Brussels presses Bosnia and Herzegovina on energy reforms tied to Southern Gas Interconnection

Brussels is increasing pressure on Bosnia and Herzegovina over its energy sector reform strategy, with particular focus on the planned Southern Gas Interconnection project. In a formal communication, EU officials warned that deficiencies in the country’s regulatory framework could slow project delivery while also complicating progress toward EU integration.

EU letter flags core regulatory shortcomings

In a letter sent in mid-April, Luigi Soreca, head of the EU Delegation in Bosnia and Herzegovina, urged national authorities to bring domestic energy legislation into line with European regulatory standards. The EU pointed to structural problems including a lack of regulatory independence, incomplete unbundling of energy activities, and limited third-party access to the gas market. Officials linked these issues to requirements under the Energy Community framework and key elements of broader EU energy policy.

Delay could affect accession and funding access

The EU also warned that postponing reforms could have consequences beyond the interconnection initiative. It said failure to adopt and implement the required legislation could slow Bosnia and Herzegovina’s EU accession process and jeopardize access to financial support mechanisms. Full implementation of the EU Third Energy Package was identified as a priority within the country’s reform agenda.

Legislative changes in the Federation add scrutiny

The timing of the EU message comes as the Federation of Bosnia and Herzegovina has recently made legislative changes related to the interconnection project. Amendments have designated AAFS Infrastructure and Energy, a US company, as the main project developer while reducing the role of BH Gas—an adjustment that has drawn additional regulatory and political concerns.

Incomplete state-level framework remains a barrier

European officials noted that Bosnia and Herzegovina’s gas sector framework is still incomplete. The country lacks a comprehensive state-level gas law and does not yet have a fully established national energy regulator. This institutional gap continues to hinder compliance with EU requirements and makes it more difficult to implement large-scale infrastructure projects such as the Southern Gas Interconnection.

Call for coordination with Brussels

The EU emphasized that coordinated policymaking and close consultation with the European Commission are essential for progress. Without stronger alignment, officials said Bosnia and Herzegovina risks losing momentum on its EU accession path as well as access to key EU funding opportunities tied to energy sector reforms.