Conor here: The media often gets swept up in geopolitical narratives, frequently overlooking issues like corruption, greed, nepotism, and environmental devastation. The U.S. energy and AI initiatives in the Balkans exemplify this trend.
Take, for instance, Bosnia and Herzegovina, which quickly amended its regulations to exclude the state-owned BH-Gas from a $1.5 billion pipeline project, subsequently awarding AAFS Infrastructure and Energy, a U.S. firm, a no-bid contract to construct and manage the Southern Gas Interconnection with Croatia.
At the helm of AAFS is Jesse Binnall, who previously worked on former U.S. President Donald Trump’s legal team. The company’s Vice President, Joseph Flynn, is the sibling of Michael Flynn, the former National Security Adviser. U.S. Energy Department envoy Joshua Volz was in Sarajevo, pressuring the government ahead of the vote.
Simultaneously, U.S. investors are planning to build three gas-fueled power plants to support data centers for American corporations, with an influx of U.S. LNG slated for the Balkans—a source known to have a higher carbon footprint than local coal.
The European Union is reportedly infuriated, not by these concerning issues, but because the U.S. is monopolizing the opportunities, depriving EU companies of the chance to bid on the pipeline project. Regardless, the situation is dire for the people in the Balkans and the environment.
By Rikard Jozwiak, Europe editor for RFE/RL in Prague, focusing on coverage of the European Union and NATO. Originally published at RFE/RL.
Since Donald Trump assumed the presidency, tensions have arisen between Washington and Brussels over trade, military expenditure, and support for Ukraine. A new arena for conflict has emerged: the Western Balkans.
Strategically located at the crossroads of U.S., EU, Russian, and Chinese interests, countries in the region are drawing attention from global superpowers eager to exploit their developing status, vulnerabilities, and fragile economies.
This dynamic is particularly evident in the recent energy deals involving U.S. investors in Albania, Croatia, and Bosnia-Herzegovina, as these nations strive to reduce their reliance on Russian energy supplies.
“President Trump is ushering in a new era of collaboration with Southern, Central, and Eastern Europe,” stated U.S. Energy Secretary Chris Wright at the Three Seas Initiative business forum in Dubrovnik, Croatia.
The competition for influence sharpened last week when the United States made its largest public investment in the Western Balkans in years, securing several multi-billion-dollar agreements for gas exports and AI development in Albania, Bosnia, and Croatia.
The flagship project is the $1.5 billion Southern Interconnection pipeline linking Bosnia and Croatia, connecting Bosnia to the Croatian liquefied natural gas terminal on Krk Island and the broader European gas network.
“There’s an acknowledgment that this region is once again pivotal, and the more you announce, the more you provoke pushback—from Moscow, Beijing, and even parts of Europe,” noted a Congressional aide familiar with the matter.
Another source added, “The strategy aims to expedite capital and project movement before political responses can catch up. Framing it as an investment rather than a geopolitical contest speeds up the process.”
Pipeline Aspirations
Bosnia, one of Europe’s least affluent countries, is in urgent need of progress.
Currently, it entirely relies on Russian fossil fuels transported through the TurkStream pipeline.
Notably, the Krk terminal serves as a significant conduit for American Liquefied Natural Gas (LNG) into Europe, and the deal, co-signed by the U.S., will facilitate even more American energy supply to the region.
Countries in the Balkans seem to be gravitating toward the United States after struggling to secure necessary financing from Europe for years.
“Chronic underinvestment has hindered the Balkans,” stated David J. Kostelancik, a Senior Fellow at the Center for European Policy Analysis (CEPA), emphasizing that energy security in Southeastern Europe is now a fundamental U.S. national security issue.
“By directing diplomatic efforts and facilitating funding, the U.S. can enhance investment in an energy sector that promotes competitiveness and ensures security, including mechanisms to detect infiltration by malign actors,” he added.
Both Brussels and Washington advocate for reducing the Balkans’ dependency on Russian energy, but energy policy is now entwined with the power struggle between the two capitals.
To facilitate the pipeline project, Bosnia revamped its legal framework to appoint AAFS Infrastructure and Energy—a private U.S. company—as the primary investor and developer.
As reported, Jesse Binnall heads AAFS Infrastructure and Energy, while Vice President Joseph Flynn is the brother of Michael Flynn, the former National Security Adviser.
This legislation effectively eliminated the competitive tender process, upsetting Brussels and prompting Transparency International to caution against setting a “dangerous precedent.”
In a letter dated April 13, EU Ambassador to Sarajevo, Luigi Soreca, cautioned that legislation enacted specifically for the pipeline project (lex specialis) could compromise Bosnia’s access to the European energy market, potentially endangering approximately €1 billion ($1.16 billion) in funding under the EU Growth Plan for the Western Balkans.
Bosnia remains part of Brussels’ Energy Community, which extends EU energy laws to aspiring members in the region. While Sarajevo has been an EU candidate since 2022, there are no signs of imminent membership, with Brussels frequently criticizing Bosnia for lacking internal reforms.
Officials in Bosnia assert that their agreement with U.S. investors aligns with the EU’s objective of ceasing Russian energy imports by January 1, 2028.
Accomplishing this will be challenging for Bosnia, which produces no gas of its own and relies entirely on Russia for 225 million cubic meters of gas annually.
With the prospect of EU membership appearing remote, Bosnia seems to disregard Europe’s admonitions to “carefully consider its obligations” when entering energy project contracts, opting instead to pursue American investment.
Bosnia has even joined an American initiative aimed at bolstering regional energy supply, with Foreign Minister Elmedin Konakovic asserting that it is “economically significant for the country.”
“This part of Europe is embracing rationality; the road to prosperity requires more energy, not less,” concluded Wright.
U.S. economic interests in the region have further been stimulated by the passage of the “Western Balkans Democracy and Prosperity Act” by Congress in February, which commits the U.S. to enhancing economic cooperation.
Recently, an American Investor Conference was held in Pristina, Kosovo, aimed at encouraging U.S. businesses to invest in various projects, including a new bus station, hospital, ring road construction, and multiple sports facilities.
The U.S. investment group Pantheon Atlas has signed a letter of intent with its local partner, Koncar Group, to build a $58 billion AI development and data center in central Croatia next year, with an expected electricity capacity of 1 billion gigawatts.
In Tirana, Albania has signed a 20-year framework agreement to import American LNG worth $6 billion, connecting local supplier Albgaz with the U.S. firm Venture Global and Greece’s Aktor.
Officials, speaking anonymously, indicated that further announcements are anticipated, although specifics were not divulged.
While the current focus is on Albania, Bosnia, and Croatia, there’s a prevailing sentiment that this new strategy is intended to be regional.
Serbia, North Macedonia, and Montenegro are seen as logical next targets for U.S. initiatives, especially as Washington seeks to create a more integrated energy and digital corridor across the Western Balkans.
