BiH at a Crossroads: Southern Interconnection – still many legal Obstacles

From the Bosnian perspective, the issue of the southern interconnection seems neither Russian, nor Croatian, nor Bosnian, but, increasingly certain, will be the American hand on the gas pipeline valve. This is the epilogue of a multi-year political blockade of this, for the state of Bosnia and Herzegovina, a strategic energy project, which frees our country from dependence on Russian gas, and which the European Union is resolving by 2027. Ambitiously, the policy announces the start of work for next year, although, for starters, the Federal Parliament has not amended the Law on the Southern Interconnection, in which BH-Gas is listed as the investor, not the American concessionaire.

“BiH is at a crossroads,” said John Ginkel, Chargé d’Affaires at the US Embassy in BiH.

Completely dependent on Russian gas, BiH has long been at a crossroads and a training ground for the energy clash of Russian-American interests. Ultimately, the global has overpowered the cross-border and local and, according to the claims of the US administration itself, the corrupt personal-party interest. So, there is no constitutive gas, the US administration, which will be both the project leader and investor, has broken through.

“The European Union is imposing a ban on Russian gas, which means that the flow of Russian gas to BiH will be stopped by 2028. After several years of talk about the Southern Interconnection, it is important that BiH acts immediately to ensure its own energy stability or risk falling behind,” Ginkel added.

The entire American apparatus, from the one in Sarajevo to the one in Washington, is dedicated to reaching a consensus for this to happen as soon as possible. Hence the pressure from the US to get rid of the Russian gas monopoly in BiH as soon as possible, all as an epilogue to the long-standing ‘don’t block – I will’ saga between the US and Čović, who wanted his own company and the energy division of the country according to the principle of ‘Bosnia whole from three parts’, by territorially rounding off the BiH gas network.

“I think it is important that we have many more interconnections, it is better to have ten interconnections than one or two. RS has never blocked the Southern Interconnection, but it has emphasized the importance of working on both the Eastern and Southern Interconnections. The problem with the Southern Interconnection was mutual relations in the federation, but don’t think that we will give up on the Eastern New Interconnection,” said Staša Košarac, Minister of Foreign Trade and Economic Relations of BiH.

Foreign Minister Elmedin Konaković said he was optimistic: “They are committed to it, they are working on it. The dynamics are fantastic. I am very optimistic that in 2026 we can bury the first meters of the Southern Interconnection with American investments and an American concession.”

In vain did national gas interests fill the gas pipelines with politics, and the battle was waged over the adopted Law on the Southern Interconnection, in which BH-Gas nevertheless remained the project leader, which is a change that must occur in the Law in order to introduce an American concessionaire into the business who would not have the privilege of being exempted from paying compensation for the land through which the gas pipeline will pass.

“With the talk about the concession, we have ended all the talk about some new companies,” added Konaković.

In order for the Southern Interconnection to be connected to the gas pipeline in Croatia, American liquefied gas arrived in BiH via the LNG terminal on the island of Krk, and work began the following year with changes to the federal law that, by the way, Russia threatened BiH, and the urgent signing of an interstate agreement between BiH and Croatia is also necessary.

“Some crooks who sell gas so we can get rid of the Russians. I welcome you. But you won’t force the Americans on us. And they won’t go through Croatian territory without asking us. And as long as you oppress the Croats in Bosnia and Herzegovina, you will get the middle finger,” said Zoran Milanović, President of the Republic of Croatia.

Although this was once a message from the neighbors, everything will not be a problem, assures the chairwoman of the Council of Ministers. State property is also an obstacle to the start of work. The High Representative’s latest statement on easing the ban on development projects hinted that this could happen.

“Next time we will sit down and see that state property is not an issue that worries us, but an opportunity for investments,” said Christian Schmidt, High Representative in Bosnia and Herzegovina.

On January 1, 2028, the flow of Russian gas to Bosnia and Herzegovina will stop, which by then would have to build a 170-kilometer long gas pipeline, from Posušje, through Mostar to Novi Travnik. It will be a new energy map that our country will only be able to complete with the help of American money and working methods, provided that it does not become administrative collateral damage of the BiH bureaucracy in which construction and environmental permits are tools for incorporation and blackmail, Federalna writes.

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