Montenegro is in the process of formulating new legislation aimed at establishing a cohesive framework for evaluating foreign investments in sectors deemed strategically sensitive. This initiative marks the country’s first attempt to create a systematic approach to foreign investment scrutiny.
The proposed regulations will specifically target investors from outside the European Union, as well as companies registered in Montenegro or the EU that are under the control of non-EU investors. The law will enable the review of transactions where an investor seeks to gain direct or indirect control, significant influence, or acquires at least 10% of a company’s ownership or voting rights.
Investment screening will encompass various critical sectors, including energy, transportation and logistics infrastructure, ports, airports, railways, telecommunications, cybersecurity, water supply, healthcare, biotechnology, financial systems, and media. Additionally, other areas identified for protection include electoral infrastructure, defense, artificial intelligence, critical technologies, agricultural land, food production, sensitive data, and strategic raw materials.
The Ministry of Economic Development is tasked with drafting the new law and managing the review process. It will also act as Montenegro’s liaison for collaboration with the European Commission and EU member states. A dedicated unit will be established to handle applications, evaluate transactions, and coordinate efforts with other governmental departments.
Currently, Montenegro only conducts investment screenings related to the production and sale of weapons and military equipment. The government emphasizes that the broader screening system is designed to detect potential security and public order risks while not impeding legitimate foreign investment.
This legislative move aligns with Montenegro’s ongoing efforts to harmonize its regulations with EU standards as part of its accession journey.
