Bosnia and Herzegovina's Legislative Decision on State Property Critical for US Gas Interconnection Project
Bosnia and Herzegovina faces a pivotal decision regarding state property legislation, essential for the South Gas Interconnection project aimed at reducing dependency on Russian gas. Despite mechanisms for public interest exceptions, the relevant institutions have been blocked for years. US investor interest is rising, increasing pressure to resolve state property issues, particularly as the current law, imposed over 20 years ago, restricts property disposal. A recent proposal seeks to exempt property necessary for public infrastructure projects from these restrictions.
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Bosnia and Herzegovina must amend its state property legislation to advance the South Gas Interconnection project, crucial for energy independence from Russia. Currently, 100% of Bosnia's gas is sourced from Russia, and US company AAFS Infrastructure and Energy is interested in the project.
A proposal from the Federation's Prime Minister Nermin Nikšić seeks to exempt state property needed for public infrastructure from existing disposal restrictions. Legislative blockages, especially from the Republika Srpska, hinder progress.
The project could allow Bosnia to receive gas from LNG terminals, diversifying its sources. Construction could start by 2026, contingent on resolving state property definitions and legal frameworks.
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