The Southern Interconnection Gas Pipeline in Bosnia and Herzegovina stands at the center of an energy project valued at around $1.7 billion according to the Croatian government that has sparked sharp debate among lawmakers, with reports that the White House’s diplomatic maneuvers in the Western Balkans are being scrutinized over allegations of political favors. U.S. lawmakers allege that the Trump administration lifted sanctions on Bosnian Serb separatist leader Milorad Dodik to empower allies of President Trump, specifically pointing to the involvement of AAFS Infrastructure & Energy LLC in the gas infrastructure project.
Sanctions Lifted and Pipeline Contracts Secured
The pipeline initiative, valued at approximately $1.7 billion according to the Croatian government, aims to link Bosnia and Herzegovina to Croatia’s gas network to reduce regional reliance on Russian energy imports. Discussions surrounding the pipeline had stalled for years due to opposition from Dodik, who has close ties with the Kremlin. However, after the Trump administration lifted sanctions against the separatist leader—sanctions originally imposed by the Obama administration in 2017 and expanded by the Biden administration in 2022—Dodik said he would not stand in the way of the proposal.
Four days after the U.S. Embassy in Sarajevo announced a preliminary agreement for an American firm to develop the pipeline, AAFS Infrastructure & Energy was incorporated in the state of Wyoming on Nov. 24, 2025. The firm is headed by Jesse Binnall and Joseph Flynn, the brother of Trump ally General Michael Flynn. Despite the company not appearing to have demonstrable experience in any similar energy projects, AAFS is close to securing a contract to develop the Southern Interconnection Gas Pipeline.
Congressional Allegations and Foreign Lobbying Filings
A congressional report published last month by House Democrats, titled “Pay for Play in the Balkans,” alleges a direct connection between the removal of sanctions on Dodik and his decision to not oppose the pipeline. Michael Flynn received $100,000 for tasks performed for RRB Strategies, a lobbying entity managed by former Illinois governor Rod Blagojevich—who was convicted of 18 corruption charges in 2011 and served nearly eight years in federal prison before receiving a pardon from President Trump last year—according to foreign agent registration records examined by CBS News. The FARA records note that Flynn delivered strategic counsel and advice, informational research and analysis, and connections to the Republika Srpska administration.
Democratic lawmakers have criticized these arrangements, arguing that the administration utilized its diplomatic leverage to enrich political associates. AAFS Infrastructure and Energy LLC did not respond to a CBS News request for comment.
Diplomatic Justifications and Regional Skepticism
The White House declined to comment on the pipeline project, but an administration official said the sanctions against Dodik were lifted to prevent instability in the Balkans. Most of the anti-Dayton regulations enacted over recent years were rescinded by the Republika Srpska National Assembly (RSNA) on October 18.
As Croatian and Bosnian officials signed an energy agreement in late April 2026 with U.S. Secretary of Energy Chris Wright in attendance, questions surrounding the pipeline’s leadership remain.
