RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/15 
30 May 2006 
 (06-2587) 
Working Party on the  
Accession of Montenegro Original:   English 
 
 
   
ACCESSION OF MONTENEGRO 
 
Draft Notification Pursuant to Article XVI:1 of the GATT 1994 and 
 
Article 25 of the Agreement on S ubsidies and Countervailing Measures  
  
 The following submission, dated 12 May 2006, is  being circulated at the request of the 
Delegation of the Republic of Montenegro. 
  
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 WT/ACC/CGR/15 
Page 2  
 
 The following notification covers Stat e assistance provided from the budget of the 
Republic Montenegro in 2004.  
I. Support for economic activities  
1. Title of the subsidy  
 Programme for reconstruction and de velopment of economic activities. 
2. Period covered by the notification  
 FY 2004. 3. Policy objective and/or purpose
 
 The programme is aimed at supporting the r estructuring modernizing and preparing of 
economic entities for successful privatization in the period of transition  
4. Background authority for the subsidy  
 The Ministry of Economy as the donor has authority over assistance arrangements.  5. Form of the subsidy
 
 Loans. 6. To whom and how the subsidy is provided
 
 To economic operators, beneficiaries of the loans. 
7. Subsidy per unit or the total amount or the annual amount budget for subsidy  
 Total amount for year 2004:  € 2,652,000.00. 8. Duration of the subsidy
 
 Not specified 9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
 Not available.  WT/ACC/CGR/15 
 Page 3 
 
 
 II. Support for industry of electric machines and equipment  
1. Title of the subsidy  
 Support for industry of electric machines and equipment. 2. Period covered by notification
 
 FY 2004. 
3. Policy objective and/or purpose of the subsidy  
 Aid aimed at restructuring and preparing public enterprises for privatization.  4. Background authority for the subsidy
 
 Ministry of Finance. 5. Form of the subsidy
 
 Loans and credits to enterprises. 
6. To whom and  how the subsidy is provided   
 To electric industry "Obod".  7. Subsidy per unit or the total amount or the annual amount budget for subsidy
 
 Total amount for year 2004:  € 2,340,000.00. 
8. Duration of the subsidy  
 Not specified 9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
 Not available. WT/ACC/CGR/15 
Page 4  
 
 The following notification covers Stat e assistance provided from the budget of the 
Republic Montenegro in 2005.  
I. Support for economic activities  
1. Title of the subsidy  
 Programme for reconstruction and de velopment of economic activities. 
2. Period covered by the notification  
 FY 2005. 3. Policy objective and/or purpose
 
 The programme is aimed at supporting the r estructuring modernizing and preparing of 
economic entities for successful privatization in the period of transition. 
4. Background authority for the subsidy  
 The Ministry of Economy as the donor has authority over assistance arrangements.  5. Form of the subsidy
 
 Loans. 6. To whom and how the subsidy is provided
 
 To economic operators, beneficiaries of the loans. 
7. Subsidy per unit or the total amount or the annual amount budget for subsidy  
 Total amount for year 2005:  € 1,760,000.00. 8. Duration of the subsidy
 
 Not specified. 9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
 Not available.  WT/ACC/CGR/15 
 Page 5 
 
 
 II. Support for ferrous metallurgy  
1. Title of the subsidy  
 Support for "Zeljezara"- Montenegrin steel producer. 2. Period covered by notification
 
 FY 2005. 
3. Policy objective and/or purpose of the subsidy  
 Aid aimed in supporting privatization of "Zeljezara". 4. Background authority for the subsidy
 
 Ministry of Economy. 5. Form of the subsidy
 
 Grants. 
6. To whom and  how the subsidy is provided   
 The Government of Montenegro was obliged to compensate the price difference between the 
real price and agreed price for electricity, which "Zeljezara" purchases from "Elektroprivreda" (Company for electric energy production). 
7. Subsidy per unit or the total amount or the annual amount budget for subsidy
 
 Total amount for year 2005:  € 641,551.61.  Subsidy per unit is 0.0044 €/kwh. 8. Duration of the subsidy
 
 The contract between the Government M ontenegro and "Midland Resources Holding" 
(former majority owner of "Zeljezara") was a nnulled at the end of 2005 and there is no 
subvention in 2006.   
9. Statistical data permitting an assessmen t of the trade effects on the subsidy  
 Not available. 
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