Bosnia and Herzegovina has signed a deal to construct a gas pipeline backed by investors connected to US President Donald Trump, purportedly aiming to reduce the country’s dependence on Russian gas.
The agreement, signed with neighboring Croatia on Tuesday at a summit in Dubrovnik, is claimed to relieve Sarajevo of its reliance on Russian gas ahead of an EU ban on energy purchases from Moscow set to take effect next year.
Bosnian Prime Minister Borjana Kristo, who signed the deal alongside Croatian Prime Minister Andrej Plenkovic, described it as a “major step forward” that strengthens energy security and diversifies supply.
However, the European Union, which Bosnia is seeking to join, warned that the Southern Interconnection Agreement could jeopardize the country’s accession bid and put at risk more than $1 billion in aid due to a lack of transparency around the project.
Bosnia is in the process of seeking EU membership, requiring it to meet obligations for member states, with energy being a particularly sensitive issue.
The Trump administration has been pushing European countries to dump Russian gas and buy US liquefied natural gas (LNG) instead.
By connecting Bosnia to Croatia’s LNG terminal on the island of Krk, the pipeline would integrate directly into the EU grid and allow US gas to reach a country currently entirely dependent on Russia.
Earlier this month, Bosnian lawmakers voted to name US-based AAFS Infrastructure and Energy as the investor and developer. The firm is headed by Jesse Binnall, a lawyer who worked for Trump and allegedly sought to overturn his 2020 election loss, and Joseph Flynn, brother of Trump’s former adviser Michael Flynn.
Transparency International warned the move set a “dangerous precedent” and risked “seriously undermining the public interest” by preventing other companies from bidding.
The EU’s ambassador to Bosnia, Luigi Soreca, warned in a letter that Bosnia must adhere to accession obligations when passing energy legislation and submit any amendments to the bloc for review.
The project is estimated to be worth around $1.5 billion and would also include construction of gas-fired power plants aimed at reducing coal-based electricity production.
Source: www.aljazeera.com