The company that imports natural gas to Bosnia’s Federation (FBiH) entity said on Wednesday that it will cut gas supply on Friday because Bosnia’s state gas company did not pay the March gas bill thus disabling Energoinvest from paying the supplier, Russia’s Gazprom.

The suspension of gas supply is “an inevitability caused by the non-payment of Energoinvest's invoice for imported and delivered gas for the month of March 2021 by BH Gas d.o.o. Sarajevo,” the company said.

“Although consumers in the Federation of BiH duly paid for this gas and settled their obligations for the month of March 2021 through local distributors or directly to BH Gas, BH Gas refuses to pay the bills to Energoinvest,” it said, adding that this prevents the company for paying the Russian gas supplier Gazprom Export and all customs and tax obligations.

The issue has been ongoing for months, the company said, explaining that the Russian supplier sent a note warning that no gas will be delivered until the debt is paid.

“As the payment did not take place despite multiple warnings sent to BH Gas, as well as the filing of a lawsuit by Energoinvest before the competent court, further gas deliveries will be suspended on May 7, 2021,” it said.

BH Gas is trying to “maintain the position of absolute control and power,” the company said, arguing that its behaviour is intentional and that it has caused financial and reputational damage to Energoinvest.