A planned pipeline to link Bosnia and Herzegovina with a liquefied natural gas terminal in neighboring Croatia — the Southern Interconnection — could imperil Sarajevo’s ambitions to join the European Union.
The project is intended to reduce Bosnia’s near-total reliance on Russian gas by connecting the country to the wider European gas market. Diversifying away from Russian energy has become a political priority across the EU and its aspirant states since Russia’s full-scale invasion of Ukraine.
The dispute is less about the technical merits of the pipeline than about how the contract is being awarded. In March, lawmakers in Bosnia passed legislation that critics say effectively designates a single US-based firm, AAFS Infrastructure and Energy, as the project investor. The company, reportedly established in late 2025, is described in reports as having no known experience building pipelines — a fact that alarmed officials in Brussels.
EU Ambassador to Bosnia-Herzegovina Luigi Soreca urged Bosnia’s leaders to respect their commitments under the Energy Community Treaty and to align national energy laws with recommendations from the European Commission. While the EU supports efforts to reduce dependence on Russian supplies, Soreca and others insist that infrastructure projects must follow transparent procedures and public procurement rules.
Local transparency campaigners have voiced similar concerns. Ivana Korajlic of Transparency International in Bosnia-Herzegovina warned that bypassing open competition would set a “dangerous precedent,” calling the legislation “tailor made” to serve private rather than public interests and falling short of EU standards.
Questions remain about the financing and capacity for the work: reports say about US$1.5 billion (€1.3 billion) has been pledged, but Korajlic and others have asked where that money would come from and whether AAFS can deliver a project of that scale. Media reports have also suggested links between the company and individuals close to US President Donald Trump, along with lobbying efforts, raising concerns about political influence in the selection process. DW contacted AAFS for comment but received no reply before publication.
The episode underscores broader problems in Bosnia’s EU accession path, which has long been slowed by slow reforms and deep political divisions. Bosnia applied for EU membership in 2016, won candidate status in 2022 and opened formal accession talks in 2024, but progress has frequently stalled over governance and regulatory alignment.
Berta Lopez Domenech of the European Policy Centre in Brussels said that at times the EU has softened demands when Bosnia failed to pass required laws, but she welcomed the Commission’s renewed insistence that energy legislation meet EU guidelines — a sign Brussels may be reasserting conditionality.
The potential costs are tangible: Bosnia and other Western Balkan countries risk losing major EU support if reforms remain incomplete. Sarajevo could forfeit nearly €374 million from the EU’s Growth Plan for the region if implementation lags. Past freezes on funding have proved an effective lever for pushing reforms.
It remains unclear whether EU pressure will change the pipeline deal. Observers say a different approach would benefit Bosnia; the outcome will test whether the country prioritizes alignment with EU norms or advances arrangements that critics view as serving outside or private interests.