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Lukovo Šugarje, a village in the Velebit canal, 15 km south of Karlobag. Mentioned as a settlement already in the Middle Ages, but in the XVII. st. desolate and inhabited by a new population. The coast north and south of the village is very steep. Numerous ravines and dry coves on the coastal slope end in small flooded coves. Due to the size and shape Lukovo Šugarje is an ideal shelter for smaller boats; muddy bottom provides extremely safe anchoring.