Montenegro is withdrawing its statement regarding the frozen assets of Russian individuals on the blacklist that were submitted to the EU.

Against the backdrop of a full-scale Russian invasion of Ukraine in February 2022, Montenegro, previously a close ally of Moscow, announced its joining of Western sanctions against the Kremlin after some delay. Shortly thereafter, Podgorica, a NATO member and EU candidate, declared the seizure of assets belonging to Russians who had been blacklisted by Brussels. This move was welcomed by the media, making headlines throughout the Balkan region, and was included in the official report of the European Commission, the main executive body of the EU. There was only one problem: it was not true. Instead of dozens, Podgorica froze the assets - an apartment and a storage facility - of just one Russian citizen who had been blacklisted by the EU, as reported by the Balkan service of RFE/RL.

For many years, Montenegro, especially its Adriatic coast, has attracted wealthy Russians looking to invest their wealth in real estate. Even now, the support of Montenegro by Western sanctions does not seem to deter Russians from purchasing apartments, villas, and other properties in Montenegro. According to the Real Estate Registry for 2022, Russian citizens own about 19,000 properties in Montenegro, including oligarch Oleg Deripaska, who has been sanctioned by the West.

In most cases, it is difficult to identify the true owners, as many assets may be registered in the names of family members or companies, as is the case with Deripaska. However, in June 2022, then-Minister of Internal Affairs Filip Adzic announced significant success for Podgorica in combating Russian citizens who had been placed on sanctions lists and owned real estate in Montenegro.

“For 44 properties, the Real Estate Registry has made decisions to restrict the disposal of real estate in Montenegro. This applies to 34 Russian citizens who have been sanctioned,” said Adzic at that time.

However, the initial excitement was unfounded. After accessing and analyzing official documents, the RFE/RL Balkan Service learned that instead of 34, only the property of one Russian citizen, who was on the EU blacklist, was frozen. The other 33 were included by mistake. In response to questions from the RFE/RL Balkan Service, the MontenegroReal Estate Administration explained that it was an honest mistake without any intent to deceive, largely caused by initial misunderstandings and incomplete information about Russian citizens on the EU blacklist who have assets in Montenegro.

The administration of the Real Estate Registry announced that it conducted an analysis of the entire list of Russian citizens who were on the EU sanctions list at that time, in search of possible matches with Russians owning assets in Montenegro. As a result, 34 individuals were found whose names and surnames matched those included in the EU blacklist.

“Decisions were made ... to freeze access to real estate [in Montenegro] due to the assessed risk that the specified assets could be sold or used as collateral for obtaining bank loans,” the statement from the Real Estate Registry Administration says.

Ines Mrdovic, an activist from the NGO "Action for Social Rights," which focuses on protecting citizens' rights, accuses Montenegrin institutions, which have become the center of a scandal, of lacking transparency both towards their own citizens and their partners in Europe.

“It is wrong to provide the EU with information that does not reflect the actual situation on the ground,” said Mrdovich of the RFU.

The identity of the Russian citizen whose assets have been correctly frozen in Montenegro has not been disclosed. However, official documents visible to the Balkan service RFE/RL indicate that it is most likely Marat Bashirov, a Russian political strategist who was a high-ranking official in the Luhansk region of Ukraine, which is partially occupied by Russian-backed separatists.

Bashirov owns an apartment with an area of 33 square meters in Bečići on the Adriatic Sea coast of Montenegro. He is also a co-owner of a storage facility in the same building.

Mrdovich believes that the officials in Montenegro mishandled this incident, acting insufficiently transparently both towards their citizens and their European partners.

“We find ourselves in situations where one person says one thing, and another says something different. And then you start to wonder what the actual truth is. In any case, it’s terrible that our European partners are not receiving complete and accurate information,” says Mrdovich.

In recent years, Montenegro has strengthened its ties with the West, joining NATO in 2017 and starting the process of joining the EU in 2008. The country's shift towards the West has irritated Russia, its traditional ally. In 2016, a pro-Russian government was accused of attempting a coup ahead of parliamentary elections.

In October, the European Parliament adopted a resolution on Montenegro, welcoming its compliance with EU sanctions against Russia, but also expressing concern about the large number of Russian citizens, including many oligarchs, residing in Montenegro. "We urge the authorities of Montenegro to ensure that the country does not become a hub for companies and individuals seeking to circumvent sanctions," the resolution states.

During her visit to Podgorica on October 31, European Commission President Ursula von der Leyen urged Montenegro to continue its integration process into the European Union. "Montenegro has long been the most advanced country in the Western Balkans on the path to EU membership, and I am pleased to see that you are firmly maintaining this position," von der Leyen said after meeting with President Jakov Milatović.

Montenegro was granted candidate status for EU membership in 2010, but has only closed three out of 33 chapters of accession - areas of governance where aspiring EU members must implement new policies and reforms to align with the bloc's standards.

The EU delegation in Podgorica did not respond to RFE/RL's inquiries regarding this issue.