Full Breakdown
Southern Interconnection Pipeline Deal Signed
4/29/2026, 6:39:50 AM
Energy Dependence and EU Policy
Bosnia currently receives almost all its natural gas from Russia via Serbia and Bulgaria’s TurkStream pipeline. The EU requires candidate states to cut Russian energy ties, with a bloc-wide ban slated for 2027. The EU’s ban on Russian gas purchases, scheduled for 2027, prompts candidate countries to diversify now.
Key Actors and Companies
The project is financed and built by U.S. firm AAFS Infrastructure and Energy LLC, led by former Trump lawyer Jesse Binnall and Joseph Flynn, brother of Michael Flynn. AAFS, founded in late 2025, has no prior pipeline-construction record, raising technical concerns. Officials present included Energy Secretary Chris Wright, ambassador Kimberly Guilfoyle and Under-Secretary Allison Hooker. EU ambassador Luigi Soreca and Transparency International’s Ivana Korajlic noted concerns.
Legislative and Signing Timeline
- March 2026: Bosnian parliament named AAFS as the project’s investor.
- 28 April 2026: The agreement was signed in Dubrovnik.
Project Scope and Investment
The pipeline and associated gas-fired power plants are valued at roughly $1.5 billion (?€1.5 billion, $1.8 billion), with AAFS pledging about €1.5 billion in investment.
Official Statements
Bosnian Prime Minister Borjana Kristo called the deal a “major step forward”. Croatian Premier Andrej Plenkovic welcomed the partnership. Chris Wright said the United States is “opening a new era of cooperation”. Luigi Soreca warned compliance with EU procurement rules is essential and his letter said any amendment to energy legislation must be submitted to the EU for review.
Criticism and Opposition
Ivana Korajlic of Transparency International warned that bypassing transparent procurement “would set a very dangerous precedent”. EU officials noted the project could jeopardize Bosnia’s EU accession and risk over $1 billion in aid. AAFS lacks pipeline experience, and the absence of competitive bidding also contravenes EU public-procurement standards.
Conflicting Reports and Gaps
Sources list the project cost as $1.5 billion, €1.5 billion or $1.8 billion. The financing source for AAFS’s €1.5 billion investment remains undisclosed.
Verbatim Quotes
- “President Trump is opening a new era of cooperation with southern, and central and eastern Europe,” — Chris Wright, U.S. Energy Secretary
- “This commitment strengthens energy security - and national security - across the entire region,” — Kimberly Guilfoyle, U.S. ambassador to Greece
- “reduce energy dependency on Russia and to spur economic growth” — Allison Hooker, Under Secretary of State for Political Affairs
- “avoiding any kind of transparent procedures, avoiding any kind of competition” — Ivana Korajlic, Transparency International Bosnia-Herzegovina
Implications for EU Accession
The EU warned that non-compliance could freeze up to €374 million from the Western Balkans Growth Plan. Bosnia must align the pipeline with EU procurement standards to protect aid and its accession prospects.
