Full Breakdown
Bosnia and Croatia Sign $1.5 B Gas Pipeline Deal Amid EU Accession Concerns
4/29/2026, 2:21:37 AM
Bosnia-Croatia Southern Interconnection Pipeline Deal
On 28 April 2026, Bosnian Prime Minister Borjana Kristo and Croatian Prime Minister Andrej Plenkovic signed an agreement in Dubrovnik to build the Southern Interconnection pipeline. The project will link Bosnia’s gas system with Croatia’s network and the liquefied natural gas (LNG) terminal on the Adriatic island of Krk, creating a second gas entry point for Bosnia.
Energy Dependence and EU Accession Background
Bosnia imports virtually all of its natural gas from Russia—approximately 225 million cubic metres annually, with payments to Gazprom estimated at €75 million per year. The EU plans to end Russian gas imports by January 2028, and Bosnia’s EU candidacy, granted in 2022, requires alignment with EU energy-market rules. The pipeline is presented as a means to meet the upcoming EU ban on Russian energy purchases and to diversify Bosnia’s supply.
Key Actors and Stakeholders
- Borjana Kristo – Chair of Bosnia’s Council of Ministers, called the deal a “major step forward.”
- Andrej Plenkovic – Croatian Prime Minister.
- AAFS Infrastructure and Energy – U.S. investor/developer, directed by former Trump-campaign lawyer Jesse Binnall and vice-president Joseph Flynn, brother of former adviser Michael Flynn.
- Chris Wright – U.S. Secretary of Energy, present at the signing.
- Luigi Soreca – EU ambassador to Bosnia, author of the EU warning letter.
- Guillaume Mercier – European Commission spokesperson on accession compliance.
- John Ginkel – U.S. Ambassador to Bosnia, publicly supporting the project.
Project Scale and Financial Figures
The pipeline and associated gas-fired power plants are estimated at $1.5 billion (up to $1.5 billion according to local media). The EU warned that the project could jeopardise more than $1 billion in aid, specifically about €1 billion ($1.16 billion) from the EU Growth Plan for the Western Balkans. Bosnia’s state gas company BH-Gas was removed from the developer role, with the government arguing that the foreign investor can finance the project.
Official Statements and Diplomatic Responses
The EU’s letter emphasized that any energy-sector legislation must be submitted for review and comply with the Energy Community’s transparency, competition, and open-access requirements. EU officials warned that non-compliance could endanger Bosnia’s access to the European energy market and funding. The United States, through Secretary Wright and Ambassador Ginkel, expressed readiness to “act quickly” to back the Southern Interconnection and highlighted the project’s role in reducing regional reliance on Russian gas.
Criticism, Opposition, and Governance Concerns
Transparency International warned that designating a single U.S. firm sets a “dangerous precedent” and could “seriously undermine the public interest.” EU officials cited concerns about market structure, competition, and the exclusive control granted to AAFS. Energy analyst Sophie Corbeau noted that infrastructure alone does not guarantee diversification without reliable supply contracts.
Conflicting Reports and Information Gaps
Sources differ on the exact amount of EU aid at risk: one describes “more than $1 billion” while another cites “about €1 billion ($1.16 billion).” The pipeline’s cost is reported as both “$1.5 billion” and “up to $1.5 billion,” reflecting a range rather than a fixed figure. No public comment from AAFS or the Bosnian government on the EU’s latest assessment has been recorded.
Verbatim Quotes
- “Transparency International warned the move set a “dangerous precedent” and risked “seriously undermining the public interest,” by preventing other companies from bidding.” — Transparency International
- “Binnall said at a press conference with Bosnian Energy Minister Vedran Lakic on April 2 that the Southern Interconnection was "one of the priority projects for the Trump administration.” — Jesse Binnall, Director, AAFS Infrastructure and Energy
- “Countries seeking to reduce dependence on Russian gas must also secure reliable supply contracts,” — Sophie Corbeau, Center on Global Energy Policy, Paris
- “reduce energy dependency on Russia and to spur economic growth” — Allison Hooker, Under Secretary of State for Political Affairs
Outlook and Next Steps
The EU has requested that Bosnia submit the revised energy legislation for review before construction can begin, projected for spring 2026. Continued U.S. diplomatic support and EU compliance checks will shape the pipeline’s timeline and its impact on Bosnia’s EU accession trajectory.
