PMI: Montenegro records lowest level of illicit cigarette consumption since monitoring began

The latest KPMG study on the illicit tobacco market in Europe, conducted on behalf of Philip Morris International (PMI), indicates that Montenegro recorded its lowest level of illicit cigarette consumption in 2025 since monitoring of the market began, representing a decline of 4.6 percentage points compared to 2024.

The publication of the latest data and international analyses confirming Montenegro’s significant progress in combating the illicit trade in tobacco products demonstrates that, for the first time in decades, the country has succeeded in establishing effective control over an area that had long been recognised as one of the key regional hubs for cigarette smuggling.

These results did not occur by chance. They are the outcome of strong political will, coordinated institutional action, and the state’s determination to address a problem that for decades caused substantial damage to public finances, undermined institutions, weakened the rule of law, and harmed Montenegro’s international reputation.

A particularly important role in this process was played by the Coordination Body for the Inventory and Destruction of Tobacco Products in the Free Zone of the Port of Bar, which carried out one of the most demanding operational undertakings in the fight against tobacco smuggling in Montenegro’s history.

Thanks to the work of the Coordination Body and partner institutions, a comprehensive inventory was conducted and 138,000 packages of cigarettes and other tobacco products were destroyed. These products had for years represented a serious security, fiscal, and reputational risk for the state. This sent a clear message that Montenegro will no longer serve as a safe destination for illicit tobacco flows or as an environment in which organised crime can rely on institutional support or passivity.

A particular value of the entire process lies in the fact that it was carried out in accordance with the highest standards of transparency and oversight. All activities were implemented with the continuous involvement of multiple state authorities, in cooperation with international partners, notably His Majesty’s Revenue and Customs (HMRC) of the United Kingdom and Europol, under constant video surveillance and through the use of modern industrial destruction equipment operated by Deponija, a state-owned company. This eliminated any possibility of manipulation, product substitution, or the reappearance of the goods on the illicit market.

What once symbolised a decades-long problem has now become an example of institutional determination and the state’s capacity to conduct complex operations in the public interest. The destruction of seized tobacco products was not merely a technical exercise in removing goods from circulation; it represented a significant blow to the infrastructure of smuggling networks and clear evidence that institutions can act together in a professional and responsible manner.

It is particularly important to emphasise that the results now confirmed by relevant international analyses are not the product of isolated actions, but rather the result of synergy among all stakeholders involved – the Government of Montenegro, competent ministries, the Customs Administration, the Police Directorate, the National Security Agency, the State Prosecutor’s Office, state-owned enterprises, and international partners that monitored and supported the process.

Of crucial importance in suppressing cigarette smuggling has been the proactive, professional, and non-selective work of the Special State Prosecutor’s Office and the Special Police Department, which have prosecuted members of virtually all organised criminal groups involved in cigarette smuggling. In certain cases, convictions have already been secured, producing a strong effect of both general and specific deterrence.

When credible international research now records a substantial decline in illicit tobacco trade and recognises Montenegro’s progress, it also confirms that decisions once considered politically and operationally impossible were both necessary and correct. It demonstrates that determined institutional action can achieve results that for years appeared unattainable.

The fight against smuggling has succeeded thanks to strong political commitment, a non-selective approach, and strategic planning. The results we see today show that a historic breakthrough has been achieved and that the state has demonstrated its capacity to protect its financial interests, strengthen the rule of law, and fulfil its obligations in the EU accession process.

Montenegro has shown that no one is untouchable and that the interests of the state must prevail over the interests of criminal structures. For this reason, the activities of the Coordination Body and all partner institutions represent one of the most significant contributions to the overall results now recognised both domestically and internationally.

We remain committed to continuing this policy, convinced that transparency, inter-institutional cooperation, and zero tolerance for smuggling are the only path towards a stronger economy, a safer society, and a more credible state.