Montenegro’s dual moment: Sveti Stefan reopens as old ‘coup plot’ prosecutors face indictment
In a sunlit statement that will be read differently on seaside promenades and in court corridors, montenegro now faces two stories that touch both money and meaning: the long-idled Sveti Stefan resort village is set to reopen under new settlement terms, even as the Special State Prosecutor’s Office has indicted former prosecutors in the controversial 2016 ‘coup plot’ case.
What does this mean for Montenegro’s tourism?
The government says the settlement over the Sveti Stefan lease removes the immediate risk of a large payment that could have exceeded 100 million euro and clears the way for the resort complex to reopen. Under the new deal, rent paid by Adriatic Properties will be raised in total by 500, 000 euro, the government will gain the right to take 10% of annual profit from the leased properties, and the leasehold period will be extended by five years to cover the time the resort was idle.
Petros Stathis, identified in corporate records as head of Adriatic Properties’ board, remains the company contact named in the lease history. The properties involved include the Sveti Stefan island resort, the nearby Villa Milocer and the Queen’s Beach hotel — sites that after the 2007 lease became accessible primarily to paying guests and prompted local protests when access was restricted. Local opposition culminated in 2021 when residents broke the fence around Queen’s Beach, an episode that helped trigger the dispute now settled.
Vladislav Doronin, who is named as owner and chair of Aman Resorts, is cited as operator of the Sveti Stefan resort and Villa Milocer. Novak Djokovic, described earlier as a Serbian tennis star and global ambassador for Aman Resorts, said he was entrusted by Aman Resorts with the task to mediate in their dispute with the Montenegrin government in order to jointly find a solution to reopen the complex.
How are the 2016 ‘coup plot’ allegations being addressed?
The Special State Prosecutor’s Office has filed an indictment charging former Chief Special Prosecutor Milivoje Katnic and prosecutor Sasa Cadjenovic with abuse of office and unlawful influence related to the so-called ‘coup plot’ proceedings. The indictment alleges the two prosecutors agreed an arrangement with the legal representative of Joseph Assad, a US citizen and former CIA officer, to have him testify in a way favorable to the prosecution in exchange for assurances he would not be arrested or prosecuted.
Joseph Assad was at one time under suspicion in the case but was never charged and has rejected the allegations as false. Toby Cadman, of Guernica 37 Chambers, who represents Assad, said: “Assad was subjected to a course of conduct that constituted significant undue pressure to give evidence against the defendants in the so-called coup trial. ” Cadman added that Assad was “unduly influenced to provide a pre-prepared statement, with the explicit threat of prosecution should he refuse to comply” and that he has been “fully exonerated by the courts. “
Ljubomir Rakovic, lawyer for Milivoje Katnic, said he had “not had the opportunity to review the indictment proposal. ” The broader case once led to convictions that were later overturned after a retrial; the Appeals Court in Podgorica upheld acquittals most recently.
What are the social and institutional stakes for Montenegro?
These developments intersect along social, economic and institutional lines. The Sveti Stefan settlement reshapes public access, municipal revenue and tourism branding: the government gains a share of profit and a higher rent, while Adriatic Properties and Aman Resorts regain operational clarity. For locals who challenged restricted access and for a country that sells itself as an exclusive destination, the reopening is both an economic relief and a test of how public space and private development can be balanced.
On the legal front, the indictment of former prosecutors touches institutional trust. The Special State Prosecutor’s Office frames the move as an effort to address alleged misconduct in a politically charged case that once centered on an alleged plan to prevent the country joining a military alliance. Cadman’s statements underline the claim that a witness was pressured; the defendants in the original trial include figures who were later acquitted.
Taken together, the tourism settlement and the prosecution’s action signal simultaneous attempts to resolve long-standing disputes: one that threatened substantial fiscal exposure and stalled a marquee resort, and another that raises questions about prosecutorial conduct, witness handling and the rule of law.
Back on the Adriatic shore where fishermen once walked the narrow streets of the island, the reopening of Sveti Stefan will bring visitors again to a place that has drawn global names in the past. Yet in courtrooms and public debate, the pursuit of clarity about how the 2016 events were handled continues — a reminder that economic recovery and institutional reckoning can be parallel, unfinished processes.
