Russians are opening accounts in Serbia to trade real estate in Montenegro.

The sanctions imposed on the Russian banking system have significantly reduced the number of Russian citizens purchasing real estate in Montenegro, reports the agencyMontenegro Prospects, which has been active in this market for many years.

The European Union (EU) sanctions against Russia, imposed due to the invasion of Ukraine, include a ban on financial transactions for key Russian banks, which also applies in Montenegro, which aligns its foreign policy with the EU. "It is impossible to send money to Russia and receive money from that country, and the problem also lies in the closure of accounts for non-residents," says real estate broker Ivan Dashich to Radio Free Europe (RFE).

Many of their clients who purchased real estate and did not have residency in Montenegro received notifications from banks to provide documents for temporary or permanent residency in order to maintain their bank accounts. Those who did not comply had their accounts closed and contracts with the bank terminated, adds Dashich, and due to all these restrictions, Russians are no longer their largest group of foreignreal estate buyers.

In Montenegro, a total of 11,661 Russian citizens currently hold temporary and permanent residency, according to the Ministry of Internal Affairs of RSE. Those without a residency permit cannot open a bank account, as stated by a Russian woman named Olesya, who has permanent residency in Budva and works in the real estate sector. Since most Russians do not have accounts in a third country, she explains that it is difficult for them to sell their property if they want to withdraw money from Montenegro. Several banks in Budva have confirmed to RSE that Russian citizens need proof of temporary or permanent residency in Montenegro and proof of employment to open an account. However, Olesya says that this is difficult to achieve, although she notes that it is possible to open an account in two banks. "In most banks, proof of residency and employment is required to open a bank account, and to get a job or obtain proof of residency, you need to have a bank account, so it's a vicious circle," Olesya explains.

Options for making transactions under sanctions: "There is an opportunity to make transactions using cryptocurrency, but this has not yet become widespread, especially among people over 45, who are usually property owners here," says Dashich.