The Guardian on the Southern Gas Interconnection: Why is a billion dollars going to an unknown company linked to Donald Trump?

Journalist Tom Burgis of the British newspaper The Guardian has written a lengthy analysis of the connection between the administration of US President Donald Trump and the company AAFS Infrastructure and Energy, which is supposed to build the Southern Gas Interconnection in Bosnia and Herzegovina, describing it as obscure and lacking experience in the business it is supposed to undertake in our country.

The Guardian conducted an investigation based on interviews with current and former Bosnian and US officials, leaked documents and corporate records. They claim this case blurs the lines between government policy and the enrichment of the ruling family and those around it.

“The company AAFS Infrastructure and Energy is close to obtaining a concession to build and operate a gas pipeline across the Balkans that will allow fossil gas supplied from the US to replace supplies coming from Russia.

‘This could be the most important infrastructure project ever in Bosnia and Herzegovina,’ says one senior official of the country, who, like others, requested anonymity to discuss sensitive negotiations,” Burgis writes.

They state there is no evidence the company has ever implemented a project of this scale before.

“What it does have are personal connections to Donald Trump.”

They note that one of the representatives of AAFS is lawyer Jesse Binnall from Washington, who represented Trump in political cases, and another is the brother of the president's national security advisor.

“Both were part of a campaign close to Trump's heart: the effort to overturn his defeat in the 2020 presidential election,” Burgis writes.

They state that Jesse Binnall is a leading lawyer representing the MAGA movement.

“He was an assistant in the 2016 campaign that brought Trump to the White House. In 2020, he was a leading voice undermining Joe Biden's victory. He also stated that ‘Donald Trump won… after you explain the fraud and irregularities that occurred.’ He defended Trump and his eldest son, Donald Trump Jr., against a lawsuit alleging they were responsible for the storming of the Capitol building by demonstrators intent on overturning the election results,” Burgis notes.

Since Trump's return to power last year, Binnall secured a $1.25 million settlement from the Department of Justice for Michael Flynn, who briefly served as national security advisor in Trump's first term. Despite pleading guilty to lying to the FBI about secret contacts with Russia, Flynn claimed he was the target of a criminal prosecution based on lies.

Binnall also introduced Flynn's brother Joe, a healthcare businessman.

“They were colleagues in the campaign effort to discredit Biden's victory. Flynn was chairman of one of the movement's best-funded instruments, Project America. He was also an advisor to Trump's 2020 and 2024 presidential campaigns,” the Guardian reports.

The British newspaper emphasizes that Flynn and Binnall lack qualifications for such a project in Bosnia and Herzegovina.

It notes that the US has long supported the plan to connect Bosnia and Herzegovina with a gas terminal on the Croatian coast, which would reduce Russia's influence in the Western Balkans region.

“During Biden's term, the idea was for the Bosnian state gas company to lead the project. But conflicting interests among ethnic factions in Bosnia caused delay after delay. While some Bosnian officials were cautious about handing the project to foreign private interests, others saw the engagement of a company linked to Trump as an opportunity to break the deadlock,” the newspaper states.

Some analysts fear that Bosnia and Herzegovina risks replacing one bully with another.

“It seems no one wants to risk angering Trump, even if it means entrusting their hopes for a new vital energy artery to a company with no proven ability to deliver it.”

One source, a former US official in the region, told Burgis that in today's world there is logic in people connected to the administration getting involved in major economic projects or investments.

“It's uncomfortable, but a lot of my country's politics these days is uncomfortable,” he added.

The US official believes that US intervention in the project could undermine the Dayton Peace Agreement.

The Guardian journalist also spoke with the director of AAFS's Sarajevo branch, Amer Bekan, who registered the company in 2021. Bekan's AAFS is now owned by a US company of the same name, registered in November.

“Bekan's online CV describes him as an ‘investor and entrepreneur with rich experience.’ He also tried his hand at politics. After finishing last with 116 votes in the 2016 mayoral election in central Sarajevo, a second campaign in 2020 led to him being charged with abuse of elections for personal gain, which he denied.”

When asked who the shareholders of AAFS are, Bekan replied that they are Binnall and Flynn, plus others he did not wish to name.

“He notes that financing could come from ‘investment funds in the United States,’ but says he cannot provide more information,” Burgis writes.

Meanwhile, Binnall told the Guardian that AAFS is the right company for this project and that no other combines a presence in Bosnia and Herzegovina with strong support in the US.

“And we are excited to take that step because we believe that Bosnia and Herzegovina is the future,” Binnall said.

“In AAFS's confidential proposal, seen by the Guardian, it states that the pipeline will cost 300 million euros, and an additional 900 million euros for three power plants, with financing not coming from the Bosnian state, but through equity and debt. It does not specify what return Flynn, Binnall and others involved expect for themselves,” the Guardian reports.

The newspaper further states that a few days after the adoption of the law in the Parliament of the Federation of Bosnia and Herzegovina on the Southern Gas Interconnection, in which AAFS was listed as the investor, the EU ambassador sent a private warning to Bosnian leaders that they should consult with Brussels on any changes in energy policy to “avoid missing opportunities for further integration, as well as financial opportunities.”

The Guardian then analyzes the change in Washington's policy towards the leader of SNSD and former President of Republika Srpska, Milorad Dodik.

“When Trump again assumed the presidency, Dodik launched a multi-million dollar lobbying campaign to win support from the Trump administration and lift sanctions. Lobbyists called Dodik's Serbian nationalists Trump's allies against Islam. One of them was Michael Flynn, who earned $100,000 for a month's work.”

They add that the son of the SNSD leader, Igor Dodik, received Donald Trump Jr. in a visit in April.

“Dodik's son, Igor, warmly welcomed Trump Jr. ‘Your presence says a lot,’ he said. ‘We rely on you. In return, you, America and the Republican administration led by your father will have a reliable, truthful and Christian ally in this part of the world.’”