Cash and Carry; Tiny Montenegro rides high on Russian money.

Byline: Owen Matthews

Russians just love Montenegro. The tiny republic, which became the world's newest nation after voting recently for independence from neighboring Serbia, is an island of Slavic culture on one of the most beautiful stretches of the Adriatic. The religion is Orthodox. The local Serbian dialect is readily understandable by Russian speakers. And it's one of the last Mediterranean destinations not requiring visas for Russians.

No wonder they're descending on the place in droves. What more could the place possibly offer? Well, for one thing--extremely liberal laws on cash. Unlike most other places in Europe, Montenegro has no problem with folks who come bearing suitcases full of money, especially if they pour such lucre into the local economy. And that, of course, is exactly what Russians are doing in ever-growing numbers. According to British real-estate consultant Ian Giddings, property prices in popular seaside resorts like Kotor and the nearby Lustica peninsula have doubled in the past year alone, thanks largely to Russian money.

As many as six charter flights have been arriving daily at Tivat airport this summer from Moscow and other cities, reports Andrei Sazonov, a Russian real-estate agent in Herceg ...