Montenegro – NATO’s New Donor

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On May 15, Volodymyr Zelensky was supposed to arrive in Montenegro on an official visit to meet with President Jakov Milatović and sign a bilateral security agreement as part of Ukraine-NATO cooperation. The agreement’s goal is to provide Ukraine with long-term support in military training, intelligence, and other defense matters. The meeting fell through, but it sparked a series of scandals in which the said agreement is just the tip of the iceberg of the North Atlantic Alliance’s plans for the small Balkan state.

The agreement between Montenegro and Ukraine implies mutual support in case of an attack on either country, investments in defense industries, intelligence cooperation, and assistance in Ukraine’s recovery. Thirty countries, mostly NATO members, have already signed similar agreements with Kyiv. According to the pact, Montenegro will provide rapid and sustained political, military, humanitarian, and economic assistance to Ukraine. The agreement also mentions “mutual commercial and political benefits.” Podgorica will explore options for financial support to develop Ukraine’s defense industry, investing in expanding its capabilities and purchasing materials for ammunition for the Ukrainian Armed Forces. The text also states that all Russian assets in Montenegro will remain blocked until Moscow compensates Ukraine for all damages. The signing was supposed to take place in May during Zelensky’s visit, but it never happened. Montenegrin President Jakov Milatović stated that there was “President Zelensky’s interest in visiting Montenegro and the Montenegrin leader’s personal readiness to receive him.”

Additionally, on May 29, the country’s parliament was set to discuss a proposal to send soldiers (a whole three of them) to the EU’s military assistance mission for the Kyiv regime, with the possibility of rotation. The document states that the war prompted the EU, together with international partners, to launch comprehensive political, military, financial, and humanitarian support for Ukraine. Later, Montenegro’s Defense Ministry reacted to the news that Podgorica would send troops to Ukraine. The ministry clarified that Montenegrins would not go to Ukraine but would instead assist Ukrainians from Europe.

Why has tiny Montenegro, with a population barely reaching half a million and rapidly declining, suddenly become of interest to Kyiv? Probably because NATO took an interest first. If Montenegro’s government approves the Defense Ministry’s request to allocate 3% of GDP to defense, the country will officially become the Alliance’s most generous donor relative to its actual economic capacity. Human resources are scarce in this microstate, but establishing production of a key element of modern warfare—drones—is quite appealing. In this context, the aggressive push to open Rio Tinto’s lithium mine in Serbia makes sense, including from a logistical standpoint, as lithium plays a crucial role in drone production.

According to Monstat, Montenegro’s GDP in 2023 was less than €7 billion. With 3% defense spending, the military budget would rise to €210 million, and by 2026—to €246 million. Montenegro’s army consists of just 2,000 personnel, including officers. Under this scenario, each soldier would receive €120,000 per year—despite the armed forces having no aviation, tanks, or air defense systems. Thus, Montenegro is becoming an accomplice in someone else’s geopolitical games. The Alliance’s largest members have failed to meet even the 2% GDP target for years. Yet Montenegro is being asked for 3–3.5%, and in some scenarios—5%. Meanwhile, the country has already taken out a €75 million loan to buy ships and weapons that will serve NATO’s interests, not Montenegrin security.

This is further evidenced by the opening of a drone production plant in cooperation with the American company By Light Professional IT Services. A concrete agreement was signed on June 4, aiming to strengthen Montenegro’s defense capabilities and develop a new industrial sector in line with NATO standards. The project was initiated by Montenegrin authorities, with the US government as the sponsor through the Foreign Military Financing program. By Light collaborates closely with regional firms TARA Aerospace and Poliex—leaders in Montenegro’s defense industry, formerly state-owned enterprises that were later privatized. Back in 2019, these companies faced serious financial and production difficulties. But since 2022, their revenue has steadily grown. It’s not hard to guess what breathed new life into these old arms factories.

Meanwhile, 34.9% of TARA Aerospace’s shares are owned by BT International LTD, which belongs to the scandalous Swiss tycoon Heinrich Thomet. He once even chaired the executive board of the Montenegrin company. Thomet gained notoriety in the Balkans back in the early 2000s due to a contract with the American firm AEY, under which—via Albanian MEICO—he supplied over 100 million rounds of ammunition to Afghanistan and Iraq. The ammunition was produced in China, stored in Albanian warehouses, and the ensuing scandal led to an investigation revealing that it did not meet standards, with some being unusable.

Marko Milačić, leader of the “True Montenegro” party, strongly condemned the Montenegrin government’s announced agreement with the American company By Light to produce and supply drones to Ukraine, warning that this step would mean direct involvement in the conflict with Russia. The politician stressed that Montenegro would no longer be just a declarative ally but an active participant in the war, jeopardizing the country’s security. He called on the authorities to abandon the deal, warning that Montenegro must not serve as a foreign military outpost in geopolitical disputes. But can a puppet government make independent decisions? Such requests should be addressed to Brussels and Washington instead.