In light of the announcement from the shareholders of Bajo Sekulić Saltworks AD, currently in bankruptcy, regarding the recent Administrative Court ruling that annulled a Ministry of Finance decision from June 2022, the Center for Bird Research and Study (CZIP) has responded. They assert that the oldest company in Ulcinj was never the owner of the land but merely a user or concessionaire of 15 million square meters.

On April 28, 2025, the Administrative Court of Montenegro ruled in favor of Solana “Bajo Sekulić” AD Ulcinj and the State of Montenegro, declaring the prior decision of the Ministry of Finance from June 2022 invalid and thereby questioning the state’s ownership registration of the land.

“This ruling does not address ownership of the land where the Ulcinj Saltworks is located. Rather, it indicates that the procedure for recording state ownership was improperly conducted and mandates a new process involving all stakeholders, adhering strictly to legal protocols,” states the CZIP correspondence.

Following the verdict, public misconceptions arose suggesting that the land had been “returned” to Eurofond and minority shareholders.

“Eurofond was never the land’s owner; it was solely the majority shareholder of the salt production facility. The real estate cadastre never listed the land as Bajo Sekulić’s property but acknowledged its right of use, governed by state concession agreements, the most recent of which was signed in 1995 for a decade. This indicates that ownership rights rest with the state. These agreements allowed Bajo Sekulić to utilize the land and water for salt production, contingent upon paying a concession fee,” according to CZIP.

The media letter indicates that the nature of Solana’s usage rights raises legal questions.

“The company functioned as a concessionaire, not a holder of management or permanent usage rights. Under the Law on Property and Legal Relations, specifically Article 419, a concessionaire cannot claim land ownership based on that right, either during or post-contract. Thus, Bajo Sekulić never gained ownership rights to the land nor paid market compensation during privatization or any lawful activity to establish ownership,” CZIP claims.

They emphasize that the Administrative Court’s decision should not be misrepresented to the public, as it does not affirm or assign land ownership to any entity.

“It shows that the state lacked the legal grounds to declare itself the landowner, according to Articles 419 and 420 of the Law on Property and Legal Relationships, since it had not been cataloged as possessing management or permanent usage rights. For the state to achieve ownership, it must initiate appropriate civil or administrative procedures and substantiate the grounds for ownership rights. This judgment effectively paves the way for a lawful re-evaluation of the case, ensuring transparent involvement from all parties: the Saltworks’ bankruptcy administration, the state, Ulcinj municipality, civil organizations, and international monitors focused on the Saltworks’ protection,” the letter elaborates.

Particularly noteworthy is that the Ulcinj Salt Pan is designated as a protected area; recognized as a Nature Park and a vital habitat for migratory birds. According to CZIP, resolving ownership issues is crucial for the long-term safeguarding of this region, facilitating planned water management and alignment with Montenegro’s European Union commitments.

“Thus, we clarify—this ruling does not restore ownership to any private entity, nor does it validate or refute state ownership. The Administrative Court ruling explicitly allows the state to pursue a lawsuit for ownership through civil or administrative means without addressing the substantive registration issue, merely contesting the procedural elements regarding the registration initiated by Eurofond. The Commercial Court sought the Privatization Council’s guidance on property-legal relations, which should have been provided as evidentiary material for resolving this lawsuit,” the letter concludes.

Consequently, CZIP, acting as the protector of property-legal relations, urges the state’s legal representative to promptly initiate a new court proceeding that is wholly transparent and dedicated to preserving public interests, the Saltworks’ natural values, and ensuring legal security for all involved parties.

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