Vanja Bokan conducted his illegal cigarette, oil, metal, and other essential goods business with the knowledge and support of Slobodan Milošević, Milo Đukanović, and the intelligence services of Serbia and Montenegro. Despite the collapse of socialist Yugoslavia amidst the harsh conditions of war and transitional economies, the mafia from Serbia, Croatia, Bosnia and Herzegovina, and other republics cooperated effectively. In fact, their collaboration was exceptionally close. Beyond illegal trade in cigarettes and oil, arms, drugs, and women for prostitution were also widely trafficked. Hence, it is not surprising that hundreds of mafia killings occurred in the first three decades after Yugoslavia’s disintegration.

Stanko Subotić Cane

The series of bloody clashes in Serbia in the mid-1990s was triggered by the so-called “tobacco wars,” which began when two tycoons decided to disrupt Vanja Bokan’s operations. The first of them was Stanko Subotić Cane. Starting as a tailor and one of Bokan’s employees, Cane eventually became one of the most powerful mafiosi in Europe, residing in Switzerland and operating offices in Dubai. Cane leveraged Bokan to penetrate Montenegro’s tobacco business, offering his associates a larger share of the profits than Bokan. He opened duty-free shops and kiosks that sold illegal cigarettes.

Marko Milošević

The second competitor to Bokan was none other than Slobodan Milošević’s son, Marko. Milošević Jr. entered the world of organized crime after interacting with Serbian auto-racing drivers who sold vehicles to Serbian paramilitary commanders in Croatia and Bosnia and Herzegovina. Milošević operated a nightclub in Požarevac named Madonna, serving the elite of Southeastern Europe, including wanted members of Serbian criminal organizations. Additionally, he was involved in smuggling various goods through Serbia, including cigarettes, oil, stolen cars, and drugs like cocaine. He owned numerous assets (e.g., 17 luxury cars) and even “Bambi Park,” a Serbian version of Disneyland. According to Serbian organized crime authorities, Marko Milošević ordered the destruction of duty-free shops selling rival illegal cigarettes in Serbia. His mother, Mirjana Marković, instructed customs officials to allow her son to freely import and export illegal goods to and from Serbia.

 

EU Indictments

In 2002, after years of investigation, European prosecutors filed charges against two American corporations, RJ Reynolds and Phillip Morris, for participating in illegal nicotine trade. Two years later, Phillip Morris reached a settlement with the EU, absolving the company of any responsibility. Additionally, the company agreed to cooperate with the EU in combating the tobacco mafia. RJ Reynolds denied any involvement in illegal trade.

The EU indictment claimed that Balkan cigarette smuggling was closely linked to laundering money earned from the illegal Colombian drug trade. It alleged that the Montenegrin state earned hundreds of millions of dollars through cigarette smuggling. Two Montenegrin companies overseen by Đukanović and his associates earned $20 per carton of cigarettes. Collaborators of the Montenegrin Tobacco Transport Company (CPD) included Italians who later became the subject of investigations in Italy and Serbia.

The EU indictment stated that “CPD was established by certain members of organized crime in collaboration with Montenegrin government officials. The company had official approval from Montenegro’s Foreign Investment Agency, and its management enjoyed special protection from Milo Đukanović.” As early as 1994, EU institutions were aware that Montenegro’s tobacco mafia caused annual tax losses of £4-6 billion, with the UK and Italy being the most affected. Đukanović claimed that Montenegro’s annual revenue from cigarette trade was £20 million, enabling the country to cover most state expenses.

 

The Milošević-Đukanović Conflict

With the emergence of rival tobacco mafias, a political war between Milošević and Đukanović erupted in 1997. The two leaders ruled over republics where the mafia had taken over key positions in political and economic life. Politicians relied on gangsters to intimidate the opposition. However, Đukanović realized that Milošević’s strategy of opposing the West would not yield long-term positive outcomes. Thus, he began opposing Milošević and implementing a pro-Western policy in Montenegro.

Within weeks in 1997, many leading members of the tobacco mafia were shot dead in broad daylight on the streets of Belgrade, Podgorica, Budva, and other cities. The Deputy Foreign Minister of the Federal Republic of Yugoslavia was killed in a Belgrade restaurant while holding a suitcase containing 700,000 Deutsche Marks earned from cigarette smuggling. Next was Đukanović’s security chief, murdered in his home. They were killed by their associates. “People ordered murders as they ordered a cup of coffee,” said one Serbian minister. Although the list of victims grew longer, smuggling and money flow continued unabated.

Author: Matija Šerić