The Southern Interconnection pipeline, intended to link Bosnia-Herzegovina to a liquefied natural gas terminal in neighboring Croatia, could jeopardize Bosnia’s hopes of joining the European Union.
Strategically, the project would help Bosnia diversify away from near-total reliance on Russian gas by connecting it to the European gas market via Croatia. After Russia’s full-scale invasion of Ukraine, the EU has urged member and candidate states to reduce ties with Russian energy, making such diversification politically important.
The controversy centers not on the pipeline itself but on how the project is being awarded. In March, Bosnian lawmakers passed legislation that effectively designated a specific US-based company, AAFS Infrastructure and Energy, as the project investor. The firm — reportedly founded in late 2025 — is said to have no known experience building pipelines. That prompted alarm in Brussels.
EU Ambassador to Bosnia-Herzegovina Luigi Soreca warned Bosnia’s leadership to respect obligations under the Energy Community Treaty and to align national energy laws with European Commission recommendations. The EU supports reducing dependence on Russian supplies but insists infrastructure projects follow transparent procedures and public procurement rules.
Within Bosnia, transparency advocates also raised concerns. Ivana Korajlic of Transparency International in Bosnia-Herzegovina said bypassing open procedures and competition would set a dangerous precedent. She described the legislation as “tailor made,” serving private rather than public interests and falling short of EU standards.
Korajlic questioned where the reportedly pledged investment of around US$1.5 billion (€1.3 billion) would come from and whether AAFS can execute a project of that scale. She also flagged reported links between the company and individuals close to US President Donald Trump, along with lobbying efforts, suggesting political influence may have played a role in the selection. DW contacted the company for comment but received no response before publication.
The dispute highlights wider problems in Bosnia’s EU accession path, long hindered by slow reforms and political divisions. Bosnia applied for EU membership in 2016 and was granted candidate status in 2022. Formal membership talks began in 2024, but progress has repeatedly stalled over governance and alignment with EU standards.
Berta Lopez Domenech of the European Policy Centre in Brussels noted that Bosnia’s repeated failure to adopt required legislation has at times led the EU to lower its demands. She welcomed the EU’s recent insistence that energy legislation comply with its guidelines, seeing it as a sign Brussels is reasserting standards.
The stakes include EU funding. Bosnia and other Western Balkan countries risk losing significant support if they fail to implement agreed reforms. Bosnia could forfeit nearly €374 million from the EU’s Growth Plan for the region if implementation continues to lag. Freezing funds has previously proven an effective lever to encourage reforms.
Whether EU pressure will alter the course of the pipeline deal remains uncertain. Both Domenech and Korajlic agreed that a change in approach would be in Bosnia’s interest. For Korajlic, the outcome will reveal whether Bosnia prioritizes alignment with EU norms or the fulfillment of outside interests. Edited by: Cai Nebe