EU Sanctions Slash Russian Investments in Montenegro

The Central Bank of Montenegro. Direct investments from Russia in Montenegro fell by 73 per cent since the introduction of European Union sanctions aimed at hobbling Russia’s war effort in Ukraine, the Central Bank of Montenegro has told BIRN. “During the observed period, a decline in the inflow of Foreign Direct Investment from Russia was recorded, mostly as a result of a decline in real estate investments and investments in local companies and banks,” the bank said.

“In 2025, the total inflow of Foreign Direct Investment from Russia amounted to 33.98 million euros, or 73.28 per cent less than in 2022,” it added According to bank data, the total inflow of FDI from Russia since 2022 amounts to 373.84 million euros so far. In March 2022, the EU candidate state agreed to implement the sanctions imposed by the European bloc on Moscow for its full-scale invasion of Ukraine, which included freezing the assets of Russian citizens and companies on the sanctions list. As part of the EU’s restrictive measures, Montenegro has banned Russian flights through its airspace and access to its airports, and suspended transactions with the Central Bank of Russia. Use of the SWIFT system for seven Russian banks was banned, as were broadcasts of Russian state media. The Central Bank said that of a total of 33.9 million euros in direct investments from Russia recorded last year, 17.8 million euros was invested in real estate and 6.47 million euros in local companies and banks. Total direct investments from Russia amounted to 100.1 million euros in 2024, rising to 112.5 million in 2023 and rising again to 127.1 million euros in 2022. According to the Central Bank, around half of the investments each year were for the purchase of real estate. The Central Bank did not respond to BIRN’s question about whether it has reported suspicious transactions or potential money laundering cases involving Russian citizens since the introduction of the sanctions. “If, through transaction control and monitoring clients’ business activities, the Central Bank determines irregularities in the application of indicators of suspicion, as well as in the process of identifying and reporting suspicious transactions, it will immediately notify the competent Department for Financial Intelligence Affairs of the Police Directorate,” the bank said. Montenegro is currently the frontrunner among Balkan states to obtain EU membership. A candidate country since 2010, it hopes to join the club as its 28 th member in 2028. The bloc is meanwhile preparing new sanctions on Russia, according to media reports.

Key points

• “In 2025, the total inflow of Foreign Direct Investment from Russia amounted to 33.98 million euros, or 73.28 per cent less than in 2022,” it added According to bank data, the total inflow of FDI f…
• In March 2022, the EU candidate state agreed to implement the sanctions imposed by the European bloc on Moscow for its full-scale invasion of Ukraine, which included freezing the assets of Russian…
• As part of the EU’s restrictive measures, Montenegro has banned Russian flights through its airspace and access to its airports, and suspended transactions with the Central Bank of Russia.
• Use of the SWIFT system for seven Russian banks was banned, as were broadcasts of Russian state media.
• The Central Bank said that of a total of 33.9 million euros in direct investments from Russia recorded last year, 17.8 million euros was invested in real estate and 6.47 million euros in local comp…