How a gas pipeline could hinder Bosnia's EU accession

2026-04-29 08:20:00, Kosova & Bota CNA

The Southern Interconnection pipeline, designed to connect Bosnia and Herzegovina to a liquefied natural gas terminal in neighboring Croatia, could hinder Bosnia's aspirations to join the European Union.

This project is of strategic importance for the country, as it would reduce Bosnia's dependence on Russian gas. Following Russia's large-scale invasion of Ukraine, the EU has been pressuring both member states and candidate countries to cut their ties with Russian energy.

For Bosnia, which imports virtually all of its gas from Russia, this pipeline could represent a key step towards diversification and a connection to the European gas market via Croatia.

Why Brussels is worried about Bosnia's gas pipeline plans

In March, Bosnian lawmakers passed a law that effectively designated a specific US-based company, AAFS Infrastructure and Energy, as the project’s investor. The company was founded in late 2025 and reportedly has no known experience in pipeline construction.

This has raised concerns in Brussels. Before the final approval of the agreement, the EU ambassador to Bosnia and Herzegovina, Luigi Soreca, wrote to Bosnian leaders urging them to comply with EU rules.

He stressed that authorities must 'carefully consider the obligations' stemming from the Energy Community Treaty when drafting energy legislation. To maintain progress towards EU membership, he added, it was 'essential' that laws comply with the European Commission's recommendations.

For the EU, the issue is not the pipeline itself, but the way it is being delivered. Brussels supports reducing dependence on Russian energy, but insists that such projects follow transparent procedures and public procurement rules.

A newly formed American company raises suspicions

The planned deal has also drawn attention in Bosnia. Ivana Korajlic, from Transparency International in Bosnia and Herzegovina, warned that "bypassing any kind of transparent procedure, bypassing any kind of competition" would set a "very dangerous" precedent.

According to her, AAFS Infrastructure and Energy was chosen to serve someone's financial interests. Such "custom-made laws," Korajlic said, serve private interests more than the public good and are not in line with EU rules.

Korajlic also raises doubts about the American company, noting that it remains unclear where the reported $1.5 billion (1.3 billion euros) investment would come from, and whether the company is capable of carrying out a project of this scale.

She noted that the company's ties to individuals close to US President Donald Trump, along with alleged lobbying efforts, suggest that political influence may have played a role in her selection. DW reached out to the company for comment but did not receive a response before publication.

Bosnia's bumpy road to EU membership

The controversy highlights the broader challenges of Bosnia's EU accession process, which has long been characterized by slow reforms and political divisions. The country officially applied for EU membership in 2016 and was granted candidate status in 2022.

Analyst Berta López Domenech, from the Brussels-based think tank European Policy Centre, told DW that formal negotiations for Bosnia's EU membership began in 2024. However, the process has been blocked again due to governance problems and the inability to meet EU standards.

Domenech adds that Bosnia's failure to adopt the necessary laws has led the EU in recent years to back down on its demands and lower standards. For him, it is "good news" that the EU is now standing firm on its criticism and insisting that energy security legislation comply with EU guidelines.

EU funding at risk

But the issue is not simply political. Bosnia and other Western Balkan countries risk losing significant EU funding if they fail to implement agreed reforms. Bosnia could lose nearly 374 million euros under the EU Growth Plan for the region if implementation continues to be delayed.

This could give Brussels a significant advantage. Freezing funds has previously proven effective in pushing Bosnia towards necessary reforms, Domenech explained to DW.

Both Domenech and Korajlic stressed that it remains unclear whether EU intervention will be enough to change the course of the project. But they agreed that a change would be in Bosnia and Herzegovina's best interest.

For Korajlic, the result will show whether the country's priority is "compliance with EU standards or satisfying the interests of others." /DW