US Embassy ahead of House of Peoples: This is an important moment for Bosnia and Herzegovina and for the United States

(Patria) - The US Embassy in Bosnia and Herzegovina sent a message via social networks ahead of the extraordinary session of the House of Peoples of the FBiH Parliament, which will consider the Draft Law on the Southern Interconnection.

"It is planned for the House of Peoples of the FBiH to vote today on the Southern Interconnection Law, which was adopted by the House of Representatives in December. This is an important moment for Bosnia and Herzegovina and for the United States. It is an opportunity to address a burning national security problem for both countries – BiH's dependence on Russian gas," the US Embassy announced.

They highlighted the Southern Interconnection as a clear step towards rejecting blackmail from Russia.

"We know that Russia uses its energy monopolies to blackmail countries politically and economically, and we have already witnessed the closure of gas supplies to BiH. The United States does not want any of its friends and partners in Europe, including Bosnia and Herzegovina, to be exposed to potential Russian blackmail. We have been strong advocates of this policy for many years. Delegates of the House of Peoples of the FBiH have the opportunity today to vote for a regulation that brings BiH closer to the transatlantic community of states and lays the foundation for ending the Russian energy threat to BiH," they stated.

It was also emphasized that "the choice is simple, or at least it should be: are you an advocate of Euro-Atlantic integration, or are you on Russia's side?"

"The US and BiH have closely cooperated since 2017 on the framework legislation needed to advance the Southern Interconnection project. We have worked with the previous and current Government of the Federation on this law to ensure it meets international standards, is inclusive, and serves the interests of all citizens of the Federation, and provides broad opportunities for long-term economic growth and development arising from ensuring access to a safe and reliable energy source for businesses.

The decisions on reforming the company made by BH-Gas and published on January 13 are also part of this process, and are a direct response to the proposals of several parties in the House of Representatives of the FBiH," said the US Embassy.

"Amendments to the BH-Gas Statute, including the update of BH-Gas management structures, respect the constitutional structure of the Federation, for example, by allowing the opening of branches and the creation of project implementation teams in the Federation outside of Sarajevo according to the geographical scope of the Southern Interconnection project.

They also support the efficient implementation of the Southern Interconnection gas pipeline project and other infrastructure investments. BH-Gas reforms establish the foundation for BH-Gas expansion without unnecessary additional costs and inefficiencies associated with creating additional companies. The reforms align BH-Gas's organizational structure with similar entities serving the population throughout the Federation, such as Željeznice FBiH and Autoceste FBiH. And the reforms and reorganization place BH-Gas in a position to effectively manage the Southern Interconnection Project with optimized resources," say the US Embassy.

They also commented on the political parties obstructing this law, namely the HDZ.

"Unfortunately, there is another attempt by those who, for their own narrow political and economic interests, want to sabotage the Southern Interconnection Law at the last minute at the expense of BiH's energy security. They claim that the Southern Interconnection project can be realized through a merger with Elektroprivreda Herceg Bosne, and not through BH-Gas. This is a familiar tactic, packaged differently, designed to distract the delegates of the House of Peoples of the FBiH from today's crucial and urgent vote," the message reads.

They further explained why this idea is unfeasible, or rather, not in line with BiH laws.

"There are several legal and regulatory issues with the proposal involving Elektroprivreda Herceg Bosne. First, EU rules (Directive 2009/73/EC) state that companies that are network operators for electricity or natural gas, like EP HZ HB, cannot simultaneously have a controlling stake in the supply or production of electricity or natural gas. Furthermore, it is in line with EU best practices for one transmission system operator to manage the gas pipeline in a country, especially in a country the size of BiH. Most transmission system operators in Europe manage much larger networks to reduce duplication and inefficiency. There are also technical issues with the proposal involving EP HZ HB. EP HZ HB has no prior or even relevant experience in the natural gas sector. On the contrary, it is completely focused on renewable energy. Finally, involving multiple companies from different regulatory environments in the Southern Interconnection project would create unnecessary complexity in the project's management and administration," they clearly stated.

They also say that the purpose of this idea "is not to enable the realization of the Southern Interconnection project."

"It is pure obstruction of what the House of Peoples of the FBiH should do today to lay the foundation for ending potential Russian political and economic blackmail of BiH. It is also designed to achieve the political and economic benefit of one person at the expense of the residents of the Federation – Croats, Bosniaks, Serbs, and Others – as well as to continue the division of the Federation. The hidden motives are obvious, and it is a political dead end. No one truly committed to the Euro-Atlantic future of BiH, to BiH's energy security, or to the economic development of the Federation of BiH would accept it, let alone vote for it. Therefore, we remind the public once again that this law, which the House of Peoples of the FBiH is voting on today, is the same law that had broad political support from all political parties until the end of 2021. Why? Because they recognized that it was good for the citizens and good for BiH. Today, it should enjoy the same kind of support," said the US Embassy.

In the end, they state that the US has always stood by the authorities in BiH regarding this project.

"They welcomed the commitment of the Government of the Federation to this project, including the approval of reforms in BH-Gas that will improve the company's operations, ensure representation and inclusion of all actors in the Federation, and enhance its own capacity to implement the Southern Interconnection project.

These were important steps towards establishing the legal and operational environment necessary for the project's success. The next step is for the House of Peoples of the FBiH to adopt the Southern Interconnection Law today. Now is the time for BiH's political leaders to seize this best opportunity to strengthen the country's energy security, eliminate dependence on Russian gas through diversification, and stimulate economic growth," the message from the US Embassy in BiH reads.