The U.S. Embassy to Bosnia and Herzegovina has issued a public statement emphasizing the significance of the Federation of BiH (FBiH) House of Peoples' vote on the Law on the Southern Interconnection, scheduled for Thursday. The legislation, already passed by the FBiH House of Representatives in December 2024, is seen as a critical step toward addressing Bosnia and Herzegovina's energy dependence on Russian gas and enhancing its energy security.

The Embassy underscored that the vote represents an opportunity to mitigate a pressing national security concern for both BiH and the United States. The Southern Interconnection project, which would diversify BiH's energy sources, aims to reduce the risks of Russian political and economic blackmail through energy monopolies—a tactic Russia has previously employed across Europe, including in BiH.

“This is a pivotal moment for BiH to move closer to the transatlantic community and lay the foundation for ending its reliance on Russian gas,” the statement said. “It is a simple choice: champion Euro-Atlantic integration or side with Russia.”

Foundation for economic growth and energy security

The Southern Interconnection project has been in development since 2017, with cooperation between the United States and BiH focusing on creating a legislative framework that meets international standards. The US highlighted that the project is inclusive, designed to benefit all FBiH residents, and aims to foster long-term economic growth by providing businesses with a secure and reliable energy supply.

Recent reforms at BH Gas, announced on January 13, were praised for aligning the company’s management structure with the FBiH’s constitutional framework. These reforms facilitate the Southern Interconnection project by enabling efficient operations and reducing costs. The statement noted that these changes position BH Gas to manage the pipeline effectively while avoiding the inefficiencies of creating additional companies.

Concerns over alternative proposals

The Embassy also expressed concerns about last-minute attempts to derail the legislation, particularly through a proposal involving a joint venture with Elektroprivreda Herceg Bosna (EP-HZHB). The US described the proposal as a distraction driven by narrow political and economic interests, highlighting several legal, regulatory, and technical flaws:

• Legal Issues: The EP-HZHB proposal conflicts with EU regulations that prohibit companies operating energy networks from controlling energy supply or generation.
• Technical Challenges: EP-HZHB lacks experience in the natural gas sector, focusing instead on renewable energy.
• Governance Complications: Involving multiple companies with differing regulatory frameworks would create unnecessary complexity.

“The purpose of this unworkable proposal is not to advance the Southern Interconnection project but to disrupt the critical vote in the Federation House of Peoples,” the statement asserted. “It serves the interests of a single individual at the expense of all FBiH residents.”

Call for political responsibility

The US Embassy called on FBiH delegates to seize the opportunity to enhance BiH’s energy security and accelerate its Euro-Atlantic integration. It reminded the public that the Southern Interconnection legislation previously enjoyed broad political support across parties until late 2021 when political dynamics shifted.

“The same legislation that was widely supported before should receive the same backing today because it is good for BiH and its citizens,” the embassy stated.

Final appeal

The US welcomed the Federation House of Representatives’ adoption of the law in December and praised the FBiH government’s commitment to the project. These steps, the embassy noted, established the necessary legal and operational environment for the project’s success.

The embassy urged the FBiH House of Peoples to adopt the legislation without delay, emphasizing its importance for increasing energy security, reducing reliance on Russia, and driving economic growth.

“Now is the time for BiH’s political leaders to take decisive action and ensure a stable and secure energy future for all its citizens,” the statement concluded.