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Situated at the southern end of the Dinaric Alps, Montenegro is almost entirely mountainous, with a small coastline along the Adriatic. It consists of two regions: the barren karst of Montenegro proper, on the west, is separated by the Zeta River and its plain from the higher Brda region, on the east, which has forests and pastures. In addition to the capital, other principal cities are Cetinje, Niksic, and Kotor, the only Adriatic port of Serbia and Montenegro. The Montenegrin people are mostly Serbs who, while sharing a language, many customs, and an Orthodox faith with other Serbs, nevertheless are recognized as a separate ethnic nationality with a distinct history.
Traditionally, the raising of sheep and goats have been important occupations in Montenegro. In recent years, smuggling is said to have supplied about a third of the government's revenues. Agriculture, mainly in the Zeta valley and near Lake Scutari (which forms part of the Albanian border), is poorly developed, with only about 6% of the country cultivated. Industry is also relatively underdeveloped, except for aluminum and steel mills. Montenegro has significant deposits of iron, bauxite, and petroleum.
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