Bosnia moves to ditch Russian gas, EU raises concerns
Photo: A Gazprom employee (Getty Images)
Bosnia and Herzegovina has signed a contract with a company linked to Donald Trump to build a gas pipeline. The EU warns that the deal’s lack of transparency could jeopardize the country’s accession to the bloc, Al Jazeera reports.
Bosnia and Herzegovina has signed a strategic agreement to build a new gas pipeline. This project is intended to permanently free the country from its dependence on Russian fuel. However, the agreement has already sparked a major political scandal. Brussels warns that such a move could close the door to the European Union for Bosnia.
Why is this important for energy security
The contract was signed at a summit in Dubrovnik, with Bosnian Prime Minister Borjana Kristo and Croatian Prime Minister Andrej Plenkovic as the signatories. The main goal is to complete the project by next year, as that is when the EU’s full ban on purchasing energy resources from Russia will take effect.
Currently, Sarajevo is completely dependent on supplies from Moscow, which makes the country vulnerable. The new pipeline will connect Bosnia to the Croatian liquefied natural gas (LNG) terminal on the island of Krk. This will open the way for American gas.
Borjana Kristo called this development a "major step forward" and is confident that diversification will strengthen the country. However, the price of such independence may prove too high.
The construction cost is estimated at $1.5 billion. It’s not just a pipeline. The plan includes the construction of new gas-fired power plants. This will allow the country to begin phasing out so-called dirty coal.
Trump’s footprint: who is behind the project
The main intrigue surrounds the developer. Bosnian lawmakers have designated the American firm AAFS Infrastructure and Energy as the investor, whose leadership consists of Donald Trump’s inner circle.
Who is leading the project:
• Jesse Binnall, a lawyer for Trump who attempted to overturn the results of the 2020 election
• Joseph Flynn, the brother of Michael Flynn, Trump’s former national security adviser.
Donald Trump himself has long been calling on Europe to abandon Russian gas in favor of American LNG. Now his allies are moving from words to action. Transparency International believes that appointing an investor without a transparent tender undermines the public interest.
EU issues ultimatum: a billion dollars is at stake
EU Ambassador to Bosnia Luigi Soreca has already sent an official warning: the agreement on the Southern Interconnection Agreement violates the bloc’s transparency rules.
What Bosnia risks:
• Halt to the EU accession process
• Loss of over $1 billion in aid
• Sanctions for violating energy legislation.
EU officials are demanding that all legislative changes in the energy sector be coordinated with Brussels. Any backroom deal is seen as a threat to European principles.
Situation on global oil and gas market
US Treasury Secretary Scott Bessent assured that the US does not plan to extend oil sanctions relief for Russia. Previously, the US made a concession and allowed Russia to trade oil until May 16.
According to Bloomberg, the Russian economy is in critical condition. Despite occasional spikes in energy prices, windfall profits from oil are no longer enough to save Russia from recession due to deep-seated structural problems and the consequences of international isolation.
Meanwhile, the UAE has announced its withdrawal from OPEC and OPEC+. Experts see this as a victory for Trump, as he has long criticized OPEC, accusing the organization of artificially inflating oil prices.
