Thewesternbalkans.
Russia’s annexation of Crimea in 2014 forced Europe to confront its dependence on Russian-controlled pipelines and the leverage that afforded Moscow, prompting a push to diversify energy sources and routes. The 2022 full-scale invasion brought those concerns to a head, further spurring efforts to reshape trade routes and energy partnerships across the continent. Reducing reliance on Russian energy has since become an explicit priority for both Washington and Brussels.
The Western Balkans sit squarely within this landscape given the region’s unique position at the intersection of EU and U.S. interests and Russian and Chinese influence, and recent U.S. legislation reflects this reality, analysts say.
There are at least 3 major factors for the energy development and perspectives in the Western Balkans.
1.The European Union
The six countries that make in the Western Balkans differ in terms of size, population, economy, energy mix and energy import dependency. At the same time, they share common elements because of their geographical proximity, and – in some cases – common policies adopted in the past. A common element (except for Albania) is their reliance on solid fossil fuels (mainly coal), and their dependency on imports of fossil fuels. The EU is the leading trade partner for the countries of the Western Balkans and an important investor in the region. In addition, it is the largest provider of financial assistance to the region, supporting the six countries’ development and reforms, as well as its transition towards sustainable energy, with financial and technical assistance. The EU provides assistance through the Instrument for Pre-accession Assistance, the Western Balkans Investment Framework (WBIF) and the European Investment Bank.
The European Commission put forward an energy support package for the Western Balkans, given that the region is vulnerable in terms of both the impact of the energy crisis and the Russian invasion of Ukraine. The €1 billion package consisted of budget support for the countries in order to mitigate the immediate effects of the energy crisis in the region (€500 million), and in grants through the WBIF (€500 million), to accelerate the energy transition in the short and medium terms. In 2023, as part of the immediate measures from the package, Albania received €80 million; Bosnia and Herzegovina – €70 million; Kosovo – €75 million; Montenegro – €30 million; North Macedonia – €80 million; and Serbia – €165 million. Funds from the programme went to support vulnerable families and SMEs facing the rising energy prices. Furthermore, the EU has a separate institutional structure for its relations with the Western Balkan countries: the Energy Community, established in 2006, is composed of the EU Member States, the six countries of the Western Balkans, as well as Moldova, Türkiye and Ukraine. On joining the Energy Community, the contracting parties committed to the adoption of a set of legislation and to approximation with the acquis communautaire, with the ultimate goal of establishing an integrated market anchored to the EU, and achieving certain standards of liberalisation, investment and regulatory maturity.
2. United States of America
In late 2025, Congress passed the Western Balkans Prosperity Act as part of the 2026 National Defence Authorization Act. This legislation positions energy cooperation as a key pillar of U.S. policy toward the region, with a stated objective of expanding regional economic integration and reducing dependence on Russia.
Doing so signals that Washington views energy security in the Western Balkans as a matter of U.S. national security as well, wrote David J. Kostelancik for the Centre for European Policy Analysis.
The United States is seeking to reshape the energy map of the Western Balkans through a network of bilateral agreements and infrastructure projects centred on liquefied natural gas (LNG). The broader objective is to reduce the region’s dependence on Russian gas while strengthening a strategic energy corridor linking Southern and Central Europe.
A series of projects is being advanced across Croatia, Bosnia and Herzegovina, North Macedonia, Albania, Montenegro, Kosovo and Serbia. These initiatives include new gas pipelines, LNG terminals and gas-fired power plants, supported politically and financially by both Washington and Brussels. Some projects are already under construction or in the contracting stage, while others remain in planning. Together, they signal a gradual shift in the region’s energy mix toward gas supplies from the United States, Azerbaijan and the Mediterranean basin.
Southeast Europe has already developed alternative gas supply routes. These include LNG terminals in Greece and Croatia, the Southern Gas Corridor from Azerbaijan, and Romania’s Neptun Deep offshore field in the Black Sea, whose exploitation is expected to begin next year and whose reserves are estimated at around 100 billion cubic meters.
Bosnia and Herzegovina has recently become a focal point of regional gas diversification efforts through the Southern Gas Interconnection project with Croatia. The pipeline would give the Federation of Bosnia and Herzegovina access to the LNG terminal on the Croatian island of Krk and to alternative gas suppliers. At the same time, Republika Srpska continues to pursue separate gas links with Serbia, including the Eastern Interconnection project from Bijeljina to Banja Luka.
The new pipeline would also connect with the existing gas route arriving from Serbia. It is an investment estimated at around EUR 1 billion.
Serbia is expanding its gas infrastructure as it seeks to preserve its position as a regional energy hub while creating room for US LNG and broader Western investment in the sector.
In February this year, Serbian Minister of Mining and Energy Dubravka Đedović Handanović signed a joint statement with the United States and several Central and Eastern European countries during the Transatlantic Gas Security Summit in Washington. The statement focused on strengthening the resilience of regional gas markets and improving supply security.
Following the summit, Srbijagas Director Dušan Bajatović stated that Serbia would eventually need to purchase American gas, although no quantities or formal supply contracts have yet been defined. Serbia’s 2024 strategic energy cooperation agreement with the United States envisages diversification of energy sources, but it does not currently include a binding agreement to buy US LNG.
Potential US LNG deliveries to Serbia could come through the Krk terminal in Croatia or via Greece’s Alexandroupolis terminal, supported by new interconnections through Bulgaria.
Serbia currently operates approximately 2,500 kilometers of gas pipelines, it is planning new links, including one toward North Macedonia, and is expanding the Banatski Dvor gas storage facility.
Montenegro, which currently lacks a domestic gas network, is also being drawn into the emerging US-backed LNG framework. Plans include an LNG terminal at the Port of Bar and the possible development of gas-fired power generation.
The country participated in the Transatlantic Gas Security Summit in Washington in February and joined a broader political statement on gas cooperation between the United States and several Central and Southern European countries.
Kosovo currently has no gas infrastructure and relies almost entirely on coal-fired power generation. A proposed gas interconnection with North Macedonia had been included in the European Union’s investment plan for the Western Balkans, but the project was suspended, with the government citing high costs and a strategic preference for renewable energy development.
The proposed pipeline would have provided Kosovo with access to gas from Greek LNG terminals in the Aegean Sea, while a separate link to Albania had also been considered. US officials have indicated that they remain open to supporting commercial cooperation if market conditions become more favourable.
North Macedonia is building new gas infrastructure with support from Washington and Brussels, aiming to reduce its long-standing dependence on Russian gas and position itself as a regional energy transit hub. As a NATO member and EU candidate country, diversification of energy supply has also taken on a clear geopolitical dimension.
In April 2026, Albania signed a strategic agreement worth USD 6 billion involving Venture Global and Aktor LNG USA for long-term LNG supply beginning in 2030. The agreement is part of a broader effort to turn Albania into a regional entry point for US LNG in Southeast Europe.
The plan includes the development of an energy hub in Vlora featuring an LNG terminal and a gas-fired power plant with a capacity of approximately 380 MW. The project would also connect with the Trans-Adriatic Pipeline (TAP), which has transported Azerbaijani gas to Italy since 2020.
Fin Part One.
