THE LARGEST WINE PRODUCER OF MONTENEGRO IS ON THE BRINK OF BANKRUPTCY

It is reported that the winery has accumulated tax arrears of € 4.5 million. Another € 7.5 million are wage arrears and contributions to the state budget.

In addition, the company carries significant risks of litigation from suppliers, the obligations to which have approached the $ 6 million mark.

Plantaže's head office is located in the capital of Montenegro, Podgorica. The enterprise has existed since 1963 and traditionally specializes in the production and sale of wines, grape brandy, and also engaged in fish farming, growing table grapes, peaches and working in the catering market. The largest European vineyard, owned by the company, spreads over an area of ​​2,310 hectares south of the capital. The number of plantations exceeds 11 million vines.

Over the past few years, the company has faced significant challenges - the traditional export of products to more than 30 countries around the world has declined. Sales, which were previously estimated at 17 million bottles per year, significantly fell. Due to the pandemic, Montenegro lost many tourists in 2020 and a whole market for importing wine with them.

Along with the global economic reasons associated with the pandemic, one of the factors of the company's losses could be the anti-Russian sanctions that were previously imposed by the republic's authorities.

It was indicated last summer by the leader of the local opposition, Zdravko Krivokapich, who later became the prime minister. Krivokapic claims that the main tourist flow to Montenegro previously came mainly from Russia, with the exception of the closest neighbors (Serbia, Bosnia and Herzegovina).

In the nearest future, the company needs at least € 5 million in order not to become bankrupt. Apparently, the government will provide financial assistance to the company, market analysts say, relying on Krivokapich's recent statement that Plantaže is a treasure of the republic that must be saved.

This fact is confirmed by the statement of the Minister of Agriculture, Forestry and Water Management Alexander Stijovich, who recently announced the dissolution of the company's board of directors and the reduction of their number from 13 to 5 people.

According to the minister, there are good grounds to involve law enforcement agencies in the investigation of the situation and to identify persons responsible for the plight of the country's leading company.

Along with the problem of the financial burden that prevents the company from obtaining new loans and restructuring production processes, Stijovich drew attention to the need to sell more than 20 million liters of wine due to the lack of storage space. He named Russia as one of the attractive markets for this, the interaction with which, according to the minister, was disrupted due to the “wrong political decisions”.