European Parliament’s resolution on Montenegro vindicates Central European Aluminum Company

The resolution on the European Commission’s 2015 Progress Report on Montenegro was adopted by the European Parliament’s Foreign Affairs Committee on February 23. The vote was hailed by the Central European Aluminum Company (CEAC).

In a press release, the CEAC said: “We are heartened by the overwhelming support of the Committee for a sustainable and negotiated solution to the KAP dispute and are particularly encouraged by its call for a full and independent audit into the dispute. The magnitude of that support [50 in favour, 3 against] is testament to how seriously the Committee takes the KAP dispute and the deep corruption within Montenegro, and we urge all members of the European Parliament to give their full support to this strong resolution in plenary session in March”.

The dispute refers to the controlling stake in the KAP aluminium smelter and nearby bauxite mine in Montenegro that was acquired by CEAC in 2005.

According to the European Parliament, CEAC invested over €200m to modernise the smelter, but was illegally stripped of its assets and removed from the management of KAP by the government of Montenegro.

In defence, CEAC initiated international arbitration proceedings against the government of Montenegro.

CEAC was established in 2005 to manage the aluminium business interests of the En+ Group in Central and Eastern Europe. Its portfolio includes Aluminum Plant Podgorica and Bauxite Mines Niksic, both in Montenegro, and Alumina Refinery Cemtrade in Oradea, Romania.