DUBROVNIK — Bosnia and Herzegovina and Croatia signed an agreement on April 28, 2026, to construct a gas pipeline connecting Bosnia to Croatia's liquefied natural gas terminal on the island of Krk. Bosnian Prime Minister Borjana Kristo and Croatian Prime Minister Andrej Plenkovic signed the deal, which is backed by investors connected to United States President Donald Trump.

The pipeline aims to reduce Bosnia and Herzegovina's dependence on Russian gas. The country currently depends on Russia for its entire gas supply. An EU ban on energy purchases from Moscow is set to take effect in 2027.

"The agreement strengthens energy security and diversifies supply," Kristo said. The project, estimated to be worth around $1.5 billion, would also include construction of gas-fired power plants to reduce coal-based electricity production.

Bosnian lawmakers voted to name US-based AAFS Infrastructure and Energy as the project's investor and developer. Jesse Binnall, co-head of the firm, is a lawyer who previously worked for Trump and unsuccessfully sought to overturn Trump's 2020 presidential election loss. Joseph Flynn, the other co-head, is the brother of Michael Flynn. Trump has lobbied European countries to replace Russian gas with US liquefied natural gas.

The EU warned that the Southern Interconnection Agreement could jeopardize Bosnia and Herzegovina's accession bid and put at risk more than $1 billion in aid due to lack of transparency. Bosnia and Herzegovina is seeking EU membership and must meet member state obligations on energy policy.

Luigi Soreca, the EU's ambassador to Bosnia and Herzegovina, warned that the country must adhere to accession obligations when passing energy sector legislation. He said any amendments to energy sector legislation must be submitted to the EU for review. Transparency International warned that selecting AAFS Infrastructure and Energy without a bidding process could undermine the public interest by preventing other companies from bidding.