountability for the failed contract.
Nikšić steel now operates without Shamis, under EPCG management, producing non-steel components for renewable energy projects.
