Concerns from Brussels are growing over Bosnia and Herzegovina’s approach to energy sector reforms, particularly in relation to the planned Southern Gas Interconnection project. The European Union has identified significant deficiencies that could impact both the project’s progress and the country’s broader EU integration process.
In a formal letter sent in mid-April, the head of the EU Delegation in Bosnia and Herzegovina, Luigi Soreca, called on national authorities to align domestic energy legislation with European regulatory standards. The warning highlights key structural problems, including a lack of regulatory independence, incomplete unbundling of energy activities, and limited third-party access to the gas market—all core requirements under the Energy Community framework and central elements of EU energy policy.
The EU also warned about potential consequences if reforms are delayed. Failure to adopt and implement the required legislation could slow down Bosnia and Herzegovina’s EU accession process and endanger access to important financial support mechanisms. Full implementation of the EU Third Energy Package has been identified as a key priority within the country’s reform agenda.
The timing of the EU communication coincides with recent legislative changes in the Federation of Bosnia and Herzegovina related to the interconnection project. Amendments have designated the US company AAFS Infrastructure and Energy as the main project developer, while reducing the role of BH Gas, a decision that has raised additional regulatory and political concerns.
Bosnia and Herzegovina’s gas sector framework remains incomplete, as the country still lacks a comprehensive state-level gas law and a fully established national energy regulator. This institutional gap continues to hinder compliance with EU requirements and complicates the implementation of large-scale infrastructure projects.
European officials have emphasized that coordinated policymaking and close consultation with the European Commission are essential for progress. Without stronger alignment, Bosnia and Herzegovina risks losing momentum in its EU accession path, as well as access to key EU funding opportunities tied to energy sector reforms.
