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US Energy Secretary Chris Wright said in Dubrovnik on April 29 that he would be shocked if the European Union did not support the gas project, the Southern Interconnection, which would connect Bosnia and Herzegovina to the liquefied gas terminal on the Croatian island of Krk and free it from dependence on Russian gas.
Wright said he is proud of the decisions of the governments of Bosnia and Herzegovina and Croatia to be part of the project, adding that he hopes it will be realized as soon as possible.
Bosnia and Herzegovina and Croatia on Tuesday in Dubrovnik – where the Three Seas Initiative forum gathering countries between the Baltic, Adriatic and Black Seas is being held – signed an agreement for the construction of the Southern Interconnection gas pipeline, which should provide Bosnia and Herzegovina with access to new sources of liquefied natural gas (LNG) supply through the terminal in Krk, with the aim of ending Sarajevo's dependence on Russian gas.
The European Union, however, has previously warned that the legal framework, which establishes a private American company as the lead investor, could affect Bosnia and Herzegovina's European path, as well as access to around 1 billion euros dedicated to infrastructure projects under the EU's Growth Plan for the Western Balkans.
Although it was initially planned that the project in Bosnia and Herzegovina would be led by the public company BH-Gas, which is owned by the Government of the entity of the Federation of Bosnia and Herzegovina, its implementation has been included, through a special law, by the American company AAFS Infrastructure and Energy, founded at the end of last year.
According to public records, the director of AAFS Infrastructure and Energy is Jesse Binnall, a former member of US President Donald Trump's legal team, while the vice president is Joseph Flynn, the brother of former US national security adviser Michael Flynn.
Wright declined to comment on the private American company AAFS, which will build the pipeline in Bosnia and Herzegovina and is linked to Trump associates.
He added that he would be "shocked" if the European Union, which previously had reservations about the way the Southern Interconnection pipeline project was being implemented, ultimately "did not support" the project.
According to the legislation of the European Energy Community, it is not a problem for a pipeline operator to be a private company, but the model according to which, through a special law, the AAFS company is separated from the general legal framework and defined as an investor, operator and manager of strategic infrastructure, without a prior public tendering process, may be problematic.
According to the EU acquis communautaire laws, independent regulators, certified operators, access to the transport network for all interested parties, and competition in the market are required.
Bosnia and Herzegovina has been a signatory to the acquis communautaire Treaty since 2006 and is a candidate for membership in the European bloc, and through the signing of several agreements has committed to implementing European energy legislation.
The Energy Community Secretariat may launch an infringement procedure, which could result in a formal decision of non-compliance and a request for legislative amendments. This could slow down or postpone the project as January 2028 approaches, when EU countries are expected to stop importing Russian gas./REL
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